India is on track to maintain its status as the fastest-growing major economy over the next three years.
According to a report by S&P Global Rating, the robust growth trajectory could elevate India to the world’s third-largest economy by 2030.
India’s GDP growth exceeded expectations at 7.6% in the second quarter of fiscal 2024, prompting many brokerages to revise their full-year estimates upwards.
The transition of India’s economy from predominantly service-oriented to manufacturing-driven is crucial for this growth. Prime Minister Narendra Modi’s government has advocated for domestic manufacturing through initiatives like the “Make in India” campaign.
Despite these efforts, manufacturing currently accounts for about 18% of the country’s GDP, compared to over half of the service sector. S&P highlights the importance of developing a robust logistics framework and enhancing skills and workforce participation, especially among women, to maximize India’s demographic advantage.
One of India’s key strengths in its growth story is its young working population, with nearly 53% of its citizens under 30. Successfully harnessing this demographic dividend through upskilling and increasing workforce participation is vital for India to realize its full economic potential and achieve the status of a global manufacturing hub.
