New Delhi [India], September 21 : Indian economy to add USD 1 trillion to its GDP every 1.5 years over the next six years, according to a report by IDBI Capital.
The report highlighted that India is on the verge of a major transformation, aiming to become a USD 10 trillion economy by 2032, positioning itself as the third-largest economy globally by 2030.
"By adding USD 1tn every 1.5 years going forward, India is forecasted to emerge as the third-largest global economy over the next six years," said the report.
The report noted that this accelerated growth will be driven largely by the manufacturing sector, which is expected to contribute 32 per cent to the incremental Gross Value Added (GVA).
It also highlighted the role of initiatives like "Make in India," which as per the report are designed to strengthen India's manufacturing base and transform the country into a global manufacturing hub.
The data also highlighted that India took 63 years, from 1947 to 2010, to reach a GDP of USD 1 trillion. However, growth has significantly accelerated in the past decade. India reached USD 2 trillion in 2017, just seven years later, and USD 3 trillion in 2020.
While, as per the report, the COVID-19 pandemic slowed growth slightly, extending the timeframe to USD 4 trillion by year end of 2024, the country is now set to see exponential growth in the coming years.
Between 2024 and 2032, as per the report, India is expected to hit USD 10 trillion in GDP, driven by strong manufacturing demand, export potential, and favourable government policies such as Production Linked Incentive (PLI) schemes.
The report also projected India will overtake major global economies in manufacturing, surpassing countries like the US, China, Germany, South Korea, and Japan in terms of the Industrial Production Index (IIP).
"India to overtake top 5 economies in manufacturing IIP ...US, China, Germany, South Korea and Japan... India has the potential to grow on similar lines supported by policy reforms and favourable business climate," the report added.
It added India's increasing export potential, with exports estimated to account for 25 per cent of GDP by 2030, reaching USD 2 trillion. This represents a significant jump from USD 61 billion in 2000 to a projected USD 776.7 billion by 2024.
The report mentioned that rising domestic demand fueled by increasing disposable incomes, global realignment of supply chains, high export potential, and a supportive financial ecosystem are the key factors which are propelling India's manufacturing and export growth.
With public and private capital expenditure rising and a demographic dividend in its favour, India is on course to establish itself as a global economic powerhouse.