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19 Nov 2024
India is on track to become a $10 trillion economy by 2032, adding $1 trillion to its GDP every 18 months over the next six years, according to a report by IDBI Capital. This growth surge could position India as the world's third-largest economy by 2030.
The report predicts that India's rapid economic rise will be largely driven by its manufacturing sector, which is expected to contribute around 32% to the country’s Gross Value Added (GVA). Initiatives like "Make in India" are anticipated to strengthen the country’s manufacturing base, enabling it to emerge as a global manufacturing hub.
India's economic growth has accelerated significantly in recent years. While it took 63 years to reach a GDP of $1 trillion from 1947, it achieved $2 trillion by 2017 and $3 trillion by 2020. Although the pandemic delayed India’s journey to a $4 trillion economy until late 2024, the report highlights that India is now poised for a new phase of rapid growth.
Between 2024 and 2032, India is projected to reach $10 trillion, supported by strong manufacturing demand, export potential, and favorable government policies such as the Production Linked Incentive (PLI) schemes. The report also forecasts that India will surpass major economies like the US, China, Germany, South Korea, and Japan in the Industrial Production Index (IIP), establishing itself as a top player in global manufacturing.
India's export capabilities are expected to grow significantly as well, with exports potentially making up 25% of the GDP by 2030, reaching $2 trillion. This represents a sharp rise from $61 billion in 2000 to an anticipated $776.7 billion by 2024. Several factors are fueling India's growth, including rising domestic demand due to higher disposable incomes, shifts in global supply chains, growing export opportunities, and a supportive financial environment. With increased public and private investment and a demographic advantage, India is well-positioned to become a leading global economic force.
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