It is undeniable that India is currently an attractive market for investors worldwide, boasting a high market value and rapid development and growth. This can be seen from the GDP growth statistics of India from 2010 to 2018, where the country experienced an average GDP growth rate of 7% per year (Source: countryeconomy.com). In 2018, India had a GDP value of over 2,957.72 billion USD, ranking 5th in the world, and it is projected that by 2050, India will have the 2nd largest GDP in the world. So what are the reasons that have led India to become a leader in the global economy? Terrabkk summarizes the factors that will enable India to become a leader in the future global economy as follows:

  1. India is the second most populous country in the world

                Currently, the most populous country in the world is China, with a population of 1,418,256,055, accounting for 18.41% of the world's population. This has resulted in China having the highest market value in the world. In contrast, India, which has the second-largest population in the world, stands at 1,363,416,218, making up 17.74% of the global population. The population difference is not significant, indicating a similar demand and purchasing power in the Indian market compared to China. This is another factor contributing to the rapid growth of India's GDP (Source: based on the latest United Nations estimates).

 

  1. Bangalore: The Silicon Valley of India, a hub for information technology and a gathering place for global outsourcing companies

                Bangalore, known as the Silicon Valley of India, is the economic zone for technology in India, home to leading technology companies both globally and within India, such as Biocon, the largest biotechnology company in India. Notably, Bangalore is also home to six unicorn startups valued at over 1 billion USD that have yet to be listed on the stock market, including OLA Cabs Application for car rentals and BYJU’S Application for educational resources, making this location attractive to investors from around the world.

  1. A workforce with world-class skills

                According to a survey by Knowledge Junction Facebook Page, it was revealed that 25% of doctors in America are Indian, 30% of personnel at NASA are Indian, 34% of employees at Microsoft are Indian, 28% of IBM (computer manufacturer) staff are Indian, 27% of Intel (computer manufacturer) personnel are Indian, and 32% of scientists in America are Indian.

                Additionally, many executives in global companies are either Indian or of Indian descent, such as Sundar Pichai, CEO of Google, Satya Nadella, former CEO of Microsoft, and Anshu Jain, CEO of Deutsche Bank. This indicates that Indians are a highly capable workforce in the global market, spread across the world. Just imagine if one day, these Indians return to do business in their own country, how rapidly India could develop.

  1. The "Make in India" policy aimed at reducing redundant business processes to attract foreign investment

                The main idea of this campaign is to change the image and attitude of the Indian bureaucracy, which has historically adhered to the License Raj system, where officials have the power to permit or deny private businesses. This has made doing business in India complicated and cumbersome. The new policy aims to create a partnership image with the private sector for investment in India, emphasizing support rather than permission. This includes reducing bureaucratic red tape and rolling out the red carpet for private enterprises by creating a conducive business environment. The government has established an organization called Invest India, a non-profit entity co-funded by the Indian government and the Federation of Indian Chambers of Commerce and Industry (FICCI). Importantly, the Indian government is also preparing to amend regulations related to foreign business operations in India, such as eliminating redundant licensing requirements, extending license durations from 1 year to 3 years, developing a one-stop online service (eBiz) for license applications, implementing a single tax system (GST), and increasing FDI in various sectors. This makes foreign investment processes streamlined, quick, and promptly addressed.

                Terrabkk believes that these four main factors may contribute to India's rise as a global economic leader. However, if anyone thinks there are other factors influencing India's ascent, please feel free to share your thoughts and knowledge for everyone to analyze and consider.