india-to-be-global-economic-superpower-by-2034

India, driven by ambitious government initiatives such as the Production-Linked Incentive (PLI) schemes, robust local manufacturing towards becoming a supply chain hub, and strong GDP growth, is on a trajectory to emerge as a leading global economic superpower in the coming decade.

 

Over the past decade, under Prime Minister Narendra Modi's leadership, India has launched various schemes leading to tremendous growth in local manufacturing, semiconductor plants, AI, 5G, startups, and innovation. These initiatives, including PLI schemes for various sectors, have also focused on workforce skill development and creating lakhs of new jobs.

 

Driven by the PLI initiatives, India's manufacturing sector is forecast to expand threefold, projecting a market size of $1.66 trillion by FY34, up from $459 billion in FY24.

 

This growth trajectory, surpassing previous decade averages, is expected to elevate the manufacturing sector's contribution to GDP from 14% in FY24 to 21% by FY34, supported by reduced logistics costs and enhanced infrastructure investments, which are slated to rise from 33% to 36% of GDP by fiscal year 2029.

 

The electronics manufacturing sector alone has seen the creation of over 1.2 million new jobs, surpassing $100 billion, and is poised to reach $250 billion in the next five years.

 

PLI schemes targeting 14 sectors are anticipated to attract investments ranging from Rs 3 lakh crore to Rs 4 lakh crore in the coming years.

 

Addressing the Parliament on Thursday, President Droupadi Murmu said that the pace of reforms will be further accelerated in tune with the aspirations of the people of India for rapid development. In the last 10 years, India has risen to become the fifth-largest economy from the 11th-ranked one, she said.

 

From 2021 to 2024, India has grown at an average rate of 8 percent annually. Today, India alone is contributing 15 percent of global growth, the president said. The last five years focused on key reforms by the government and policy changes, and the next five years are going to be about execution in making India a global powerhouse.