India is on track to add an astonishing $1 trillion to its GDP every 18 months over the next six years, signaling a remarkable economic transformation, as outlined in a recent report by IDBI Capital. This ambitious growth trajectory positions India to become the world’s third-largest economy by 2030, with a target of reaching a $10 trillion GDP by 2032.

Manufacturing Sector to Drive Growth

The report emphasizes that the manufacturing sector will play a crucial role in this accelerated expansion, contributing an estimated 32% to the incremental Gross Value Added (GVA). Initiatives like “Make in India” are expected to significantly enhance the country’s manufacturing capabilities, positioning India as a key player in the global manufacturing landscape.

Historical Context of Rapid Growth

India’s economic evolution has been swift; it took 63 years to reach a GDP of $1 trillion from 1947 to 2010. However, the country achieved $2 trillion by 2017 and $3 trillion by 2020, showcasing a remarkable uptick in growth. Although the COVID-19 pandemic caused some delays—pushing the timeline for reaching a $4 trillion GDP to late 2024—India is now set for robust growth in the years ahead.

Forecasts for the Future

Between 2024 and 2032, India is projected to reach a $10 trillion GDP, driven by strong demand in manufacturing, a burgeoning export potential, and supportive government policies like the Production Linked Incentive (PLI) schemes. The report also anticipates that India will surpass major economies, including the US, China, Germany, South Korea, and Japan, in the Industrial Production Index (IIP).

Export Potential on the Rise

According to the findings, India’s exports are expected to account for 25% of its GDP by 2030, potentially reaching $2 trillion. This marks a significant increase from $61 billion in 2000, with expectations of $776.7 billion by 2024.

Key Drivers of Economic Growth

Several factors are driving India’s manufacturing and export growth, including rising domestic demand due to increased disposable incomes, global supply chain realignment, substantial export potential, and a supportive financial environment. With both public and private capital expenditures on the rise, along with a favorable demographic dividend, India is strategically positioned to emerge as a global economic powerhouse.