“By adding USD 1tn every 1.5 years going forward, India is forecasted to emerge as the third-largest global economy over the next six years,” said the report.
The report highlighted that India’s accelerated growth will be driven primarily by the manufacturing sector, which is projected to contribute 32% to the incremental Gross Value Added (GVA). Key initiatives such as “Make in India” are expected to play a pivotal role in bolstering the nation’s manufacturing capabilities and positioning India as a global manufacturing hub.
It also noted the rapid pace of India’s economic expansion. While it took 63 years, from 1947 to 2010, to reach a GDP of $1 trillion, the country achieved $2 trillion by 2017 and $3 trillion by 2020, reflecting a sharp uptick in growth over the past decade.
According to the report, although the COVID-19 pandemic caused a slight delay, pushing the timeline for reaching a $4 trillion GDP to the end of 2024, India is now poised for rapid growth in the coming years.
Between 2024 and 2032, India is projected to reach a $10 trillion GDP, fueled by robust demand in manufacturing, strong export potential, and supportive government policies like the Production Linked Incentive (PLI) schemes.The report also said that India will surpass leading global economies in manufacturing, overtaking nations such as the US, China, Germany, South Korea, and Japan in the Industrial Production Index (IIP).”India to overtake top 5 economies in manufacturing IIP …US, China, Germany, South Korea and Japan… India has the potential to grow on similar lines supported by policy reforms and favourable business climate,” the report added.
The report highlighted India’s growing export potential, forecasting exports to make up 25% of the GDP by 2030, reaching USD 2 trillion. This marks a substantial rise from USD 61 billion in 2000 to an expected USD 776.7 billion by 2024.
The report noted that India’s manufacturing and export growth is driven by several key factors: rising domestic demand due to increasing disposable incomes, the global realignment of supply chains, significant export potential, and a supportive financial environment.
With both public and private capital expenditures on the rise, coupled with a favorable demographic dividend, India is well-positioned to emerge as a global economic powerhouse.
(With ANI inputs)