India - the fastest-growing major economy in the world

India, with a population of more than 1.4 billion, is becoming one of the main engines of global economic growth. By 2030 it has the chance to become the second-largest economy in the Asia-Pacific region and the third-largest in the world. This growth is driven by strong macroeconomic fundamentals, rising investment and the dynamic development of the services and industrial sectors.

Key growth drivers

• Consumer spending
  A growing middle class and rising household incomes are contributing to higher demand for goods and services.
• Foreign investment
  India is attracting significant greenfield investment, with more than a thousand projects announced in 2022 worth almost USD 80 billion.
• Development of the technology sector
  The growing number of start-ups and fintech companies supports employment and increases the innovativeness of the economy.

Forecasts for the future

Economic forecasts point to growth in India of 6.4% in 2024 and 6.5% in 2025, following very solid growth of 7.7% in 2023. Average annual growth in 2026-2030 may be around 6.6%.

Challenges

Despite its impressive growth, India must face a number of challenges - modernising its infrastructure, improving the quality of education and healthcare, and reducing social inequality. Among other things, the government aims for the country to be among the top 25 in the world for trade logistics by 2030.