Narendra Modi: $ 5 trillion India: an opportunity on the world stage

The global significance of India is nothing new. It has entered unknown areas in recent years, thanks to government initiatives and the unprecedented growth of the private sector. As part of this momentum, Prime Minister Narendra Modi has set a goal of saving $ 5 trillion for India by 2025.

Achieving this vision will require an annual growth rate of 9.25% over current GDP of $ 2.9 trillion, which, given today's reality, is an obvious stretch. Regardless of future growth trends, assuming that India grows at 6% -plus, it is poised to become a $ 5 trillion economy between 2025 and 2028.

For India to realize this potential in its own development and the contribution it makes to the world economy, there must be a unified effort to innovate, encourage and boost GDP growth in India. # 39; India. We see four areas of intervention at the heart of this growth.

UNLEASH THE POTENTIAL OF SAVING SERVICES

India’s services economy accounts for 53.9% of GDP. Despite this huge share, India is witnessing an unorganized workforce of 450 million people, as well as fragmented and localized markets that have continued to operate on a smaller scale. While India generates a large skilled workforce, skills mismatch continues to be an obstacle. Long-term success will depend on building a workforce ready for the future, with skills mechanisms capable of keeping pace with change. The creation of an ecosystem of jobs and skills at the national level will generate a virtuous cycle of matching jobs and skills adapted to demand to fuel the growth of a service economy that can contribute between $ 3 billion and $ 3.5 billion (out of $ 5 trillion) to India's GDP.

PARTICIPATE IN GLOBAL SUPPLY CHAINS

To become an industrial power, India must continue to use the commercial arsenal. Compared to a global trade intensity (share of trade in overall GDP) of around 58%, sources indicate the contribution of India's trade as a percentage of GDP to around 41%. From an export perspective, the manufacturing sector is the lever that can increase trade in physical goods in India, leading to the next wave of growth. Exporting goods at different stages in a product’s life cycle will strengthen India’s export profile and expand its trading partners worldwide.

MAKE INDIA AN ATTRACTIVE INVESTMENT DESTINATION

If the focus is on improving India's Ease of Doing Business (EoDB) and Business Cost Score (CoDB) is well placed, a crucial determinant of Investment-led growth also addresses the risk of doing business in the country (RoDB). Comprising a legal and regulatory regime, political stability and security, RoDB is a primary consideration for international investors. Reducing India's RoDB through reforms to bring certainty and stability to public policy and the regulatory framework will make India a more favorable destination for investment.

MAINTAINING THE SCENE OF THE FUNDAMENTAL CENTER

As India continues to grow, building an inclusive and sustainable economy that stimulates broad-based growth will remain essential. India must focus on the pillars of development and infrastructure, including sanitation, electricity, clean water, electricity, hygiene, sanitation security and housing. Sources indicate that maternal mortality is 57 times higher than in the United States; and India ranks 133/167 in women's safety.

While India’s rise on the world stage is inevitable, these development indicators need to be addressed. India will also need to foster greater adoption of energy efficient processes, the energy transition (including renewable energy); alongside increasing forest cover and other natural carbon sinks to mitigate emissions and create healthier and more sustainable living spaces for its residents.

Ultimately, India will need all of its demographics to be healthy, educated and secure for the nation to realize its true potential and growth as a turbocharger.

Despite sour sentiment from consumers in recent months, long term prospects continue to shine for India, Inc. Investor interest and appetite are promising as long term commitment towards the growth of India remains unchanged.

Rich Lesser is Managing Director, BCG, and Alpesh Shah is Managing Partner, India, BCG. Lesser will speak at the Global Business Summit 2020 in New Delhi on March 6.