According to a report released on Thursday, India is poised to become a high-income nation by 2047, with a projected GDP of $23–$35 trillion, fueled by a consistent annual growth rate of 8-10 percent.
According to the report by Bain & Company and Nasscom, this will be driven by India’s demographic dividend, technological innovation, and sectoral transformation.
India has a distinctive opportunity to unleash significant economic potential and drive the creation of high-value jobs, as nearly 200 million individuals are anticipated to enter the workforce in the coming decades.
The potential to address India’s unique challenges and advantages is present in five key sectors: electronics, energy, chemicals, automotive, and services. These sectors would serve as strategic development levers due to their alignment with global trends and scalability.
According to the report, this expansion may be stimulated by a burgeoning workforce, increasing income, and ongoing infrastructure enhancements.
“We can establish India as a global trade leader and pioneer in future technologies by investing in digital and transport infrastructure, fostering collaborative R&D, and enhancing domestic manufacturing.” “In order to achieve inclusive and sustainable growth, a multifaceted, technology-driven strategy will be essential,” stated Sangeeta Gupta, Senior Vice President at Nasscom.
By 2047, the sector’s export share could increase from 24 percent to 45 percent-50 percent, and its GDP contribution could increase from 3 percent to 8 percent-10 percent, as a result of recent advancements in AI-driven chip design, touchless manufacturing, and backward integration into component manufacturing and design, which could improve cost competitiveness and innovation.
Modernizing energy infrastructure and increasing investments in green energy have the potential to increase India’s share of renewables in overall energy generation from 24% in 2023 to 70% in 2047. It is also probable that India will transition from a net energy importer to a net exporter.
The report stated that India’s share in the global value chain could potentially increase from approximately 3 percent to over 10 percent in 2047 as a result of AI-powered molecular design and digital twin technologies, as well as other technological advancements.
The auto-components exports sector is anticipated to reach $200–$250 billion by 2047, as a result of the near-term share capture in the ICE market and the longer-term transition to EVs.
Lokesh Payik, a Partner at Bain & Company, stated that electronics is a critical sector that is anticipated to develop into a global manufacturing hub, with an estimated value of $3.5 trillion by 2047, and a contribution of over 20% to global production.
