October 25, 2023
India's substantial and rapidly growing middle class plays a pivotal role in propelling consumer spending
The burgeoning domestic consumer market, coupled with its expansive industrial sector, positions India as an increasingly attractive investment destination
By 2022, India's Gross Domestic Product (GDP) had already exceeded that of the United Kingdom and France
India is anticipated to remain one of the world's fastest-growing economies over the next decade
India, currently ranked as the world’s fifth-largest economy, is poised to surpass Japan and become the third-largest economy by 2030, with an expected GDP of US$ 7.3 trillion, according to the latest report from S&P Global Market Intelligence.
S&P Global identifies several key drivers of growth that support the long-term outlook for the Indian economy. India’s substantial and rapidly growing middle class plays a pivotal role in propelling consumer spending. The burgeoning domestic consumer market, coupled with its expansive industrial sector, positions India as an increasingly attractive investment destination for various multinational corporations across sectors such as manufacturing, infrastructure, and services.
This rapid economic expansion will result in India’s GDP surpassing that of Japan by 2030, propelling India into the position of the second-largest economy in the Asia-Pacific region.
The GDP of India is projected to register a growth rate of 6.2-6.3% in the fiscal year concluding in March 2024, solidifying its status as the fastest-growing major economy for this fiscal year. This remarkable trajectory was evident in the stellar 7.8% growth recorded during the April-June quarter of 2023.
S&P Global anticipates that the near-term economic forecast remains positive, with continued rapid expansion throughout the remainder of 2023 and into 2024. This outlook is underpinned by the robust growth of domestic demand in the country.
The surge in foreign direct investment inflows into India over the past decade reflects a promising long-term growth outlook. This positive trajectory is bolstered by India’s youthful demographic profile and the rapid rise of urban household incomes.
By 2022, India’s GDP had already exceeded that of the United Kingdom and France. By 2030, India’s GDP is forecasted to outpace Germany as well.
The ongoing digital transformation in India is expected to accelerate the growth of e-commerce, reshaping the retail consumer market landscape over the next decade. This transformation is attracting leading global technology and e-commerce companies to the Indian market.
Overall, India is anticipated to remain one of the world’s fastest-growing economies over the next decade, solidifying its status as one of the most crucial long-term growth markets for multinationals across a wide range of industries, including manufacturing, electronics, chemicals, banking, insurance, asset management, healthcare, and information technology.
Source: Financial Express