India Set to Add USD 1 Trillion to GDP Every 1.5 Years, Aiming for USD 10 Trillion Economy by 2032

A report by IDBI Capital predicts that India's economy will add USD 1 trillion to its GDP every 1.5 years, positioning itself as the third-largest globally by 2030 and achieving a USD 10 trillion economy by 2032. The growth will be driven by the manufacturing sector and supportive government policies.

The Indian economy is poised to add USD 1 trillion to its GDP every 1.5 years over the next six years, according to a report by IDBI Capital. The report highlights India's aim to become a USD 10 trillion economy by 2032, potentially making it the third-largest economy globally by 2030.

"By adding USD 1 trillion every 1.5 years, India is forecasted to emerge as the third-largest global economy over the next six years," the report states. This accelerated growth will be driven largely by the manufacturing sector, expected to contribute 32 percent to incremental Gross Value Added (GVA).

Initiatives like 'Make in India' are designed to strengthen the manufacturing base, transforming the country into a global manufacturing hub. From 1947 to 2010, it took India 63 years to reach a GDP of USD 1 trillion. However, recent growth has been faster, with GDP reaching USD 2 trillion in 2017 and USD 3 trillion in 2020. Though the COVID-19 pandemic slightly delayed growth to USD 4 trillion by the end of 2024, exponential growth is forecasted between 2024 and 2032.

India is expected to achieve a USD 10 trillion GDP through strong manufacturing demand, export potential, and favorable government policies like Production Linked Incentive (PLI) schemes. The report projects that India will surpass major global economies, including the US, China, Germany, South Korea, and Japan, in the Industrial Production Index (IIP).

Exports are anticipated to account for 25 percent of GDP by 2030, achieving USD 2 trillion. This signifies a substantial increase from USD 61 billion in 2000 to a projected USD 776.7 billion by 2024. Rising domestic demand, global supply chain realignment, high export potential, and a supportive financial ecosystem are key growth drivers.

With increasing public and private capital expenditure and a demographic dividend, India is on the path to establishing itself as a global economic powerhouse. (ANI)

(With inputs from agencies.)