India is a country that has been attracting the attention of investors and businesses around the world for its impressive growth and potential. But what makes India different from other emerging markets is its ability to become a global superpower by 2031, surpassing some of the most developed economies in the world.
In this article, we will explore how India is poised to achieve this feat thanks to three megatrends that are transforming its economy and society: global offshoring, digitalization and energy transition.
Global Offshoring: India as the Back Office to the World
Global offshoring is the trend of companies outsourcing their services and processes to India, which has a large pool of skilled and English-speaking workers. India has been a leader in this field since the early days of the internet, but the Covid-19 pandemic has accelerated the demand for remote work and increased the cost advantage of India over other countries.
According to a research report, the number of people employed in India for jobs outside the country will double to more than 11 million by 2030, and that global spending on outsourcing will grow from $180 billion per year to around $500 billion by then.
This means that India will become the preferred destination for companies that want to save costs, access talent and improve efficiency. India will also benefit from the spillover effects of offshoring, such as higher wages, better infrastructure, more innovation and greater integration with the global economy.
Digitalization: India’s Technology Revolution
Digitalization is another key driver of India’s growth, as the country has made significant investments in technology and innovation. India has the second-largest internet user base in the world, with more than 800 million users, and the largest number of smartphone users, with more than 700 million devices. The government has also launched several initiatives to promote digital payments, e-commerce, online education, health care and governance.
These efforts have boosted productivity, efficiency and inclusion in the economy, and have created new opportunities for entrepreneurs and consumers. According to another research report, India’s digital economy will grow from $200 billion today to $1 trillion by 2025.
This means that India will become one of the most dynamic and diverse markets in the world, with millions of people accessing goods and services online. India will also become a hub for innovation and startups, as well as a leader in emerging technologies such as artificial intelligence, blockchain and cloud computing.
Energy Transition: India’s Green Future
Energy transition is the third megatrend that will shape India’s future, as the country shifts from fossil fuels to renewable sources of energy. India is one of the largest consumers and importers of oil and coal in the world, which exposes it to volatility in prices and supply. However, India also has abundant potential for solar, wind and hydro power, which can reduce its dependence on imports and lower its carbon footprint.
The government has set ambitious targets to increase the share of renewable energy in its electricity mix from 23% today to 40% by 2030. This will also create new jobs and industries in the green sector.
This means that India will become one of the most responsible and sustainable economies in the world, with a low-carbon and high-growth model. India will also contribute to the global fight against climate change and enhance its energy security and independence.
Conclusion: India’s Rise as a Global Superpower
These three megatrends will have a profound impact on India’s economy and society, as well as its role in the world order. According to another research report, India’s GDP will more than double from $3.5 trillion today to surpass $7.5 trillion by 2031. Its share of global exports will also double over that period, while its stock market will deliver 11% annual growth, reaching a market capitalization of $10 trillion by the end of this decade. This will make India the third-largest economy and stock market in the world, behind only China and the U.S.
India’s rise as a global superpower will also bring challenges and responsibilities, such as managing its relations with its neighbors and allies, ensuring social stability and equity, addressing environmental issues and maintaining fiscal discipline. However, if India can overcome these hurdles and leverage its strengths, it will be a force to reckon with in the coming years.
If you are interested in learning more about India’s economic boom and how you can invest in it, contact us today. We are experts in providing financial advice and solutions for investors who want to tap into this exciting opportunity.