The economic health of a country is dependent upon the trades it takes
into considerations. It is therefore very important for any economy to
focus on the aspects of the economic activities that are ongoing within
the economy. India is at the foremost in terms of developing its trade
activities in the last few decades. It is extremely important for a country
like India to make sure that all the economic activities are intact and
happening as usual. India is set to become the third-largest economy by
2030.
India has the conditions in place for an economic boom fuelled by
investments in manufacturing, the energy transition, and the country’s
advanced digital infrastructure and these drivers will make India 3rd
largest economy and stock market before the end of this decade, said
global investment bank Morgan Stanley in a report.
The report titled Why This Is India’s Decade looked at the trends and
policies shaping the future of India 2030 economy.
As a consequence, India is gaining power in the world economy, and in
our opinion, these idiosyncratic changes imply a once-in-a-generation
shift and an opportunity for investors and companies it said.
The four global trends demographics, digitalization, decarbonization
and deglobalization are favouring what it termed as New India. It said
India would drive a fifth of global growth through the end of this
decade.
How will growth affect consumption:
The number of households earning in excess of $35,000/year is likely to
rise fivefold in the coming decade, to over 25 million.
The implications of the rising household earnings are GDP likely to
more than double to $7.5 trillion by 2031, a discretionary consumption
boom, and an 11 per cent annual compounding of market capitalization
to $10 trillion in the coming decade.
India’s per-capita income, it said, would rise from USD 2,278 now to
USD 5,242 in 2031, setting the stage for a discretionary spending boom.
India to become 3 rd largest economy as majority of the work of
corporations across the world are completed with India’s support. It is
extremely important for India to be aware of the growing trends in the
global market and act accordingly. The number of global in-house
captive centers that opened in India over the last two years was almost
double that of the prior four years.
During the two pandemic years, the number of people employed in this
industry in India rose from 4.3 million to 5.1 million, and the country’s
share of global services trade rose 60 basis points to 4.3 per cent, it
said.
As per estimates around India 2030 economy, the number of people
employed in India for jobs outside the country is likely to at least
double to over 11 million, and the report estimates global spending on
outsourcing could rise from $180 billion per year to around $500 billion
by 2030.
This, the report said, will have significant effects on both commercial
and residential real estate demand.
The following are some of the factors due to which India can become a
global leader in terms of the economy :
1.) GDP growth – Over the next 10 years, India could account for 20
percent of the growth that the world will generate. Currently, the
households in India that earn over $35,000 a year is about 5
million. Based on the forecast, this number will likely reach 25 million
by early 2030. So, that’s a fivefold increase in the number of people
that who can buy Louis Vuitton purses.”
2.) Exports: As of now, India exports 20 percent of its GDP. India’s share
in global exports will double in the next decade. So, we will be able to
withstand some slowdown in global growth.
3.) Discretionary consumption: Discretionary consumption would rise in
10 years, and many sub-sectors will surprise meaningfully. “Travel,
education, home effects — these are all likely to see major increases in
spends. Even sales of residential homes because we have been in a 10-
year bear market, as far as home purchases are concerned
The present GDP India 2022 is at 9%. Further, the report estimates that
India’s manufacturing share of GDP will rise to 21 per cent by 2031,
implying an incremental $1 trillion manufacturing opportunity.
India’s global export market share is expected to more than double at
4.5 per cent by 2031, providing an incremental $1.2 trillion export
opportunity.
India’s services exports will almost triple to $527 billion (from $178
billion in 2021) over the next decade as India becomes 3rd largest
economy
For more information: https://smeventure.com/the-msme-sector-saw-credit-growth-in-22-23-by-rs-52800-cr/
E-commerce penetration will nearly double from 6.5 per cent to 12.3
per cent by 2031 in India.
Internet users in India are bound to increase from 650 million users to
960 million users while online shoppers will grow from 250 million
participants to 700 million participants over the next 10 years.
Around 25 per cent of incremental global car sales over 2021-2030 will
be from India and expect 30 per cent of 2030 passenger vehicle sales to
be electric-run.
India should hit a major inflection for the next residential
property boom in 2030 a confluence of high per-capita income, a mid-
30s median age, and higher urbanization.
India’s workforce in the technology services sector to more than double
from 5.1 million in 2021 to 12.2 million in 2031.
Healthcare penetration in India can rise from 30-40 per cent now to 60-
70 percent implying 400 million new entrants to the formal healthcare
system.
Do watch: https://www.youtube.com/shorts/DsawkXKoGGo
Over $700 billion in energy investments are expected over the next
decade as India accelerates its energy transition.
It is very important to consider the geographical confluence of India
when considering its key position in global trade as India is strategically
located in the Asian continent, it is sufficient to easily export to
different parts of the world and fulfill the goal of high India GDP2030
world bank as per their estimates. India is thus on its way to become
the 3 rd largest economy in the world after US and China.