Is India on its way to becoming the 3rd largest economy & by when?

Approximately ten years ago, India was the world's 10th largest economy with a GDP of $ 1.9 trillion. Today, it boasts a GDP of $3.7 trillion (estimated FY24), the fifth largest in the world.? India is expected to continue to grow and develop and is projected to be the third-largest economy in the world by 2030. This growth will be driven by the country's strong manufacturing sector, as well as increased foreign investment.

India, the world's largest democracy and one of the fastest-growing major economies, is poised on the brink of a monumental transformation. With ambitious economic reforms, a burgeoning entrepreneurial ecosystem, and a youthful population, India is setting its sights on the coveted milestone of a 10-trillion-dollar economy. The year 2023 was a historic year for India, as it took up the leadership of the world's most visible global economic assembly, the G20, demonstrating its economic strength and diplomatic elegance to the rest of the globe.

Economic Growth Trajectory

India's economic progress has been nothing short of extraordinary. Over the last two decades, the country has regularly grown at a rate of roughly 6-7%, making it one of the key drivers of global growth. A demographic dividend, a growing middle class, and increased urbanization have all contributed to this upward trend.

On the economic front, India has been a crucial growth engine for the world, contributing 16% of global growth by 2023. The country's 7.2% growth rate in fiscal 2022-2023 was the second highest among G20 countries and nearly double the average for developing market economies that year.

1. Demographic Dividend

India has a young population, with a median age of approximately 28 years. This demographic dividend represents a wonderful opportunity as the country's workforce grows, driving productivity and innovation in a variety of areas.

2. Infrastructure Development

Massive expenditures in infrastructure, including transportation, electricity, and digital connectivity, are building the groundwork for long-term economic growth. Projects such as Bharatmala, Sagarmala, and Digital India are driving growth and promoting inclusion.

3. Digital Revolution

India's digital revolution, marked by ubiquitous internet access and smartphone use, is transforming the way businesses function and citizens interact with services. The development of fintech, e-commerce, and digital payment systems is democratizing financial services and increasing consumption.

Over a decade ago, India launched Aadhaar, its national identity project that employs biometric IDs to verify evidence of residence, laying the groundwork for a more digital economy.

Today, with a thriving tech industry, the country has emerged as a vital hub for innovation and technology services, not only driving economic growth but also establishing India as a key participant in shaping the future of the digital economy.

4. Entrepreneurial Ecosystem

India has emerged as a global powerhouse of entrepreneurship and innovation. Startups from a variety of industries, including technology and healthcare, are making use of India's talent pool, market potential, and favourable regulatory framework to disrupt old businesses and create new markets.

5. India has also established the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure, as well as suggested a global renewable energy grid. Prime Minister Modi made a momentous announcement at COP28 in Dubai, introducing the Green Credit Initiative as a substitute for carbon credits.

Several substantive and modest reforms have assisted the country's economic growth over the last decade.

• The inclusion of the African Union in the G20
• The creation of crucial multistakeholder alliances, such as the Global Biofuel Alliance and the Global Initiative on Digital Health.
• Progress on the United Nations Sustainable Development Goals (SDGs).
• The reform of multilateral development banks, as well as the expansion of digital public infrastructure, demonstrate the potential to reach a consensus to handle global concerns collectively and effectively. ???????? ?????????????

Let’s revisit the achievements of India in the last 10 years!

Challenges on the Road Ahead

While India's trajectory towards a 10-trillion-dollar economy is promising, it faces several challenges that warrant attention!

The world is now witnessing the rise of a nation with a thriving economy and a dedication to equality, sustainability, and international cooperation. India is positioned to play a key role in shaping the global economy in 2024 and beyond.

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