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India's Economy: From Growth to Transformation
8 Jan
Summary
- India's GDP growth projected at 6.6% by FY2027.
- New growth engines include AI, green hydrogen, and tourism.
- Manufacturing to shift from volume to value creation.
India is entering 2026 from a position of strong macroeconomic stability, setting the stage for a transformative economic journey. Projections indicate a GDP growth of around 6.6% by FY2027, fueled by a diversified range of new growth engines. These include advancements in artificial intelligence, the development of green hydrogen, a burgeoning tourism sector, quick commerce, and the expansion of the silver economy, all combining technology, infrastructure, and domestic demand.
The manufacturing sector is undergoing a strategic reimagining, shifting from past volume-driven models to a future centered on technology, design, and supply-chain integration. This evolution aims to lift manufacturing's GDP share significantly over the next decade, with defense, semiconductors, and electronics leading the charge. Meanwhile, the digital economy, propelled by AI, is expected to grow nearly twice as fast as the overall economy, adding substantial value and transforming sectors like BFSI and healthcare.
