In the last few months, on one hand, the shadow of recession is visible on the whole world. In such a situation, India has not only overcome them. Rather, India's economic growth has surprised the world. After many veteran economists, now former RBI governor Rajeshwar Rao has stamped India's growth. Experts believe that India is moving fastest on the path of becoming a global leader.
Foreign brokerage houses, rating agencies, economists are not looking positive about India's growth. In fact, if we look at the important indicators of the economy, it becomes clear that they are not looking positive just like that. In fact, if we look at the important economic indicators, it becomes clear that in the coming years, India will become the world's third and then the largest economy. Let us also tell you about those 7 reasons due to which India's economic dominance can be seen in the coming years.
India market size
India's population is the largest in the world. According to statistics, the population of the country is more than 1.4 billion. Because of which India's consumer base becomes huge. Because of which the country remains an attractive center for all industries. As a demographic dividend, India's young population further increases India's development capacity. With an average age of around 29 years, India is poised to fuel innovation and drive economic growth with a tremendous workforce.
power of technology
There is no question on India's power in the tech sector. With the ever-growing software industry, the country has emerged as a global tech centre. This is being seen with the rapid growth of Indian startups in all sectors. In fact, with over 50,000 startups, India's startup ecosystem is the third largest in the world attracting billions of dollars of FDI every year. Startups are flourishing across the country.
Foreign investment increasing year after year
There is a continuous increase in FDI in the country. If we talk about figures, in the last 9 years FDI worth more than 100 billion dollars has come into the manufacturing sector. If we talk about the first quarter of the current financial year, about 11 percent FDI has come. The manufacturing sector will be one of the largest employment generating sectors in the coming years.
GDP figures positive
India's GDP growth has been consistently strong for the last few years. Despite the ups and downs in the global economy, the Indian economy has maintained an average growth rate of around 7 percent. Growth can be sustained due to domestic consumption, investment and growing tech sector. According to estimates, India is expected to become the third largest economy by 2027, with a GDP of more than $5 trillion.
increase in per capita income
The ever-growing middle class in India is a key driver of economic growth. As millions of people shift from low-income to middle-income households, their consumption patterns are changing the country's economy. India's per capita income is projected to double from the current $2,000 to $4,000 in 2028. It is estimated that by 2030, India's middle class will exceed 700 million. This demographic shift translates into increased purchasing power, higher consumption and increased demand for quality products, brands and services across various industries.
increase in defense budget
These are seen happening continuously in global geo-politics. Because of which India is continuously increasing its defense budget to become self-reliant in defense manufacturing and to advance its armed forces. India is one of the top 5 largest military spending countries globally. By 2025, India's defense budget is expected to exceed $70 billion. This increasing budget not only meets the defense needs of the country, but also provides opportunities for investment in defense tech and innovations.
Make in India
Since its launch in 2014, India's “Make in India” initiative has inspired various sectors to grow. Global car makers like Hyundai and Suzuki have increased manufacturing units. Due to which the automotive production of India has increased. Companies like Samsung and Apple have done local manufacturing for their mobile phone business, which has reduced the dependence on imports. Many other industries like pharma, renewable energy and defense have benefited a lot due to local manufacturing incentives.
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