Everywhere I look, from the FT to Linkedin, there appears to be much coverage about the Indian economic story and how the next 20 years will be India’s economically.
Having visited India over 30 times over a 50-year period, I can clearly see things are changing rapidly as it reaches 1.5 billion in population, surpassing China. (As a simple comparison the UK’s population is just 4 % of India’s.)
These are my quick observations from the last 7 days in Delhi.
- The economic power shift is happening now in India, not in 10-15 years. It is happening right now in front of our eyes.
- Infrastructure investment is happening everywhere. This is one of the keys to make India the success story over the next 20 years and India know it. New airports, ports and highways are clearly on the government agenda.
- Self-sufficient energy production is also at the heart of India’s growth plans, with plans for solar energy and green hydrogen being a key part of the vision.
- Technology is everywhere with a super young population embracing tech on all of their smartphones, from advanced payment systems to identity cards.
- A massive young English-speaking population that will by 2047 account for 20% of all jobs in the world by 2047. Yes, you read that right. Despite advances in technology, it is self-evident that an increasing proportion of service jobs in the west will transition to India. Not necessarily because it may be cheaper (which it is), but the people are smart, hard-working and tech enabled.
- The Indian start up scene has seen a massive advancement over the last few years, why? Again because of the young, smart people driving change.
The list could go on and on.
Did You Know?
- India is expected to become the third-largest economy in the world by 2028, behind only the United States and China. (Source: IMF, 2023 World Economic Outlook)
- India’s working-age population is expected to grow by 90 million people between 2022 and 2030, making it the largest working-age population in the world. (Source: World Bank, 2023 World Development Report)
- India’s digital economy is expected to reach $1 trillion by 2025, up from $250 billion in 2020. (Source: NASSCOM, 2022 Digital India Report)
- India’s startup ecosystem is one of the largest and most vibrant in the world, with over 70 unicorns and a total valuation of over $300 billion. (Source: Hurun India Unicorn Index 2023)
- India’s foreign direct investment (FDI) inflows reached a record high of $83.6 billion in 2021-22, up 14% from the previous year. (Source: Department for Promotion of Industry and Internal Trade, Government of India)
But at the heart of the Indian growth story, are its people. The people, make or break a country, but it’s the young people that ultimately drive change.
And there are literally tonnes of smart, young people in India, who will drive this economic story.
As a second-generation Indian, born and brought up in the UK, in a post COVID world I am hugely betting on India and its people.
I always knew those Hindi lessons my mother gave me as a child would come in handy one day.
Despite all the positives’, navigating India is no easy task.
Understanding the culture and bureaucracy is key. Get this wrong, it can turn into a costly and frustrating experience.
For those who want to participate in the Indian growth story or find out more, get in touch, our UK and Indian team are here to support you.
To learn more, you can read about many of the reasons to invest in India on our Learning Centre.
