India is undergoing rapid economic growth and aiming to establish itself as a global manufacturing hub, according to a report by Lazard. The report highlights India’s strong demographic advantage, featuring a growing labor force and a rising middle class, as well as Prime Minister Narendra Modi’s commitment to making India a developed country by 2047.
India has sustained its position as the fastest-growing economy and is actively working to become a global manufacturing center, as noted by the global financial services firm Lazard.
In its latest report, “Outlook on Emerging Markets,” Lazard acknowledges India’s robust demographic dividend. It suggests that the country will benefit from its youthful population, driving economic growth until 2060.
“With a young and expanding labor force—nearly 80% of the population is under the age of 50—and a rising middle class experiencing real wage growth, India has a demographic advantage that will support rapid growth until the 2060s,” the report states.
The report also highlights, “During his first two terms, Modi’s government has stabilized India’s macroeconomy, integrated millions into the digital economy, and implemented significant tax and other reforms.”
Additionally, the report emphasizes that Prime Minister Modi’s goal of transforming India into a developed nation by 2047 will be a key focus of his third term.
However, the report also points out that India still faces considerable challenges in the education and agriculture sectors.
India’s efforts to bolster its manufacturing sector are evident in the Union Budget 2024-25. During her budget speech, Finance Minister Nirmala Sitharaman highlighted the budget’s special focus on MSMEs and manufacturing, particularly labor-intensive manufacturing.
To support the manufacturing sector, the budget increased the limit for Mudra loans from Rs 10 lakh to Rs 20 lakh. The government also plans to provide financial support for the establishment of 50 multi-product food irradiation units within the MSME sector. Additionally, the government will facilitate a wide range of services for labor, including employment and skill development, as announced in the Union Budget 2024-25.