The Prime Minister of India Narendra Modi has set an ambitious yet achievable target for India to reach a $5 trillion economy. With prudent policies and strategic investments powering sustained growth, India aims to become the world’s third largest economy during PM Modi’s next term. Mr Ravi Singhal, CEO, GCL Broking, shares how investors will get benefit with India’s economy growth.
Strategic Investments for Sustained Growth
India invests in strategic sectors like infrastructure, digital connectivity, healthcare, and education to stimulate short-term growth and ensure global competitiveness. Key areas include infrastructure growth, digital transformation, and emerging industries. Investments in fintech, edtech, and electric vehicles help India gain global market share in frontier growth industries, while also focusing on infrastructure, digital connectivity, and technology.
Foreign Direct Investments
India receives among the highest annual foreign direct investment (FDI) inflows globally, facilitating its growth journey. FDI inflows have grown by 22% CAGR in the last decade. The government’s fostering of a favorable investment climate, including FDI limit relaxations across sectors and investor-friendly reforms, accounts for this ever-rising investment trajectory even amidst global flux.
Manufacturing Shifting to India
Global giants like Apple now manufacture iPhones and other products locally in India. Attractive government incentives convince multinationals to not just “Make in India” but “Make for India and beyond.” As supply chains diversify away from overdependence on China, India seizes the day to become a worldwide manufacturing hub spanning electronics, machinery, textiles and more. Local manufacturing reduces imports while boosting exports too.
New Export Horizons
From traditional exports like agriculture and textiles to IT services, pharmaceuticals and defense equipment – India is unlocking its export potential across diverse sectors. Ambitious export promotion policies aim to propel shipments to $1 trillion by 2030. India also intends to claim larger shares of global trade by integrating into cross-border supply chains. Lean policies and production efficiencies can make India a viable alternative to China for foreign buyers.
Unicorns Galore
India has seen a surge in unicorn startups, with over 100 valued at $1 billion or more, in 2021 and 2022, making it the third largest startup ecosystem globally. By leveraging public spending, structural reforms, manufacturing, and export drive, India aims to grow its economy into a $5 trillion GDP giant within a decade.
