India is entering a phase where incomes will be compounding at a fast rate on a high base. For context, India took 31 years since 1991 to raise its GDP by $3tn. According to our projections, it will take just another seven years for GDP to grow by an additional $3tn.
India’s working-age population is still growing, which suggests that it will have a longer growth runway. India’s median age today is 11 years younger than China’s. India’s real GDP growth will average 6.5 percent over the coming decade while China’s will average 3.6 percent.
India is set to drive a fifth of global growth in the coming decade. This offers a compelling opportunity for multinationals and global investors in a world starved of growth.