India stands out as one of the most attractive investment destinations in the world given its favourable demographics, a large consumer base, digitalisation and a supportive government policy framework.
The Indian economy was in many ways an outlier in financial year 2023-24. It grew at 8.2 per cent compared to a global GDP growth of 3.2 per cent. On the whole the Indian economy has been one of the fastest growing large economies with an average growth of 8.3 per cent in the last three years.
India is expected to be one of the fastest growing economies in the world in financial year 2024-25 as well. The economy is expected to grow at 7.2 per cent in FY25 as per RBI data.
India is a young country, with more than 65 per cent of the population under 35 years old. This advantage is a major incentive for businesses to invest in India.
This year, the Union Budget’s focus was on employment and skill formation. With an emphasis on labour intensive production, skilling initiative, incentivising formal job creation and increasing participation of women in the workforce, the government wants to reap the benefit of India’s demographic dividend.
Moreover, the benefits from government reforms and support measures over the last few years, like the Production Linked Incentive (PLI) schemes, are likely to boost manufacturing activity and attract FDI flows. India is in a good place for economic growth and well placed to capitalise on the positive environment.
India is well placed to play a critical role in shaping the future of the global economy. Despite global headwinds, the resilience and momentum shown by the domestic economy in recent years suggest that it is well-equipped to navigate any potential problems. India remains the fastest-growing major economy and is moving towards becoming a $5 trillion economy by 2027-2028.
