India will become the fourth largest economy in the world at the end the year and is poised to become the 3rd largest in the coming years—a milestone for us to be proud of as a nation. While the low GDP per capita remains a concern, the country’s growing economic strength will have significant foreign policy implications. It will enable India to allocate more resources towards defense, security, and expand its diplomatic engagements. But the question we must ask is whether the Indian economy can eventually influence the global economic order and shape international economic outcomes.

The challenge with India’s current ranking as the world’s fourth-largest economy is that it reflects primarily the size of the market, workforce and economic transactions by a huge population, rather than innovative strength or impact on global economic order. While India is a four trillion USD plus economy, that is puny in the global scheme of things, and its ability to influence world economy is punier. What is missing is a decisive technological lead, strong manufacturing capabilities, substantial investment in research and development, and a robust pipeline of important patents for its industry and scientists. Let me explain why this matters.

The reason why the United States (with a GDP of around 30 trillion USD) and China (approximately 19.5 trillion USD) are so far ahead of India, among other factors, is that their economies are driven by more than just the volume of economic activity. While India’s large population—much of it young—is engaged in basic economic activities, the US and China have built their advantage through innovation, technological leadership, high-value industries, and a focus on quality and efficiency over and above the ability of their population to engage in economic activities. Put differently, while much of our workforce engages in basic economic activities, that of the US and China are engaged in high-skilled economic activities aided by the........

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