India on its Way to a $10 Trillion Economy

At the annual meeting of government and business leaders in Davos, a high-level panel discussion on the topic of how India can hit the 10 trillion-dollar GDP mark was held at the World Economic Forum 2023 (#WEF2023).

The distinguished panelists consisted of Union Ministers Ashwini Vaishnaw and Smriti Irani and Chairman of Tata Natarajan Chandrasekaran. The panelists believe that the economic growth of India depends mostly on three factors, notably, attracting #FDI, upgrading Infrastructure and adopting an inclusive and sustainable model.

India is experiencing double-digit growth with #GDP increasing 11-12% year-on-year. As another sign of the robust growth, on average 1.5 million people move to jobs in the formal sector every month.

One of the key areas of investment is in railway expansion and upgrade. In the last fiscal year 2021-2022, CAPEX reached USD 23 billion. For FY 2022-2023, the investment is set to increase to USD 26 billion.

As part of Modi’s ‘Make in India’ program, India has put in place policies to lure manufacturers to the sub-continent. To mitigate geopolitical risks and enticed by Production-Linked Incentives (PLI), Taiwanese contract manufacturing giant FoxConn has delocalized part of the production of Apple iPhone to India.

In his view, Mr Natarajan Chandrasekaran believes that supply chain resilience may be sometimes more important than pure efficiency. During his intervention, he also put forward the concept of India+. He defined India+ as “India taking the lead and building an ecosystem so that we can become an alternate, resilient supply chain for the world.”