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India to become $10 trillion economy by 2032; Overtaking US and China
Industry News- Sep 25,24
India's economic expansion has accelerated in recent years; while it took 63 years, from 1947 to 2010, to reach a GDP of $1 trillion, it achieved $2 trillion by 2017 and $3 trillion by 2020.
According to a report by IDBI Capital, India is set to add $1 trillion to its GDP every 18 months over the next six years, positioning itself to become a $10 trillion economy by 2032 and the world's third-largest economy by 2030.
The report forecasts that India's accelerated growth will largely stem from the manufacturing sector, expected to contribute 32% to the incremental Gross Value Added (GVA). Initiatives like "Make in India" are anticipated to enhance the nation’s manufacturing capabilities, solidifying its role as a global manufacturing hub.
India's economic expansion has accelerated in recent years; while it took 63 years, from 1947 to 2010, to reach a GDP of $1 trillion, it achieved $2 trillion by 2017 and $3 trillion by 2020. Although the COVID-19 pandemic caused a slight delay in reaching a $4 trillion GDP—pushing the timeline to late 2024—the country is now poised for robust growth.
From 2024 to 2032, India’s GDP is expected to hit $10 trillion, driven by strong demand in manufacturing, significant export potential, and supportive government policies like the Production Linked Incentive (PLI) schemes. The report highlights that India will surpass leading economies such as the US, China, Germany, South Korea, and Japan in the Industrial Production Index (IIP), underscoring its manufacturing capabilities.
Moreover, the report predicts that exports will constitute 25% of India’s GDP by 2030, reaching $2 trillion—up from $61 billion in 2000 and an expected $776.7 billion by 2024. Factors fueling this growth include rising domestic demand due to increasing disposable incomes, the global realignment of supply chains, and a supportive financial environment.
With rising public and private capital expenditures and a favorable demographic dividend, India is well-positioned to emerge as a global economic powerhouse.
(ET & ANI)
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