With remarkable dynamism, India has made a genuine economic leap in recent years, with growth figures close to 9%, progressively making it one of the drivers of the world economy and a potential to become one of the world’s four leading economies in a few years according to some analysts. Many agree that this astounding growth is due, to a large extent, to the consumption driven story buoyed by a dynamic retail scene and a population of 1.2 billion.
Although this population is marked by gaps in socio-economic conditions, there is also a growing working-age population with a rising purchasing power and growing fashion consciousness. Goldman Sachs estimates that over the next decade, as this population earns, consumes and saves more, these factors could contribute about 4% annually to India's GDP.1
Although the recent slowdown has signaled some fragility of the country’s economic performance as well as the issues, such as weaknesses in infrastructure and education in addition to severe inequalities between social classes and between urban and rural areas, that remain to be solved, the country's demographic dividend promises to be substantial over the next couple of decades. Goldman Sachs estimates that India will add about 110 million workers to its labor force over that time, which is more than the U.S., China, Russia and Japan will add combined.
1 Source: Goldman Sachs, A view from India, 2012
Did you know ?
1/ India is a top destination for private clean energy investment, according to a research report released by The Pew Charitable Trusts.
India’s clean energy sector continued to flourish in 2011, with private investment increasing 54 per cent to US$ 10.2 billion, placing the country at sixth position among the G-20 nations.
This was the second highest growth rate among the G-20 nations.
2/ India is the global leader in the IT-business process outsourcing (BPO) industry with half of the world’s back office being located here.
Indian outsourcing revenue at US$ 59 billion for 2011, accounts for 51 per cent of the global offshore market share, as per a report by Tholons Research.
The total direct employment by Indian IT-BPO sector (as of 2011) was 1.98 million and indirect employment was 7.5 million
3/ The Indian internet economy is expected to touch Rs 10.8 trillion (US$ 203.77 billion) by 2016, according to a report titled ‘Connected World Series study’ by the Boston Consulting Group.
India’s internet economy’s growth rate of 23 per cent makes it the second fastest across the G-20 countries and ahead of many other developing nations.
The report ‘The $4.2 trillion Opportunity: The Internet Economy in G-20′, further notes that if the internet were a sector, it would be the eighth largest in India.