India is poised to take a historic leap, projected to become the world’s third-largest economy by 2040, driven by four transformative forces: Development, Diversification, Digitalisation, and Decarbonisation. These forces will guide India’s exceptional growth, enabling it to become a developed economy and a resilient, future-ready nation.
The country’s economy is expected to expand at an average annual rate of 6.7% between 2025 and 2040, positioning it to surpass $10 trillion in GDP with the possibility of increasing growth above 7% if trade and capital perform strongly.
Maintaining primary focus on capital formation, human capital investment, and productivity growth, including a working-age population of more than 900 million by 2040. There is a significant need to strengthen human capital through education, health and skill development to increase employment and productivity.
Additionally, public investment plays a major role, particularly in infrastructure. According to the World Bank, India needs at least $2.4 trillion in Urban area development. Flagship initiatives, such as Gati Shakti, the National Infrastructure Pipeline, and the National Logistics Policy, are forecasted to accelerate long-term productivity gains and create employment opportunities across various sectors.
