Thirty-five years after India’s 1991 economic liberalisation, the country has improved its relative position globally, but progress across key measures has remained uneven, according to an analysis by investor Shankar Sharma.
Sharma’s analysis uses percentile rankings to compare India’s performance with other economies. It places India’s overall composite score at about the 62nd percentile in 2024, compared with around the 50th percentile in 1991. The analysis estimates a best-fit improvement of 0.15 percentile points a year.
The study examines four broad areas: economic prosperity, productive capability, external resilience and manufacturing.
External resilience recorded the strongest relative improvement, with India’s percentile ranking rising from 94 in 1991 to 98 in 2024. Economic prosperity also increased, moving from 64 to 75 during the period.
Manufacturing improved from the 14th percentile in 1991 to the 27th percentile in 2024, although the analysis places India relatively low compared with global peers.
Productive capability showed a different trend, with its percentile ranking declining from 45 in 1991 to 42 in 2024. The measure considers factors including merchandise exports, productivity and the sophistication of economic activity.
The analysis also highlights India’s large domestic market as both a source of economic strength and a factor that can reduce pressure on businesses to compete internationally.
Sharma’s assessment therefore points to further work in exports, manufacturing, productivity and economic complexity if India is to improve its relative global economic position more rapidly.
