India: A Land of Opportunities
Post-Pandemic Beacon of Stability & Sharpest Economic Turnaround
In the post-pandemic world, India has emerged as a beacon of stability and growth. The fastest-growing large economy, India saw the highest turnaround among large economies with GDP growth making a swift and sharp rebound, expanding by 8.7% in FY 2022.
Breached the USD 400 Bn mark for the first time in FY22 with a 45% jump, surpassing growth in Canada (31%), USA (28%), and China (24%).
While global services exports suffered severe pandemic impacts, India achieved its target of USD 250 Bn in FY 2021–22, registering 21.3% growth over the previous year.
1. In its 75th Year of Independence: Surpassing the UK to Rank 5th Globally
In its 75th year of Independence, India recently surpassed the United Kingdom to become the 5th largest economy in the world at USD 3.1 Trillion real GDP, climbing from the 11th position in 2014. While it took India 60 years to become a Trillion-dollar economy and another 7 years to reach the second Trillion, the pace and scale of transformation taking place in India is ensuring that subsequent milestones arrive with ever-shortening durations.
As per IMF estimates, the Indian economy is expected to jump another two trillion in less than 5 years to breach the USD 5.5 Trillion mark, surpassing Germany to become the 4th largest economy. With sustained momentum in real GDP growth, India is likely to become a USD 10 Trillion economy by 2030, firmly cementing its global position as an economic powerhouse.
2. Make in India for the World: Historic FDI & Industrial Schemes
India has been witnessing an unprecedented amount of capital flowing into the country from prominent investors worldwide, with FDI inflows growing consistently since 2014–15. As we celebrate 8 years of the launch of the ‘Make in India’ initiative, annual FDI inflows have reached a record USD 83.6 Billion. These investments have arrived from 101 countries across 57 sectors and 30 states, with nearly all states in the country receiving a share of FDI over the last year.
Capitalizing on the window presented by the pandemic, India has liberalized even its hitherto sensitive sectors such as defence, space, and mining. India today is one of the most open economies for FDI in the world, with most sectors open to 100% under the automatic route. With a revamped Viability Gap Funding (VGF) scheme boosting private investments in social infrastructure, there is tremendous scope for companies to expand investments in critical sectors such as health, education, and sports.
Production-Linked Incentive (PLI) Scheme (USD 26 Bn Package)
Introduced across 14 core manufacturing sectors – including electronics, pharmaceuticals, automotive, Advanced Chemistry Cell (ACC) batteries, solar PV modules, and white goods (home appliances).
- Expected fresh investment infusion: nearly USD 50 Billion
- Estimated production surge: ~USD 520 Billion over the next five years
- Multiplier effect: doubling employment and empowering MSME supplier networks
Semiconductor & Display Ecosystem (USD 10 Bn Scheme)
A dedicated USD 10 Billion incentive scheme launched to build a world-class semiconductor fabrication and display-design ecosystem in India.
Ensures globally competitive, cutting-edge technology products are engineered and manufactured as authentic ‘Made in India’ hardware.
Building on outcome-centered policy reforms and a massive domestic consumer base, India is now second only to China as a preferred manufacturing destination. Several new Free Trade Agreements (FTAs) – including agreements with the United Arab Emirates (UAE), Australia, Canada, and the European Union (EU) – are integrating India into global supply chains, unlocking a new window of opportunity to ‘Make in India’ and ‘Make for the World’.
3. Transforming India: EoDB Leap, Tax Rationalization & Institutional Governance
Dedicated government efforts enabled India to jump 79 places in the World Bank Ease of Doing Business (EoDB) rankings between 2014 and 2019, leaping from 142nd to 63rd position. With over 30,000 compliances already reduced or decriminalized, mission-mode initiatives are actively underway to break into the global top 50. Key structural interventions include:
Corporate tax slashed from 34% down to 15% for new manufacturing units. 29 complex central labour enactments consolidated into 4 streamlined Labour Codes providing hiring and retrenchment flexibility. Streamlined Intellectual Property Rights (IPR) regime.
GST created unified nationwide logistics and warehousing efficiencies. The Insolvency and Bankruptcy Code (IBC 2016) established smooth exit pathways, allowing institutional investors to acquire world-class distressed assets via time-bound liquidation processes.
RoDTEP Scheme and Custom Bonded Warehouse Scheme refund embedded exporter duties. One District One Product (ODOP) supports 700+ local products across all districts; District Export Hubs (DEH) have helped over 16 states attain record export figures.
Digital Institutional Handholding Platforms:
- Project Development Cells (PDCs): Operational across 29 central Ministries and Departments to handhold investors, monitored under an overarching Empowered Group of Secretaries (EGoS).
- National Single-Window System (NSWS): Soft-launched in September 2021, integrating Central and State clearance mechanisms into a unified digital portal to eliminate duplicate applications.
- India Industrial Land Bank (IILB): GIS-enabled interactive mapping portal allowing investors to view and select industrial land parcels across 4,500+ industrial parks nationwide.
