India on way to become a global economic superpower

New Delhi: Driven by the government's production-linked incentive (PLI) schemes, robust local manufacturing towards becoming a supply chain hub, and strong GDP growth, India is marching towards becoming a global economic superpower in the next decade.

The country embarked upon its journey under various schemes launched by Prime Minister Narendra Modi and his government in the last 10 years. It saw tremendous growth -- be it a thrust on local manufacturing, new semiconductor plants, AI, 5G, startups, innovation and PLI schemes for various sectors, while skilling the workforce and creating lakhs of new jobs.

Driven by the PLI scheme, the country’s manufacturing sector is projected to expand threefold, reaching a market size of $1.66 trillion from the current $459 billion (FY24).

This growth surpasses the average increase of $175 billion experienced over the last decade. According to the latest report by DSP Mutual Fund, the manufacturing sector's contribution to the GDP is anticipated to rise from 14 per cent in FY24 to 21 per cent by FY34, bolstered by lower logistics costs and improved infrastructure. Moreover, investments in infrastructure are set to climb from 33 per cent of GDP in FY24 to 36 per cent by fiscal year 2029.

More than 12 lakh new jobs have been created in electronics manufacturing alone, which has crossed $100 billion. India's electronic manufacturing is projected to reach $250 billion in the next five years.

The PLI schemes for 14 sectors are projected to see investments worth Rs 3 lakh crore - Rs 4 lakh crore in the next couple of years.

Addressing the Parliament on Thursday, President Droupadi Murmu said that the pace of reforms will be further accelerated in tune with the aspirations of the people of India for rapid development. In the last 10 years, India has risen to become the fifth largest economy from the 11th ranked one, she said.

From 2021 to 2024, India has grown at an average rate of 8 per cent annually. Today, India alone is contributing 15 per cent of the global growth, the President said. The last five years focused on key reforms by the government and policy changes and the next five years are going to be about execution in making India a global powerhouse.