scorecardresearch
India could contribute $500 bn to global economy by 2030: WEF-Kearney

India could contribute $500 bn to global economy by 2030: WEF-Kearney

A thriving manufacturing hub will also generate additional benefits and help India create economic opportunities for nearly 100 million people that are likely to enter the workforce in the coming decade, it said

India could become a manufacturing hub India could become a manufacturing hub

India has the potential to contribute $500 billion in annual economic impact to the global economy by 2030. A white paper titled ‘Shifting Global Value Chains: The India Opportunity’ by Kearney published in partnership with the World Economic Forum said that there has been a colossal shift within the manufacturing and supply chain across sectors paving the way for India to become a potential manufacturing hub.

“‘India has three key assets to capitalise on this unique opportunity: the significant domestic demand potential, the Indian Government’s drive to encourage manufacturing, and a distinct demographic edge with a large working age population,” stated the report. These will position India for a larger role in the global value chains.

A thriving manufacturing hub will also generate additional benefits and help India create economic opportunities for nearly 100 million people that are likely to enter the workforce in the coming decade. It will also ensure a more equitable wealth distribution, as well as contain its burgeoning trade deficit.

The white paper also laid down five possible paths to achieve the $500 billion goal:

  • Coordination between government and private sector to create globally competitive manufacturing companies
  • Focus on building capabilities through workforce skilling, innovation, quality, and sustainability
  • Reducing trade barriers to enable competitive global market access for Indian manufacturers
  • Reduce cost compliance and establish manufacturing capacities
  • Focusing infrastructure development on cost savings, speed, and flexibility

Viswanathan Rajendran, Partner at Kearney said, “A thriving manufacturing sector could potentially be the most critical building block for India’s economic growth and prosperity in the coming decade.”

“For India to become a global manufacturing hub, business and government leaders need to work together to understand ongoing disruptions and opportunities, and develop new strategies and approaches aimed at generating greater economic and social value,” said Francisco Betti, Head of Shaping the Future of Advanced Manufacturing and Production, World Economic Forum.

Also read: CSR spends in FY21 jump 3.62% to Rs 22,000 cr: CRISIL
Also read: Diagnostics companies to see 17-20% increase in revenues this fiscal: CRISIL