India's 2047 vision: 8-10% growth needed to achieve developed status
What's the story
India needs to grow at an annual rate of 8-10% to become a developed economy with a GDP of $23-$35 trillion by 2047, a report by Bain & Company has said.
The study, 'India @2047: Transforming India into a Tech-Driven Economy,' also highlights the need for drastic improvements in workforce productivity and sector-specific transformations.
Despite current economic challenges, the Narendra Modi-led NDA government remains hopeful of achieving the ambitious target.
Growth drivers
Strategic investments and tech advancements are key
The Bain & Company report emphasizes the need for strategic investments in electronics, energy, automotive, and services. It also stresses upon rapid technological advancements to maintain the high growth rate.
The services sector currently dominates India's economy, contributing over half of its GDP.
However, the manufacturing sector lags behind at about 17%, suggesting a shift from over-reliance on services to nurturing manufacturing to boost employment and accelerate growth.
Workforce expansion
India's workforce to surge by 200 million by 2047
The report predicts India will add nearly 200 million new workers to its labor force by 2047.
This massive increase highlights the need for job creation, especially improving female workforce participation.
Women currently make up about 25% of the labor force. The study recommends raising this number to between 40-50% is key not just to economic growth but also to greater gender equity and maximizing India's demographic dividend.
Sectoral impact
Five key sectors to drive India's economic transformation
The report highlights five key sectors - electronics, energy, chemicals, automotive, and services - that will play a major role in India's economic transformation.
These sectors need structural reforms, technological modernization, and increased investments for job creation and wealth generation.
As the economy diversifies, the services sector will contribute nearly 60% of India's GDP while manufacturing will drive much of the industrial growth.
Potential hurdles
Challenges and solutions for India's growth trajectory
The report also highlights possible challenges to India's growth, such as rising geopolitical unrest, growing financial constraints, and the intensifying impact of climate change.
It recommends structural reforms across sectors such as labor and technology to mitigate these risks and ensure long-term sustainable growth.
These steps will be key to steering India toward becoming a developed economy by 2047.
At present, the Indian economy is growing below 7%.