Measurable Dividends of Focused Governance:
4. Infrastructure as a Pillar of Growth: PM Gati Shakti, NIP, NMP & Logistics
Another key pillar of the Hon’ble Prime Minister’s vision of an Atmanirbhar (self-reliant) ‘New India’ is holistic and sustainable infrastructure development. The multi-modal master plans currently driving development comprise:
National Infrastructure Master Plan coordinating 16 Ministries and States for synchronized execution across Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics.
Targets slashing domestic logistics costs from 14% of GDP to below 10% and elevating India into the top 25 nations in the World Bank Logistics Performance Index (LPI).
Identifies over USD 1.4 Trillion in investment opportunities across clean energy, drinking water, healthcare, modern rail hubs, airports, and world-class educational institutions for 1.4 billion citizens.
Unlocks private investments by recycling operational brownfield public assets with an aggregate estimated potential of USD 80 Billion.
A robust secondary market has emerged for Indian infrastructure assets. Global Sovereign Wealth Funds, Pension Funds, and Private Equity consortiums are actively acquiring National Highway concessions, airport assets, telecommunications towers, gas pipelines, and commercial real estate. Simultaneously, Infrastructure Investment Trusts (InvITs) have democratized access, allowing domestic retail investors to participate in infrastructure wealth generation.
5. Innovation Fuelling Growth: Patents, R&D Hubs & The Startup Ecosystem
India is rapidly transitioning into a top-tier global Innovation and R&D hub. In the Global Innovation Index (GII) 2022, India ascended to 40th rank, soaring 41 spots up from 81st position in 2015. Over the last 7 years, regulatory IPR reforms powered a remarkable 572% growth in patent grants, while patent filings surged by over 50%.
India hosts 27% of Asia’s New Innovation Centers, with 55+ global unicorns operating dedicated Indian R&D centers. R&D exports have more than doubled in three years, making India a net exporter of R&D across sunrise domains: AI, geospatial systems, drones, semiconductors, space economy, genomics, pharmaceuticals, green hydrogen, and clean mobility.
With over 1 billion mobile phone users, India boasts the highest per capita mobile data consumption globally – greater than the United States and China combined – up from rank 122 five years ago. Rural users generate 45% of total data consumption, while the broader Internet economy is headed toward USD 1 Trillion by 2030.
Startup India (Launched January 2016): World’s 3rd Largest Startup Ecosystem
6. The Digital Revolution: India Stack, JAM, UPI & ONDC Democratization
The India Opportunity story is anchored by the India Stack – an open API digital public infrastructure that enables presence-less, paperless, and cashless service delivery across governments, private enterprise, startups, and developers.
Jan Dhan: World’s largest financial inclusion program with 450+ Million accounts.
Aadhaar: World’s largest biometric system covering 99.7% of citizens.
Mobile: 920 Million Aadhaar numbers linked to 900 Million mobile devices, constituting the largest economic inclusion marketplace on Earth.
India’s fintech adoption rate is 23% higher than the global average. In August 2022 alone, Unified Payments Interface (UPI) processed 6.57 Billion transactions valued at ₹ 10.73 Trillion. Annual digital payment values will jump from USD 300 Bn in FY 2021 to USD 1 Trillion by FY 2026.
Democratizing E-Commerce via ONDC & Infrastructure Status for Data Centres:
The Open Network for Digital Commerce (ONDC) is a pioneer facilitator-driven, open-protocol decentralized network designed to eliminate platform monopolies and onboard local mom-and-pop stores and MSMEs onto digital commerce. ONDC is projected to increase e-commerce penetration from 10% of retail to 40–50%, driving a Gross Merchandise Value (GMV) of USD 48 Billion over the next five years.
Furthermore, granting Infrastructure Status to Data Centres in the Union Budget has unlocked preferential long-term credit, catalyzing hyperscale cloud and edge investments across India.
7. Vision 2047: Amrit Kaal & The Journey to a USD 30 Trillion Superpower
As India marches into the Amrit Kaal – the 25-year countdown to the centenary of Independence in 2047 – the blueprint for our long-term destiny is clearly defined. Guided by the principle of “Minimum Government, Maximum Governance”, India provides global industry with an unmatched proposition: one of the largest consumer markets, an open and democratic society, the world’s youngest workforce, simplified taxation, judicial strength, a free press, and stable, investor-friendly policy frameworks.
As the Hon’ble Prime Minister Narendra Modi declared: “Yehi samay hai, sahi samay hai” (Now is the time, the right time). Indeed, there has never been a more compelling opportunity to invest in India.
Today, India – represented by Invest India – proudly holds the Presidency of the World Association of Investment Promotion Agencies (WAIPA). As India hosts the World Congress of Accountants (WCOA 2022) for the very first time, this prestigious convention serves as an indispensable platform for fostering global collaborations, expanding industrial partnerships, and accelerating investments across the subcontinent. ■■■