20/04/2024
India’s economic trajectory, as outlined in a recent government review report, is poised for significant expansion, aiming to reach the ambitious milestone of $7 trillion by 2030. This projection aligns with the broader vision of attaining developed economic status by the country’s 2047 centennial of independence. To ensure the sustainability of this growth, the report emphasizes the necessity for an economic pace surpassing population growth, promoting inclusivity and shared prosperity. A key catalyst identified for this transformative journey is the establishment of a robust digital public infrastructure, bolstered by the expansive reach of e-commerce.
Strategic investments in infrastructure, particularly in the development of roads and railways, form a cornerstone of India’s economic agenda. This prioritization is substantiated by projections from Goldman Sachs, indicating that India is on track to become the world’s second-largest economy by 2075, surpassing not only Japan and Germany but also the United States. A notable feature distinguishing India’s economic model is its reliance on domestic demand, with up to 60% of growth attributed to domestic consumption and investments, as highlighted in Goldman’s report.
The technology sector is identified as a key contributor to this economic surge. Nasscom’s projections indicate an anticipated increase of $245 billion in India’s technology industry revenue by the end of 2023. This growth encompasses various domains, including IT, business process management, and software products.
India’s commitment to self-reliance and global competitiveness is further evident in its approach to exports. The Aatmanirbhar Bharat campaign introduces production-linked incentives (PLIs) to boost the manufacturing of crucial products, reducing dependence on imports, particularly from China. Sectors such as toys, solar panels, garments, machinery, defense equipment, electronics, telecom equipment, mobile phones, and laptops are witnessing increased production, translating into a notable uptick in exports.
Considering the historical trajectory, where India’s GDP was $2 trillion in 2013-14 and has now reached $3.5 trillion in 2022-23, the target of $7 trillion by 2030 appears ambitious yet feasible. This economic ascent is not confined to conventional sectors; it extends to agriculture, where exports are burgeoning, capitalizing on the world’s food shortage and India’s surplus. The report underscores the multifaceted strategy employed under the Aatmanirbhar Bharat campaign, driving exports, especially in critical areas like mobile phones, machinery, solar panels, electronics, and telecom.
In conclusion, the government’s economic vision for India encompasses a holistic approach, integrating digital infrastructure, robust domestic demand, strategic investments, and targeted incentives to position the nation as a formidable global economic player by 2030.