Updated April 17th, 2024 at 16:16 IST

India's ascendancy: A powerhouse emerging from the East

While China's growth is projected to slow down in the coming years, India is expected to maintain a robust pace at 6.8% in the current financial year.

Reported by: Business Desk
Indian Economy | Image:Unsplash

The global economic landscape is undergoing a significant shift. While established economies grapple with uncertainties, India is rapidly emerging as a beacon of hope and stability. Indian economic growth is boasting a compelling narrative, characterised by robust growth, a youthful population, and a strategic embrace of digital transformation.

Let's not get it wrong — China remains the undisputed economic powerhouse in Asia. However, India presents a compelling alternative with distinct advantages:


Growth trajectory

While China's growth is projected to slow down in the coming years, India is expected to maintain a robust pace at 6.8 per cent in the current financial year (FY25). This makes India a more attractive option for long-term investments. Moreover, India's young population offers a significant advantage over China's aging demographics. This translates to a larger workforce and a growing consumer base for decades to come.


Burgeoning domestic market

India is home to the largest population globally, with a significant portion falling within the working-age bracket. This translates to a vast domestic market with a growing appetite for consumption, creating a strong foundation for sustained economic expansion.


India boasts a young demographic, with a median age of 28. This youthful population is not only a source of skilled labor but also a vibrant consumer base driving demand across various sectors. This demographic dividend offers a significant competitive advantage compared to aging populations in many developed countries.

Investing in the future

The Indian government is playing a proactive role by investing heavily in infrastructure development. This includes initiatives in transportation, energy, and digital connectivity. These investments will not only improve the overall business environment but also unlock further economic potential across regions.

Digital revolution

India is at the forefront of the digital revolution. The IT sector has emerged as a powerhouse, contributing significantly to the country's GDP and generating millions of jobs. This digital prowess manifests in several ways. India is a global leader in the IT services industry, providing skilled professionals and cost-effective solutions to companies worldwide. This expertise positions India as a preferred destination for outsourcing and fosters innovation across various sectors.

Tech-savvy population

Internet penetration in India is witnessing explosive growth. This increasing digital accessibility empowers individuals, fuels e-commerce, and facilitates the delivery of essential services in education, healthcare, and finance, even in remote areas.

The burgeoning digital ecosystem fosters a culture of innovation and entrepreneurship.  A thriving startup scene is developing solutions for local challenges and creating globally relevant products and services. This innovation ecosystem paves the way for a more dynamic and competitive economy.


Attracting foreign investment

The government is actively pursuing policies to attract foreign direct investment (FDI). This includes initiatives in sectors like manufacturing, infrastructure, and retail.  Increased FDI injects capital, fosters technological transfer, and creates job opportunities.


Focus on skill development

Recognising the importance of a skilled workforce, the government is investing in education and skill development programs. This ensures that the workforce is equipped with the necessary skills to cater to the demands of the evolving job market.


India's embrace of economic reforms reflects its commitment to global integration. The country actively participates in international trade agreements and fosters strong trade partnerships. This openness to global markets strengthens India's position in the global economic landscape.

What India's rise means to the world

India's economic rise presents exciting opportunities not just domestically but also for the world.

  • Lucrative investment hub:  India's growing economy presents a lucrative market for foreign investors seeking to tap into a dynamic and expanding market. The government's focus on reforms and FDI makes India an attractive destination for global investment.
  • Reliable supply chain partner:  India's skilled workforce and robust manufacturing sector position it as a reliable and cost-effective partner in global supply chains. This not only benefits international companies but also creates jobs and fosters technological advancements within India.
  • Centre for innovation:  India's vibrant startup ecosystem offers fertile ground for collaboration and innovation.  This can lead to the development of solutions that address global challenges and benefit economies worldwide.

Published April 17th, 2024 at 16:16 IST