By 2030, India is poised to become the second-largest economy in the Asia-Pacific region, fueled by robust macroeconomic fundamentals and an increasingly favorable business environment that encourages investment-driven growth. The upswing in bank lending and capital expenditures by companies, combined with improving business conditions, signals promising prospects for accelerating economic expansion in India. Additionally, the expanding role of services and India’s diversification beyond the ICT sector will confer a competitive edge, while the manufacturing sector is also anticipated to experience growth. Our projection anticipates India’s economic growth to maintain an average of approximately +6.3% per annum until 2030, driven predominantly by investments and consumer spending, with inflation averaging around 4.8% per annum—well within the Reserve Bank of India’s target range of 2-6% for the period between 2021 and 2030. However, amidst this optimistic macroeconomic outlook, there are challenges in managing transformative forces that have the potential to reshape the global landscape and significantly impact India, including globalization, demographic shifts, climate change, advancements in AI and technology, and geopolitical tensions.
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