Major global players see India becoming superpower soon as nation is on the way to become the third largest economy
Driven by the government's production-linked incentive (PLI) schemes, robust local manufacturing towards becoming a supply chain hub, and strong GDP growth, India is marching towards becoming a global economic superpower in the next decade.
The country embarked upon its journey under various schemes launched by Prime Minister Narendra Modi and his government in the last 10 years. It saw tremendous growth -- be it a thrust on local manufacturing, new semiconductor plants, AI, 5G, startups, innovation and PLI schemes for various sectors, while skilling the workforce and creating lakhs of new jobs.
Driven by the PLI scheme, the country’s manufacturing sector is projected to expand threefold, reaching a market size of $1.66 trillion from the current $459 billion (FY24).
This growth surpasses the average increase of $175 billion experienced over the last decade. According to the latest report by DSP Mutual Fund, the manufacturing sector's contribution to the GDP is anticipated to rise from 14 per cent in FY24 to 21 per cent by FY34, bolstered by lower logistics costs and improved infrastructure. Moreover, investments in infrastructure are set to climb from 33 percent of GDP in FY24 to 36 percent by fiscal year 2029.
More than 12 lakh new jobs have been created in electronics manufacturing alone, which has crossed $100 billion. India's electronic manufacturing is projected to reach $250 billion in the next five years.
The PLI schemes for 14 sectors are projected to see investments worth Rs 3 lakh crore - Rs 4 lakh crore in the next couple of years.
According to President Droupadi Murmu, the pace of reforms will be further accelerated in tune with the aspirations of the people of India for rapid development. In the last 10 years, India has risen to become the fifth largest economy from the 11th ranked one, she said.
From 2021 to 2024, India has grown at an average rate of 8 per cent annually. Today, India alone is contributing 15 percent of the global growth, the President said. The last five years focused on key reforms by the government and policy changes and the next five years are going to be about execution in making India a global powerhouse.
12.5 crore jobs created in 10 years
Prime Minister Narendra Modi said recently that India's job market is on the rise and major global players are predicting that India will soon be a superpower. “With 12.5 crore jobs created in FY14-23, EPFO subscribers doubling, and India poised to be the 3rd largest economy by 2030, the future looks bright!” PM Modi remarked.
Highlighting the 'Great Indian Job Story' with numbers, PM Modi’s post points out that 69 per cent of Indians believe the country’s overall economy is moving in the right direction compared to the global average of 38 per cent. This sentiment is bolstered by India’s rise to the world’s fifth largest economy driven by domestic consumption and the growing influence in forums like BRICS and the G7 summit.
It also spotlights 12.5 crore jobs created from FY14-23, with an average of 2 crore jobs per year; 56 per cent rise in workers' income (FY22-23); AI market to touch $77 billion by 2027; and India on track to become a $10 trillion economy
Stressing that India is the emerging superpower of the 21st century, UK Foreign Secretary David Lammy said last month the countries have shared interests on topics like green transition, new technologies, economic security, and global security.
"I am travelling to India in my first month as Foreign Secretary because resetting our relationship with the Global South is a key part of how this government will reconnect Britain for our security and prosperity at home," said Lammy, who was accompanied by Lindy Cameron, the British High Commissioner to India, and Harjinder Kang, the British Trade Commissioner for South Asia and Deputy High Commissioner for Western India.
Lammy said that India is one of the fastest-growing economies in the world. "Our Free Trade Agreement (FTA) negotiations are the floor, not the ceiling, of our ambitions to unlock our shared potential and deliver growth -- from Bengaluru to Birmingham. We have shared interests on the green transition, new technologies, economic security and global security," he mentioned.
Viksit States are the key
As India begins its journey to become the third largest economy in the world in the next few years, the collective effort of all states and the Centre can help the country reach this milestone faster and achieve the goal of Viksit Bharat by 2047.
According to Prime Minister Narendra Modi, the country has achieved steady growth in the past 10 years. The economy, which was ranked the 10th largest economy in the world in 2014, has risen to become the fifth largest economy in 2024.
Now, the collective aim of the government and all citizens is to become the third largest economy in the world, said PM Modi while chairing the ninth Governing Council Meeting of NITI Aayog last month.
From being a predominantly import-driven country, India now exports many products to the world. The country has made its mark on the world stage in wide-ranging sectors like defence, space, startups and sports. The country’s job market is on the rise and major global players are predicting that India will soon be a superpower.
The Economic Survey 2023-2024 projects India’s GDP growth rate at 6.5 to 7 per cent for 2024-25 as it sees the economy on a strong wicket.
At the NITI Aayog meeting, PM Modi appreciated the confidence and enthusiasm of more than 140 crore citizens, which is the driving force behind the progress of the country.
The vision of Viksit Bharat can be realised through Viksit States, and that the aspiration of Viksit Bharat should reach the grassroots level -- to each district, block and village. “For this, each state and district should create a vision for 2047 so as to realise Viksit Bharat @ 2047,” PM Modi emphasised.
The Prime Minister also appreciated the Aspirational Districts Programme anchored by NITI Aayog. He observed that the key to its success was continuous and online monitoring of measurable parameters, which led to healthy competition among districts to better their performance in different government schemes.
PM Modi also emphasised skilling and training of youth to make them employment ready as the world looks favourably towards India for skilled human resources. The Union Budget 2024-2025 has allocated Rs 2 lakh crore for education and employment.
Top destination for FDI
The country is emerging as a top destination for foreign investment in the manufacturing sector and in the last decade, foreign direct investment (FDI) inflows in the sector surged almost 69 per cent to reach $165.1 billion, according to the government.
Jitin Prasada, Minister of State for Commerce and Industry, informed that FDI equity inflow in the manufacturing sectors in the last 10 financial years (2014-24) has increased by 69 per cent to $165.1 billion as compared to $97.7 billion in the previous 10 financial years (2004-14).
The minister said that the total FDI inflow of $383.5 billion came during the past five financial years (2019-20 to 2023-24) alone, mainly driven by production-linked incentive (PLI) schemes.
According to a latest HSBC survey, the manufacturing activity in India continued to expand at a robust pace in July on the back of strong domestic demand and new export orders.
