India’s Economy to Grow by $1 Trillion Every 1.5 Years, Says IDBI Capital Report
A recent report by IDBI Capital highlights that India’s economy is set to add $1 trillion to its GDP every 1.5 years over the next six years. This rapid growth aims to position India as a $10 trillion economy by 2032, making it the third-largest economy globally by 2030.
Key Drivers of Growth
The report emphasizes that this accelerated growth will be largely driven by the manufacturing sector, which is expected to contribute 32% to the incremental Gross Value Added (GVA). Initiatives like ‘Make in India’ are designed to strengthen India’s manufacturing base and transform the country into a global manufacturing hub.
Historical Growth
India took 63 years, from 1947 to 2010, to reach a GDP of $1 trillion. However, growth has significantly accelerated in the past decade. India reached $2 trillion in 2017 and $3 trillion in 2020. Although the COVID-19 pandemic slowed growth slightly, extending the timeframe to $4 trillion by the end of 2024, the country is now set to see exponential growth in the coming years.
Future Projections
Between 2024 and 2032, India is expected to hit $10 trillion in GDP, driven by strong manufacturing demand, export potential, and favorable government policies such as Production Linked Incentive (PLI) schemes. The report also projects that India will overtake major global economies in manufacturing, surpassing countries like the US, China, Germany, South Korea, and Japan in terms of the Industrial Production Index (IIP).
Export Potential
India’s increasing export potential is another key factor, with exports estimated to account for 25% of GDP by 2030, reaching $2 trillion. This represents a significant jump from $61 billion in 2000 to a projected $776.7 billion by 2024.
Conclusion
Rising domestic demand, global realignment of supply chains, high export potential, and a supportive financial ecosystem are propelling India’s manufacturing and export growth. With public and private capital expenditure rising and a demographic dividend in its favor, India is on course to establish itself as a global economic powerhouse.
Doubts Revealed
IDBI Capital -: IDBI Capital is a company in India that helps people and businesses with money matters, like investing and financial planning.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year.
$1 trillion -: A trillion is a very big number. It is 1 followed by 12 zeros (1,000,000,000,000).
Make in India -: ‘Make in India’ is a program started by the Indian government to encourage companies to make their products in India.
manufacturing sector -: The manufacturing sector is the part of the economy that makes products in factories, like cars, clothes, and electronics.
export potential -: Export potential means how much a country can sell its products to other countries.
third-largest economy -: An economy is how much money a country makes. If India becomes the third-largest economy, it means it will be the third richest country in the world.