India stands at an important juncture in its growth story. It is the shining star of the world economy and offers a reliable alternative to China. Burgeoning middle class, abundance of youth, radicle development across sectors is making the country brim with positivity. This growth has been a complex journey marked by rapid transformation.
The story of India is growth of a nation that worked hard dreaming to regain its global position. To think that there was a time when India was in a situation of ship to mouth is unimaginable today. From five-year plans to license raj and then breaking free into liberalisation, have paved way for massive opportunity for masses. Agriculture, manufacturing and services have grown many folds to the extent of India becoming a major hub for the world. A report by Morgan Stanley points that India is on track to become the world’s third largest economy by 2027, surpassing Japan and Germany, and have the third largest stock market by 2030. This decade is India’s and to make the most of it, some major factors will play a key role.
Workforce for the world
India has proved its mettle as a reliable and efficient outsourcing partner for services of the IT sector. With the thrust on manufacturing supported by investment incentives and infrastructure spend, manufacturing units will soon want to expand their operations here. While they get the advantage of being closer to a large market, India will benefit from the development of ancillary units and employment to its younger population. The investment sentiment among multi-nationals is at an all-time high and the report predicts that the share of manufacturing will increase from 15.6 per cent to 21 per cent by 2031.
Digitalisation
When Jio came into the mobile market, it democratised access to data. And thanks to the pandemic, digital solutions were embraced much rapidly. UPI, caught on like wildfire and helped India leapfrog to a digital economy without much hassle. India’s young population are tech savvy and prefer services and solutions at the click of a button. This has forced several traditional sectors to undergo digital transformation and realign their operations to the new demand. The report estimates that the income distribution could flip over the next decade, and consequently overall consumption in the country could more than double from USD 2 trillion in 2022 to USD 4.9 trillion by the end of the decade—with the greatest gains going to non-grocery retail, including apparel and accessories, leisure and recreation and household goods and services, among other categories.
Going green
India has announced to achieve net zero by 2070, and 50 per cent of electricity requirements from renewables by 2030. It is already on path to achieve its 2030 goals, yet it is the third highest polluting nation in the world. The country still has the responsibility of pulling millions out of poverty and usually an energy intensive path is followed. But if India manages this in a green way, it would be a lesson for the whole world on balancing development and emissions.
Already huge investments in electric vehicles, green hydrogen, ethanol and other green energy sources have been announced. Green hydrogen is expected to play a major role and India aims to become a global hub for production and exports.
To reach net zero by 2070, IEA estimates that USD 160 billion per year financing would be necessary between now and 2030. This is about three times the current investment level. But at the same time, the low carbon technologies have the potential to create a market of USD 80 billion by 2030.
The economy is at an important stage and all sectors are entering a new growth phase where sustainability, embracing technology and upskilling or reskilling will play an important role. In this Independence Day Special Issue, IE reached out to leaders from various sectors to share major milestones that led to unprecedented transformation and also the key gamechangers that will enable the industry and the nation to ride the growth wave.
