India Soon To Emerge As Global Economic Superpower
Moving ahead by the government’s production-linked incentive (PLI) schemes, strong local manufacturing aimed at becoming a supply chain hub, and impressive GDP growth, India is on the path to becoming a global economic superpower within the next decade.
The country has embarked on this journey under various initiatives launched by Prime Minister Narendra Modi and his administration over the past ten years.
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Creating Millions Of New Jobs
India has seen significant growth in areas such as local manufacturing, new semiconductor plants, AI, 5G, startups, innovation, and PLI schemes for multiple sectors, all while upskilling the workforce and creating millions of new jobs.
The PLI scheme will triple the manufacturing sector, increasing its market size from $459 billion in FY24 to $1.66 trillion. This growth rate exceeds the average annual increase of $175 billion over the last decade. A report by DSP Mutual Fund projects that the manufacturing sector’s contribution to GDP will rise from 14 percent in FY24 to 21 percent by FY34, driven by lower logistics costs and improved infrastructure. Infrastructure investments will increase from 33 percent of GDP in FY24 to 36 percent by FY29.
Electronics manufacturing
Electronics manufacturing alone has created more than 1.2 million new jobs and has surpassed $100 billion. India’s electronic manufacturing will reach $250 billion within the next five years.
The PLI schemes for 14 sectors are set to attract investments worth Rs 3 lakh crore to Rs 4 lakh crore in the coming years.
President Droupadi Murmu
In her address to Parliament today, President Droupadi Murmu stated that the pace of reforms will continue to accelerate to meet the aspirations of the Indian people for rapid development. Over the past decade, India has risen from the 11th largest economy to the fifth. From 2021 to 2024, India has grown at an average annual rate of 8 percent, now contributing 15 percent of global growth. The last five years have focused on key reforms and policy changes by the government, and the next five years will emphasize executing these plans to make India a global powerhouse.
