India to transform into high-income country with GDP of $23–$35 trillion by 2047

New Delhi: India is set to transform into a high-income country with a projected GDP of $23–$35 trillion by 2047, driven by sustained annual growth of 8-10 per cent, according to a report on Thursday.

This will be powered by India’s demographic dividend, technological innovation, and sectoral transformation, according to the report by Bain & Company and Nasscom.

With nearly 200 million individuals expected to enter the workforce in the coming decades, India has a unique opportunity to drive high-value job creation and unlock significant economic potential.

Five key sectors, including electronics, energy, chemicals, automotive, and services, would act as strategic growth levers due to alignment with global trends and scalability, with the potential to address India’s unique challenges and advantages.

Rising income, a growing pool of skilled workers, and continuous improvements in infrastructure are some of the key factors that can fuel this growth, said the report.

“By investing in digital and transport infrastructure, enhancing domestic manufacturing, and driving collaborative R&D, we can position India as a leader in future technologies and global trade. A multi-pronged, tech-driven approach will be key to unlocking inclusive and sustainable growth,” said Sangeeta Gupta, Senior Vice President at Nasscom.

Advances in AI-driven chip design, touchless manufacturing, and backward integration into component manufacturing and design could enhance cost competitiveness and innovation, driving the sector’s export share from 24 per cent to 45 per cent-50 per cent by 2047 and its GDP contribution from 3 per cent to 8 per cent-10 per cent.

India’s share of renewables in overall energy generation has the potential to rise from 24 per cent in 2023 to 70 per cent in 2047 backed by modernising energy infrastructure, and scaled investments in green energy. India is also likely to transition from a net energy importer to a net exporter.

“AI-powered molecular design and digital twin technologies, along with other tech-driven improvements can lead to a potential increase India’s share in global value chain from around 3 per cent to over 10 per cent in 2047,” said the report.

Auto-components exports sector are likely to reach $200–$250 billion (by 2047), driven by near-term share capture in ICE market and longer-term shift to EVs.

“Electronics is one of the key sectors instrumental in this journey and is poised to emerge as a global manufacturing hub expected to $3.5 trillion by 2047, contributing more than 20 per cent to global production,” said Lokesh Payik, Partner at Bain & Company.

—IANS