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India’s official position as the world’s fourth-largest economy has drawn reactions from political and business leaders, with Chandni Chowk MP and Secretary General of the Confederation of

All India Traders (CAIT), Praveen Khandelwal, highlighting the potential impact on small businesses and domestic trade.

“This achievement brings advantages and benefits for India include global recognition & credibility as India’s economic ascent enhances its global stature, strengthens its negotiating power

in international forums, and positions it as a key influencer in shaping the global economic order. It will open bigger opportunities for small businesses to grow as big business in terms of

fiscal discipline, empowerment and faster adoption of digital technology,” Khandelwal said in a statement.

“On the other side, it will boost Investor confidence in India leading to increased FDI, capital inflows, and deeper integration with global value chains,” he added.

Khandelwal said India’s rise to the fourth spot globally could create wider opportunities for small and medium enterprises (SMEs), especially as the country becomes more integrated with

global supply chains. A stronger global position is likely to improve access to capital, technology, and international markets for smaller businesses.

He noted that a larger economy brings greater fiscal capacity, which could translate into higher public investment in infrastructure and essential services. This, he said, would help improve

logistics and supply networks that are crucial for retail and trade. The expanded economic capacity, he added, could also spur job creation and entrepreneurship, particularly among the

country’s large youth population.

“India’s rapid digital transformation and innovation-driven economy will continue to expand, driving breakthroughs in AI, fintech, space, and green technologies,” Khandelwal added.

Khandelwal also acknowledged that India’s growth has taken place during a period of global economic uncertainty, including inflation, supply disruptions, and geopolitical tensions. “India’s

ability to maintain a relatively stable economic trajectory has created a more predictable environment for entrepreneurs and investors,” he said.

On Saturday, speaking at a press briefing after the 10th governing council meeting of NITI Aayog, policy think tank CEO BVR Subrahmanyam shared that India became a $4 trillion economy, the

fourth largest in the world, overtaking Japan, citing IMF data.

He added that within a span of two and a half and three years, India will become the third largest economy.