India’s pace of economic growth shows that its Viksit Bharat dream is not out of reach

Take the period from 2000 to 2024. The article says India’s GDP grew at 6.3% a year over those years. In real terms, that is right. In dollar terms, India’s GDP grew at 8.8% a year. Exchange rates do not always follow inflation differentials. The rupee’s performance against the dollar in 2024-25 and 2025-26 is proof of that. The inflation gap narrowed, yet the rupee weakened. Over long stretches, though, currency movements and inflation differentials tend to converge.