India is performing "exceedingly well," according to Bank of Japan Governor Haruhiko Kuroda, speaking at the World Economic Forum's closing panel in Davos.
With Europe on the verge of a recession and the United States' GDP stagnating, India stands out among the world's largest economies.
According to the Centre for Economics and Business Research, India could overtake Germany and Japan to become the world's third-largest economy in the next decade, with a GDP of $10 trillion by 2035.
Several CEOs from non-Indian companies, including Nokia CEO Pekka Lundmark, identified India as one of their fastest-growing markets at the WEF meeting.
Börje Ekholm, CEO of Ericsson, stated that 5G infrastructure was rapidly growing in Sweden.
"It's for the whole digital India, and creating a digital society in India," Ekholm told CNBC. "They're on a strong path with 4G but now they're building out 5G at an even faster pace."
India "will very shortly have the best digital infrastructure outside of China," he asserted, thanks to telecom giants Bharti Airtel and Jio.
India has had less extreme inflation than many other nations, with the CPI coming in at 5.7% in December.
Dinesh Kumar Khara, chairman of State Bank of India, replied that it was "absolutely" accurate that India was in a superior position than its competitors when asked by CNBC's Steve Sedgwick.
Although he agreed that inflation was still a "menace" and that slowdowns in global growth would also affect the country, he praised the country's efforts to roll out vaccines, control consumer price growth, assure food security, and focus on infrastructure development.
As concerns rise about the West's reliance on Taiwan, India hopes to become a global chipmaking powerhouse; and, according to India's commerce minister, Apple wants to relocate 25% of its iPhone manufacturing to the country (though this has not been confirmed by Apple).
It is already a global leader in digital payments and plans to expand into fields such as solar, wind, and green hydrogen generation.
Despite future plans to increase renewables and achieve net-zero emissions by 2070, India has profited from purchasing Russian oil at a significant discount, while Europe has suffered dramatically higher costs, market volatility, and fears of shortages.
Although poverty rates have decreased over the past 15 years from 55.1% to 16.4%, the nation nevertheless has one of the greatest levels of income disparity in the world, which increased during the pandemic.
Some analysts contend that India's recent increase in capital inflows, which has been accompanied by the Sensex stock market index rising 5% over the past year while falling in the U.S. S&P 500, Europe's Stoxx 600, China's SZSE Composite, and Hong Kong's Hang Seng Index, is primarily the result of relative stability compared to volatility elsewhere and may slow when external factors change.