As India approaches its 100 years of independence, the nation is poised to become a global economic powerhouse. The vision of “Viksit Bharat” aligns with India’s long-term goals of achieving rapid, sustainable, and inclusive growth. By 2047, India aims to be a developed economy with a thriving population, robust infrastructure, and global influence.
Economic Growth and Projections
India’s economy has consistently been the fastest-growing among major global economies. Key milestones that India is expected to achieve as part of Viksit Bharat@2047:
India’s economic growth remains robust, with the economy growing by 8.2% in FY 2023-24, driven by several factors, including but not limited to:
Financial Markets: A Catalyst for Growth
India’s financial markets have experienced significant growth in recent years, further solidifying the nation’s economic trajectory
Demat accounts: The increasing number of demat accounts, now totalling over 170 million, signals rising financial literacy and a growing culture of investment among retail investors.
Mutual funds: Number of mutual fund investors has also surged, growing from 10 million in 2014 to 45 million by March 2024
Retail Investors: As of FY24, individual (retail) investors have approximately USD 433 billion invested directly in equities and USD 337 billion in mutual funds, reflecting a burgeoning interest in financial market participation.
Initial Public Offering (IPO): The IPO landscape has seen unprecedented activity, with over 60 IPO launches in 2024 alone. In 2024, the total amount raised through IPOs reached approximately USD 8 Billion, indicating a robust appetite for public listings.
Foreign Direct Investment (FDI): Coupled with a favourable regulatory environment, foreign direct investment (FDI) has also grown steadily, with sectors such as automobiles, FMCG, fintech, and renewable energy leading the charge.
The increasing number of stock market participants, alongside advancements in digital trading platforms, has made investing more accessible to the masses, fostering a vibrant investment culture. This robust financial ecosystem, supported by thriving capital markets and increased retail and foreign participation, is propelling India closer to its vision of becoming a global economic superpower by 2047.
Workforce and Demographic Advantage
India’s greatest strength lies in its 767 million-strong youth population, the largest globally. Over 65% of the population is under the age of 35, offering a significant demographic advantage that is expected to boost innovation, consumption and productivity.
With a labour force participation rate that reached 42.4% by the end of 2023, India is projected to maintain its status as the fastest-growing large economy in the world.
Digital and Technological Transformation
India’s digital revolution is a key pillar of its economic growth. India boasts one of the largest and most affordable digital infrastructures in the world.
India’s technological advancements extend beyond digitization. The country is building a domestic semiconductor industry, essential for
technology and manufacturing capabilities. By fostering startups and entrepreneurship, India has become home to over 100,000 startups and 117 unicorns, further driving innovation.
Infrastructure and Industry Growth
India’s ambitious infrastructure development programs are central to its economic expansion. Key highlights:
India’s manufacturing sector has also emerged as a key driver of growth, contributing more than 50% to industrial GVA. By 2047, the
manufacturing sector is projected to account for 25% of GDP, while the services sector will contribute 54%.
Sustainability and Renewable Energy
India’s commitment to sustainability is evident in its renewable energy initiatives. The country ranks fourth globally in renewable energy
production and has set an ambitious target to achieve 500 GW of installed renewable energy capacity by 2030. This will reduce India’s
dependence on fossil fuels and promote green growth.
India is on its way to Net Zero Emissions by 2070 as announced by the Hon’ble PM Narendra Modi during the 2021 United Nations Climate Change Conference (COP26) in Glasgow.
Ending Note: A Developed India by 2047
India’s path to Viksit Bharat@2047 is paved with rapid economic growth, digital transformation, robust infrastructure, and global trade. By
harnessing its demographic dividend, technological advancements, and sustainable development, India is well on its way to becoming a global leader. The future promises improved living standards, increased global influence, and a resilient, self-reliant economy that will shape the world for years to come.
Source – EY India@100 report
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