New Delhi: Renewable Energy and India’s Entrepreneurial Mindset to also make a significant impact on India’s GDP growth in the coming decade.
The Indo- European Business Forum (IEBF) today unveiled its report titled ‘Moving Towards a $10 trillion Economy: India 2030’, at the ‘Global Investment Conclave on Investment Opportunities in New India’ in the UK’s House of Lords, London.
The updated figures released by the World Bank for the year 2017 places India as the sixth largest economy of the world, surpassing global giant France. India is well poised to surpass Japan, Germany, Britain, and France to become the third largest economy by 2030.
India is already moving towards its goal with a 23 point jump in the World Bank’s ‘Ease of Doing Business’ index.
The Report examines in detail, the landscape of major sectors such Information Technology, Entrepreneurship, Infrastructure, Education, Energy and MSME, that have been significant contributors to India’s economic growth.
The report highlights a wide ranging view on the current state of the aforementioned sectors in India, highlighting their performance in the past few years, the scenario pertaining to exports, strategies and policies that have fuelled economic growth in the past. The report also captures the various government initiatives and lastly, sector growth expectations.
India leader, Indo European Business Forum (IEBF), Sunil Kumar Gupta said, “Today India represents a land of infinite opportunities. Its young demographic profile combined with its strong industrial base, rapid digitisation, growing infrastructure, resilient startup ecosystem and clear growth vision from the Government, offers India a significant competitive advantage vis-à-vis other developing economies. Initiatives like ‘Make in India’ and ‘Digital India’ have contributed immensely to the growth of both the private and public sectors.”
He further added, “The Global investors today realize the potential of India as the next big market. There is keen interest to invest across sectors in India. With IEBF, it is our aim to create a dialogue to educate the global audience about what India has to offer and encourage investment from the European Union into India.”
Sector Highlights from the Report
Information Technology (IT)
IT services exports are projected to add $10 billion during the fiscal year, to touch $ 126 billion.
The industry is expected to grow to $ 350 billion by 2025 and BPM is expected to account for $ 50-55 billion out of the total revenue. The Industry currently contributes 7 per cent share in GDP.
Indian e-commerce sector is also expected to go $ 200 billion by 2026 from $ 38.5 billion as of 2017 accounting for 67 per cent of global outsourcing market, India shall remain the top nation in terms of providing both on-shore and off -shore IT services across the globe generating massive employment.
The quality and cost of services shall be the two most important factors making India the IT powerhouse in the global IT services market.
Infrastructure
A rapidly growing economy, increasing urbanisation, and a government dedicated to bolstering the infrastructure of the nation- The sector currently employs 44 million people and contributes 9% to India’s GDP.
India needs about $ 1.5 trillion investment in the infrastructure sector in the next 10 years. India will be required to spend $ 454.8 billion on infrastructure development over the period of five years (2015- 2020) with 70 per cent of funds needed for roads and urban infrastructure segments.
India is expected to become the 3rd largest construction market globally by 2022 and CAGR of 15.7 per cent expected to reach $738.55 bn by 2022. The real estate sector is estimated to grow to $ 650 billion by 2025 and surpass $ 850 billion by 2028 to touch $ 1 trillion by 2030.
Renewable Energy
The Government is also committed to Clean Energy and is driving efforts to achieve 40% power installed capacity from non-fossil-fuel-based energy resources and reducing emissions by33-35% of its GDP by 2030.
The share of coal in the energy mix projected to fall to 50 per cent by 2040, while the share of renewables rises significantly. Renewables will overtake gas and then oil by 2020 as the second largest source of energy production.
The 4th largest installed capacity of wind power in the world, The 6th largest installed capacity of solar power and 70 GW installed renewable energy capacity (as of July 2018) and 34 new solar parks of capacity 20,000 MW sanctioned 60 solar cities approved and $1.3 billion allocated for setting up 50 solar parks of 40 GW by 2020
Entrepreneurship
The startup ecosystem in India is seeing an all time high with more new entrepreneurs entering the system, budding angel investors, variety of Incubators & Accelerators and venture capital firms, both domestic and global, betting on India’s 10 trillion dollar market.
Financial year 2017 saw an investment of $ 13.7 billion across 820 deals. The first quarter of 2018 has seen investment worth $ 2.2 billion. According to Niti Ayog, India is expected to have about 1 lakh startups by 2026 with an investment of approximately $ 400-$ 500 billion.