Business

India’s Vision For 2047: A Tech-Driven Economy

India’s Economic Vision: Transforming Into a Tech-Driven Economy

India envisions becoming a high-income nation by 2047, with a GDP of $23-35 trillion.

This transformation requires sustained annual growth of 8-10%, driven by tech innovations, demographic advantages, and sectoral growth.

By 2047, India’s services sector will contribute 60% to the GDP, while manufacturing will make up 32%, helping to elevate the country’s economic status.

Harnessing India’s Demographic Dividend

India is set to experience a major shift in its workforce, with nearly 200 million people expected to enter the job market in the coming decades.

This demographic shift presents a unique opportunity for high-value job creation, which can unlock the country’s economic potential.

Tech Advancements And Global Trade

Technological fragmentation is an emerging risk as countries shift towards local supply chains and ‘friendshoring’.

This trend could cost middle-income economies like India up to 5% of GDP. However, India is poised to become a global manufacturing hub, especially in electronics, with the sector expected to contribute $3.5 trillion by 2047.

Key Sectors Driving Growth

The report identifies five key sectors – electronics, energy, chemicals, automotive, and services – as pivotal to India’s growth.

These sectors align with global trends and hold the potential to address India’s unique challenges.

Technological advancements, a growing skilled workforce, and infrastructure improvements will act as catalysts for this growth.

Overcoming Structural Challenges

India faces key challenges in workforce development. A workforce gap of 50 million by 2030 requires an increased focus on STEM education and skilling initiatives.

Additionally, India must reduce its reliance on imports by emphasizing backward integration and local manufacturing.

Increasing Women’s Workforce Participation

To sustain growth, India must increase women’s workforce participation from 29% to 50% by 2047.

Upskilling the workforce and improving the number of graduates will further boost labor productivity and contribute to growth across sectors.

Impact Of Emerging Technologies

The rise of artificial intelligence (AI), machine learning (ML), and cloud computing will significantly impact India’s economic trajectory.

AI and ML, in particular, will drive demand for data centers, contributing to a 15-20% year-on-year growth in the sector.

India’s Future In Global Tech

As India focuses on digital and transport infrastructure, strengthening its manufacturing capabilities, and fostering global partnerships, the country is poised to lead in future technologies.

By investing in collaborative R&D and fostering innovation, India can position itself as a global leader in trade and technology.

India’s transformation into a tech-driven economy will depend on strategic investments in infrastructure, workforce development, and technology.

By focusing on key sectors, expanding the workforce, and leveraging technological advancements, India is on track to realize its vision of becoming a high-income, globally competitive economy by 2047.

Also Read: RBI Bulletin Signals Economic Momentum Rise In H2FY25

Anamika Agarwala

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