How India Became a Global Powerhouse in Just a Decade

Author

Tejas Lakhani
August 31, 2023 • Estimated Reading Time: 5 minutes

How India Became a Global Powerhouse in Just a Decade?

“Policy paralysis” was the talk of the town in 2012-13.

From Policy Paralysis to Global Powerhouse, we witnessed the euphoria of the Modi wave election in 2014, the slowdown in 2018, the rebound just prior to Covid, the draconian lockdown of Covid, revenge spending post lockdown, and now again the talks of US interest rate hike, US banks’ bankruptcies etc.

India is a country of opportunities and potential, as it has emerged as one of the fastest growing economies and influential players in the world. In this article, we will explore how India achieved this remarkable transformation in just a decade, by looking at five key factors that contributed to its success:

  • Internet consumption

  • Per-capita income increasing

  • Strong Industrial and Infrastructure Base

  • Strong agriculture base

  • Young population

Internet Consumption: A Digital Revolution

India’s internet consumption

Frequency of usage

There are almost 80 crore people who are using the internet and almost using it daily. They are using it for social media, bill payment, online transactions etc.

Per Capita Income Increase: A Rising Middle Class

India’s per person income is at the same level as China was in 2006-07

India’s current per person annual income is almost similar to what China had in 2006-07. We all saw how China progressed during this decade.

Strong Industrial and Infrastructure Base: A Manufacturing Hub

Where does India stand in terms of industrial base?

India is leading in the following industries:

  • 2nd largest in Steel production

  • 2nd largest in Cement capacity

  • Largest in two wheeler production

  • 4th largest in four wheeler production

  • 2nd largest in real estate construction

  • 3rd largest in electricity production

  • 2nd largest in wireless phone subscriber

Where does India stand in terms of infrastructure base?

India is also leading in infrastructure base

  • 2nd largest in coal production

  • 4th largest in iron ore production

  • 3rd largest in aviation passenger traffic

  • 4th largest in railways network

  • 2nd largest in roadways network

  • 2nd largest in textile production

Strong Agriculture Base

Where does India stand in agriculture?

India has been the country of agriculture and farming, and rightly so:

  • 2nd largest in food grain production

  • Largest in milk production

  • Largest in cotton production

  • 2nd largest in horticulture

  • 2nd largest in sugar production

  • Larges in spices exports

  • Largest in cropland

  • Largest in livestock

Young Population: A Demographic Dividend

How the demography is mapped for each country

India’s median age in 28.7 years. That means more than 50% of the people are working age group and they will be in the working age group for the next 30 years at least.

India has come a long way from being a country plagued by policy paralysis and economic slowdown to being a country that leads global growth and innovation. It has achieved this feat by leveraging its strengths in internet consumption, per capita income, industrial and infrastructure base, agriculture base, and young population. These factors have enabled India to overcome its challenges and seize its opportunities in the 21st century. India is not only a global powerhouse, but also a global inspiration for other developing countries that aspire to achieve similar success. This presents the opportunity to be in the right investment at the right time.

Real estate may or may not see prices rise but companies that make good profits continue to rise. We want you to participate in this via mutual fund schemes. Let’s connect via email to discuss this in detail.

Warm regards
Tejas Lakhani
Chartered Accountant
Ex-PwC, Ex-ACC