India on Path to Become Global Economic Superpower

India is accelerating towards achieving global economic superpower status driven by ambitious government initiatives such as the production-linked incentive (PLI) schemes, robust local manufacturing growth, and a resilient GDP expansion trajectory.

Under the leadership of Prime Minister Narendra Modi, India has embarked on a transformative journey over the past decade, marked by significant advancements in local manufacturing, establishment of semiconductor plants, advancements in AI and 5G technologies, and a thriving startup ecosystem supported by innovative PLI schemes across various sectors. These efforts have not only bolstered economic growth but also catalyzed job creation and skills development on a massive scale.

The impact of the PLI scheme has been profound, with the manufacturing sector projected to expand threefold, reaching an impressive market size of $1.66 trillion by FY34, up from $459 billion in FY24. This growth trajectory exceeds the average increase of $175 billion witnessed over the last decade. According to a recent report by DSP Mutual Fund, the manufacturing sector's contribution to GDP is anticipated to rise from 14% in FY24 to 21% by FY34, driven by enhanced infrastructure and reduced logistics costs. Investments in infrastructure are also set to rise significantly, from 33% of GDP in FY24 to 36% by FY29.

The electronics manufacturing sector alone has seen remarkable progress, creating over 12 lakh new jobs and surpassing the $100 billion mark. It is poised to reach $250 billion within the next five years. The PLI schemes across 14 sectors are expected to attract investments ranging from Rs 3 lakh crore to Rs 4 lakh crore in the coming years, further boosting industrial growth and employment opportunities.

Addressing the Parliament, President Droupadi Murmu highlighted the rapid pace of reforms aimed at fulfilling India's developmental aspirations. She noted that India has ascended to become the world's fifth-largest economy from its previous eleventh position. The country has sustained an average annual growth rate of 8% from 2021 to 2024, contributing significantly to global economic expansion.

President Murmu underscored that India currently accounts for 15% of global economic growth, reflecting its pivotal role in the world economy. Looking ahead, she emphasized that the next phase of development will focus on effective execution to consolidate India's position as a global economic powerhouse.