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India's Economic Ascent: Third-Largest Economy by 2030?
18 Jan
Summary
- India poised to be world's third-largest economy by 2030.
- Competitiveness hinges on combining cost, scale, and resilience.
- Sunrise sectors like clean energy are key growth drivers.
India is projected to become the world's third-largest economy around 2030, a key discussion point at the World Economic Forum. Consultancy major BCG's India Head, Rahul Jain, stated that accelerating this growth trajectory to reach the milestone as early as 2028 hinges on boosting the manufacturing sector's contribution to GDP.
Investments in emerging sectors such as clean energy, electronics, and semiconductors are identified as crucial growth engines. Deepening India's integration into global value chains can be achieved by scaling up electronics, automotive components, renewable-energy hardware, and the semiconductor ecosystem. Jain stressed that global competitiveness now stems from a blend of cost, scale, and resilience, with geopolitics increasingly influencing trade and supply chains.
India's robust economic growth, significantly above the global average, is supported by strong domestic demand and increasing per capita incomes. Political stability and credible macroeconomic management further bolster investor confidence. The nation is strategically pursuing both domestic and international markets, leveraging scale in sectors like electronics and pharmaceuticals to enhance export competitiveness.
