The Rise of India as a Global Economic Power

India, with its vast population and burgeoning economy, is rapidly emerging as a global economic power.

As of this year, India’s GDP is projected to grow between six and seven percent, making it the world’s fastestgrowing major economy. This growth trajectory suggests that India’s economy could expand from approximately USD 3.5 trillion in 2023 to around USD 7 trillion by the end of the decade.

Investment Destination

Global investment banks such as Morgan Stanley, Goldman Sachs, and Barclays are increasingly viewing India as a prime investment destination. This influx of foreign investment is prompting companies worldwide to develop strategies tailored to the Indian market. While China still holds the crown for global economic growth, India’s growth rate, even if marginally higher by about one percent per year, could position it as the leading driver of global economic expansion by 2028.

Manufacturing and Urbanization

For India to fully realize its economic potential, significant improvements in key areas like manufacturing, urbanization, workforce, and infrastructure are necessary. Currently, manufacturing accounts for only 16 percent of India’s economy, compared to 26 percent in China. The Indian government aims to increase this share to 25 percent by 2025. This shift would require a substantial portion of India’s agricultural workforce, comprising 150 million people, to transition to manufacturing jobs, fueling urbanization.