India poised to be one of most powerful growth engines in 20 years: EY

India is well-placed to turn one of the most powerful growth engines over the next two decades, driven by fast digitalisation, information technology services, strong entrepreneurship and favourable demographics, according to a recent EY report.

India’s digital public infrastructure is a key force multiplier for this. Widespread adoption of digital platforms has significantly reduced the cost of doing business, improved efficiency and transparency, and accelerated the formalisation of the economy.

The country has a unique opportunity to become the ‘office of the world’ for global corporations, the report notes.

India is well-placed to turn one of the most powerful growth engines over the next two decades, driven by fast digitalisation, information technology services, strong entrepreneurship and favourable demographics, according to a recent EY report.
India’s digital public infrastructure is a key force multiplier for this, deepening financial inclusion and unlocking new business opportunities across sectors.

What began as a cost-arbitrage model has evolved into a high-value proposition, with India increasingly providing advanced digital engineering, consulting, product development and innovation-led services to multinational companies, it notes.

The digital infrastructure has also deepened financial inclusion and unlocked new business opportunities across sectors, giving India a distinct competitive advantage among large economies, it says.

The report projects a six-fold increase in per capita income by 2047 for a population of more than 1.7 billion, and that is expected to unleash an unprecedented consumer boom.

A young, expanding workforce combined with rising incomes is likely to make India one of the fastest-growing consumer markets globally.

Making domestic manufacturing globally competitive is seen as a strategic priority on the supply side.

Success in complex, high-value and emerging sectors would position India as a manufacturing hub serving both domestic and international markets, strengthening its role in global value chains.

The report sets a target of reducing logistics costs from the current 14-18 per cent of gross domestic product (GDP) to the global best practice level of around 8 per cent by 2030, which would significantly enhance competitiveness and productivity.

Fibre2Fashion News Desk (DS)