India Aiming for High-Income Status with GDP of $23–$35 Trillion by 2047
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Synopsis
India is poised to become a high-income country by 2047, with a projected GDP of $23–$35 trillion, driven by 8-10% annual growth, fueled by demographic, technological, and sectoral advancements.
Key Takeaways
- Projected GDP of $23–$35 trillion by 2047.
- Annual growth rate of 8-10%.
- Focus on five key sectors: electronics, energy, chemicals, automotive, and services.
- Significant increase in renewable energy contribution.
- Transforming into a global manufacturing hub.
New Delhi, Feb 20 (NationPress) India is on the path to becoming a high-income nation, with a projected GDP ranging from $23–$35 trillion by 2047, fueled by a consistent annual growth rate of 8-10 percent, as indicated in a report released on Thursday.
This transformation will be significantly driven by India's demographic dividend, advances in technology, and changes across various sectors, according to findings from Bain & Company and Nasscom.
With an anticipated influx of nearly 200 million individuals into the workforce in the next few decades, India stands at a unique crossroads to foster high-quality job creation and tap into immense economic potential.
Five pivotal sectors—electronics, energy, chemicals, automotive, and services—are identified as crucial growth drivers, aligning with global trends and showcasing scalability while addressing India's specific challenges and strengths.
Factors such as increasing income levels, a burgeoning skilled workforce, and ongoing advancements in infrastructure are essential components that can propel this growth, the report suggests.
“By channeling investments into digital and transport infrastructure, boosting domestic manufacturing, and fostering collaborative R&D, we can establish India as a frontrunner in emerging technologies and global trade. A comprehensive, tech-focused strategy will be critical for achieving inclusive and sustainable growth,” stated Sangeeta Gupta, Senior Vice President at Nasscom.
Innovations in AI-driven chip design, touchless manufacturing, and enhanced integration into component manufacturing could improve cost-effectiveness and spur innovation, potentially elevating the sector's export share from 24 percent to 45-50 percent by 2047, alongside a GDP contribution increase from 3 percent to 8-10 percent.
India's renewable energy contribution to overall energy generation is projected to escalate from 24 percent in 2023 to 70 percent by 2047, supported by modern energy infrastructure developments and increased investments in green energy. The nation is also anticipated to shift from being a net energy importer to a net exporter.
“Technologies like AI-powered molecular design and digital twin can potentially boost India’s share in the global value chain from about 3 percent to over 10 percent by 2047,” the report elaborated.
The auto-components export sector is projected to hit $200–$250 billion by 2047, leveraging immediate market share in internal combustion engine (ICE) vehicles while transitioning towards electric vehicles (EVs).
“The electronics sector is vital in this evolution and is expected to become a global manufacturing hub, projected to reach $3.5 trillion by 2047, contributing over 20 percent to global production,” remarked Lokesh Payik, Partner at Bain & Company.
