India's trajectory towards becoming a developed economy is a widely discussed topic. Many target statistics have been quoted to drive home this point. We have taken a different approach by looking at the primary drivers shaping India's economic ascent in the next decade - and we believe some of these are unique to India.
1. Digital competitiveness
India has a strong digital advantage with its 900 million working-age population having affordable internet access at $2.5/month and 650 million smartphones, all running on the India Digital Stack. This has led to deeper inclusion and new demand for financial services, consumer goods, healthcare, and education. The unbanked population has reduced to under 20%, per capita data consumption is among the highest in the world at 17 GB and e-commerce is already at 7%.
India has an unparalleled base of technology skills. Technology services exports crossed $150 billion in FY22 and continue to be relevant in an ever-digitising world. There are 1,500 global capability centres in India, set up by many of the Fortune 500. With 5 million employees, the sector accounts for 40% of the global technology workforce. IT exports essentially pays for India's oil import bill.
With one of the fastest growing innovation ecosystems of the world, India has jumped 41 places on the Global Innovation Index to 40th in just 7 years. India's demographic and digital dividend is a key factor in this progress with a large, aspiring, digitally connected population and a growing number of young risk-taking entrepreneurs. India ranks 3rd in the world for number of start-ups and unicorns.
Read more at: https://economictimes.indiatimes.com/news/economy/indicators/unique-factors-at-work-to-ensure-india-becomes-3rd-largest-economy/articleshow/98131860.cms
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