As per a report by EY Economy Watch study, India is set for a substantial economic shift as it is working towards being a developed nation by 2047.
The journey will be significantly influenced by major global trends like de-dollarization, de-globalization, rising technologies, and climatic challenges.
By FY30, India’s GDP is predicted to increase by an estimated amount of $359–438 billion because of Generative AI (GenAI). This highlights the importance of balancing GDP growth and employment creation by strategically managing technology advances with governmental interventions.
Significant economic risks are also posed by climate change, and India must invest in climate-resilient technologies to lessen these risks.
India’s strategic position as a trade connector presents opportunities in the face of geopolitical tensions and trade fragmentation; this is further reinforced by initiatives such as the India-EU corridor and the Iranian Chabahar port.
India may undertake macro-stabilization initiatives with more fiscal flexibility since it has less government debt and can learn from more developed nations to avoid mistakes like the Dutch Disease and the Middle-Income Trap.
In order to guarantee sustained growth, Dr. DK Srivastava of EY India highlights the necessity of prudent fiscal behavior and thoughtful planning.
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