In the Light of the World’s Ascendant Economy
India has flung open its doors with a slew of favorable business-friendly policies and investment incentives to attract investments from local and foreign investors to drive its Prime Minister’s vision of a digitally-empowered nation with programs like Make in India, Digital India and Smart Cities. All the vital elements for making India the next destination for businesses and multi-national companies seeking new markets and growth are in place.
Fastest Growing Economy
India’s economic engine has been firing on all cylinders, chalking an average 7.9% annual GDP growth between 2003 and 2012. Forecast by World Bank to grow an average 7.7% per annum till 2017, India is the fastest growing economy in the world. The country is also poised to become the top three manufacturing destination in the world by 2020.
India will be the most populous country by 2020, making it the world’s biggest market for global manufacturers and service providers. By 2025, India will become the world’s biggest consumer market with real consumption per capita hitting US$1.064 trillion. Recent sweeping market reforms have flung the doors wide open to foreign investors in several key sectors, making India the most open economy in the world for FDI. International companies are now able to supply products and solutions (including professional AudioVisual and Information Communications Technology) to key industries ranging from aviation, defence, food, pharmaceuticals and retail. With GDP forecast to hit USD4 trillion by 2020, the Indian market is too big to be ignored.
Working Smart, Living Smart
590 million people are expected to live in urban cities by 2030. Every year, 13-15 million people will move into cities from rural areas in search of better lives. The scale of urbanization is unprecedented, presenting a goldmine of opportunities for industries to find smarter ways to manage complexities and improve quality of life. Part of Prime Minister Narendra Modi’s Digital India vision is to build 100 smart cities, and develop industrial and commercial centers on industrial corridors connecting these megacities. Just imagine – smart technologies will drive smart governance, support smart infrastructure, sustain smart environment and connect people and businesses with smart information communications solutions.
India has not only one of the largest populations in the world, but also one of the youngest. More than 50% are below 25 years old. Close to 65% of Indians are in the working age group of 15-64 years, giving India a significant cost and labor competitive advantage. The working age population will continue to rise for the next 50 years. A huge base of English-speaking and skilled work force makes India a top destination for investors. With this advantage, India will be able to reap the demographic dividends for decades to come.
Make In India
The Make in India program was launched by Prime Minister Narendra Modi to transform India into a global design and manufacturing powerhouse. The strategy was to galvanize businesses, partners and investors from around the world to raise contribution of the manufacturing sector to 25% of GDP by 2020. The road map for the largest manufacturing initiative undertaken by a nation in recent history calls for the upgrading of infrastructure, fostering of innovations, development of skills and deployment of wide ranging technologies. More than 400 million people will be trained in various skills under the Skill India program, providing employment opportunities for millions of workers, raising living standards, increasing consumption and escalating GDP growth.