EY, the leading professional services organization, announced its growth projection for India which estimates the Indian economy will reach a GDP size of US$26 trillion (in market exchange terms) by 2047, the 100th year of the country’s independence.
The per capita income is expected to increase to US$15,000, putting the country among the ranks of developed economies. The report, India@100: Realizing the potential of a US$26 trillion economy, was launched by Sri Ashwini Vaishnaw, Railway and IT Minister, Government of India on the sidelines of the World Economic Forum at Davos, Switzerland.
The report underscores the growth trajectory of the Indian economy which is projected to be the highest for any large economy over the coming decades. It also cites key enablers that will underpin the country’s development over the next 25 years that will unleash business opportunities across sectors and will significantly enhance India’s global competitiveness.
It recommends ensuring macroeconomic stability and resilience and continued thrust on reforms, which will be especially relevant in the backdrop of ongoing geo-political conflicts, inflationary pressures, and slowing global growth.
Launching the report, Sri Ashwini Vaishnaw, Minister of Railways, Communications and Electronics & Information Technology in the Government of India, said, “In line with Prime Minister Narendra Modi’s vision, India has commenced its journey into ‘Amrit Kaal’, a uniquely auspicious period, representing India’s opportunity to herald a new world era.”
“There is an unparalleled impetus on developing world-class infrastructure supported by growth and investment-oriented policies and reforms to establish India as a manufacturing and technology hub. Over the next decade, India will not only be the fastest growing economy but will also play an integral role in leading the world into a sustainable future”, Sri Ashwini Vaishnaw added.
Carmine Di Sibio, Global Chairman and CEO, EY said “As this study shows, India offers a unique investment opportunity as the world struggles with heightened consumer demands and increased geo-political pressures.”
“With the biggest talent pool, an accelerated pace of economic reforms, breakthroughs in energy transition, and rapid digital transformation, the long-term growth trajectory is clearly positive. India demonstrates immense potential and is positioned to make a truly transformative impact on the world stage”, Carmine Di Sibio added.
Rajiv Memani, Chairman and Managing Partner, EY India said “The entrepreneurial spirit of the private sector and policy measures of the last few years in the domains of fiscal, digital, physical infrastructure and social inclusion has uniquely positioned India for higher and sustainable growth.”
“India is already among the fastest growing economies globally and is now at an inflection point where a new era of growth drivers will emerge. The next 25 years – the ‘Amrit Kaal’ – must bring an equal and strong focus on providing inclusive opportunities to all sections of the population, including women and those economically and socially disadvantaged”, Rajiv Memani added.
With strong services exports at US$254.5b in 2021-22, India enjoys a strong foothold, especially in the IT and BPO services exports. There is now an opportunity for the country to seize a higher share of transformational and more complex, expertise-based services to grow faster in the IT services sector.
In non-IT services segment, India has an opportunity to fill in the talent gap as developed economies face a shortage of skilled talent due to demographic changes. This would be in areas such as education and healthcare, where services are increasingly being delivered over digital channels. India has the potential to become a services and technology talent hub for the world.