India is poised to emerge as an $8 trillion economy by 2035, driven by its rapid digital transformation and the establishment of key infrastructure such as Aadhaar and UPI. Despite this promising outlook, the country faces significant challenges that must be addressed to sustain this growth trajectory. Income inequality, low levels of formalization in the economy, and productivity gaps remain major hurdles that need urgent attention. Income inequality continues to persist in India, with a significant portion of the population still living below the poverty line. This disparity not only hinders social development but also poses a threat to economic stability. Additionally, the informal sector makes up a large part of the Indian economy, leading to a lack of transparency and accountability. Formalizing this sector is crucial to ensure better regulation and taxation, which can ultimately boost government revenue and public welfare programs. Furthermore, improving productivity across various sectors is essential for long-term economic growth. Investing in education, skills training, and technology adoption can help enhance efficiency and competitiveness, leading to higher output and income levels. As India strives to achieve its economic potential, policymakers, businesses, and civil society must work together to address these challenges and create a more inclusive and sustainable growth path for the country.