India's Ascent to Economic Supremacy: The Road Ahead

India, a nation with a rich historical legacy as a global economic powerhouse, is poised to reclaim its position at the forefront of the world economy. The late economic historian Angus Maddison's estimations and recent developments suggest that India's resurgence is not a distant dream but an achievable reality. We have so many promising factors propelling India's ascent to economic supremacy and currently trooping on the right path to solidify this trajectory.

?India's Economic Potential:

India's economy has been on a remarkable growth trajectory, with a real GDP growth rate of 8% during the 15 years preceding the COVID-19 pandemic. This robust economic performance, coupled with the nation's youthful and large population, positions India for significant growth prospects. As the country accumulates capital and imparts skills to its workforce, the potential for substantial productivity increases becomes evident.?India's GDP per capita, significantly lower than that of China and the U.S., presents vast opportunities for catching up and closing the productivity gap. By deploying existing superior technologies effectively and promoting innovation, India can propel its economy to new heights.

?Harnessing the Power of a Young Population:

India's youthful population presents a triple advantage for economic growth. Firstly, a larger and younger workforce can lead to higher output per capita, boosting productivity. Secondly, higher savings driven by the young population contribute to increased investment, enabling the adoption of superior technologies and driving innovation. Lastly, the energy and vibrancy of a youthful nation foster a culture of innovation, propelling India's economic progress further. However, to fully capitalize on its young population, India must focus on raising its labor participation rate, especially among women. Better education at all levels will play a vital role in achieving this goal, as a more skilled and empowered workforce contributes to economic growth.

Population Size and Economies of Scale:

India's population size, projected to surpass China's in the near future, brings forth significant advantages through economies of scale. Whether it's the provision of public goods, development of infrastructure, or supply chain management, a larger population facilitates cost efficiencies and greater scope for agglomeration. With multinationals seeking alternatives to China through the "China+1" strategy, India stands as a favorable investment destination due to its vast internal market. Reducing trade protectionism, rolling back tariffs, and fostering free trade deals are essential steps to bolster India's position as a global economic player.

?The Imperative for Reform:

To solidify its ascent to economic supremacy, India must build on the spirit of economic reforms initiated in 1991. Embracing liberalization, privatization, and globalization will be instrumental in sustaining growth rates of at least 8% - a critical requirement to overtake the U.S. economy. Swift privatization of public sector enterprises, tax reforms, and reduced trade barriers are areas that demand immediate attention.

India's journey towards economic supremacy is well underway, fueled by its youthful population, economic reforms, and immense growth potential. As the nation harnesses the power of its demographic dividend, it must continue embracing globalization and bold reforms to propel its economy further. With concerted efforts, India can achieve the historic feat of becoming one of the world's top two economies within the next 50 years. Let us seize this moment of opportunity and build a prosperous future for India and the world.