India: 3 Lessons from a Nation on the Move

A visit to India, for anyone working in international development, is always a teachable moment. It's not just the scale and pace of development that impresses, but the determination that fuels every stride forward. Whether meeting with government officials, business leaders, or youth, the message is crystal clear: India is on a transformative journey, with eyes set firmly on becoming a high-income economy in just a generation. And everyone I talked to wants to play a part in this journey.

India is undeniably on the move and has many lessons to offer. Here are three from my recent trip.

1. Aim high

Fact: India grew faster than the rest of the world in the past two decades with its share of the global economy doubling from 1.6% in 2000 to 3.4% in 2023. With extreme poverty falling and infrastructure in focus, the country is charging toward its goal of becoming a high-income economy by 2047. But what I’ve heard time and again in all my meetings is that to make this happen, business as usual won’t cut it.

Transforming India into a global manufacturing powerhouse, with massive investments in infrastructure and human capital—while leveraging digitalization and bolstering macroeconomic stability—is a recipe for success. Yet, achieving high-income status means ramping up growth and keeping it high for the next two decades. A tall order that the country is taking very seriously. As our recently released economic memorandum for India indicates, to reach this goal, the country needs to go full blast and boost all growth engines. Climbing further is possible, but it will not be easy.

As I told The Economic Times and CNBC, three drivers will help fuel this growth: ?????????????

• More investments: We estimate that India should increase its investment-to-GDP ratio from about 33% to 40% over the next decade.
• More productivity: On that front, India can bet on technology and innovation.
• More women in the workforce: If India increased its female labor force participation from about 35.6% to 50%, its GDP would grow by 1%—a significant increase considering the size of the Indian economy.

2. Capitalize on women

Facts: In India, women constitute more than 40% of Science, Technology, Engineering, and Mathematics (STEM) graduates and 15% of pilots are women (three times the global average). And a recent bill aims to ensure that one-third of parliamentarians are women. With ample room to grow and a determination for women to lead, the future looks promising.

What better way to celebrate International Women’s Day this year than in the presence of the President of India, Droupadi Murmu, the nation’s second woman to hold this office? The day captured the essence of a country on the move and the pivotal role that women play—and must continue to play—in India’s success.

During an inspiring panel discussion with Annpurna Devi, Minister of Women and Child Development, and Arjun Ram Meghwal, Minister of State for Law and Justice, I learned that India is shifting the narrative on women’s economic empowerment from one of development that benefits women to that of women-led development.

Given the sheer size of its population, India plays a critical role in accelerating the global agenda for women’s empowerment. Several legislative measures have been introduced to improve women’s participation in the workforce, including increasing maternity leave, ensuring wage equality, and enhancing women’s asset ownership and representation in public and political decision-making. I am proud that 世界银行 Group is helping India develop a childcare policy, a proven way to boost women’s labor force participation.

And while India still has some distance to go to achieve 50% women's participation in the workforce, the nation is already setting remarkable benchmarks in financial inclusion. Nearly 80% of women in India now have bank accounts they manage independently, a significant leap compared to the 68% average for developing economies.

There’s no doubt that investing in women is one of the best investments the country can make.

3.?Focus on skills and jobs

Fact: In 2023, India became the world’s most populous country, with almost two-thirds of its population below the age of 35. But India’s rapid economic growth has not translated into sufficient high-quality jobs to absorb the growing working population.

During this trip, I had the chance to discuss the work we are doing together with our clients on a new partnership framework. Our shared goal? To support India's journey toward "Viksit Bharat" (Developed India) and ensure that this remarkable growth turns into opportunities for all through more private sector-led investments yielding more jobs and a great quality of life by investing in livable planet elements such as clean air, healthy rivers, and smart transport solutions.

India's commitment to enhancing skills and employment is commendable, and we are ready to help the nation achieve these ambitious goals.