India's Economic Rise and the $10 Trillion Opportunity

In the last two years, India has been the fastest-growing major economy in the world.

Exceeding growth estimates, the Indian economy grew at 7.6% in Q2FY24 and is expected to retain the top spot in 2024. By 2030, India is expected to become the third-largest economy in the world. According to the report of the Centre for Economics and Business Research (CEBR), India will become a $ 10 trillion economy by 2035.

India's resilient march has continued on the back of strong domestic demand despite global macro uncertainties. A steady focus on macro stability and sustainable fundamental growth has ensured that the Indian economy remains robust in an uncertain global environment that has been marked by geopolitical tensions, inflationary pressure, and tight liquidity conditions. The global environment is also something that the Reserve Bank of India (RBI) is closely monitoring. Despite the concerns around global risks, India's strong structural drivers are expected to keep sentiments upbeat.

At Aditya Birla Sun Life AMC Limited, as we enter our 30th year in business, I must say that we have been fortunate to see India's trajectory closely as a market participant, having interacted with policymakers and management teams of different companies to understand the changes underway in the country. I thought of highlighting four key factors that to my mind are catapulting India to its next level.

Strong reforms and fiscal discipline