India to Contribute 30% of Global GDP by 2040: Focus on ‘Champion States’ Growing at 11% per Annum, says Amitabh Kant

A Vision for the Future

India is on track to play a pivotal role in the global economy, with projections indicating that the country will contribute 30% of the global GDP between 2035 and 2040. This ambitious forecast was presented by Amitabh Kant, G20 Sherpa for India, during his address at the Confederation of Indian Industry (CII) Business Summit 2024 in New Delhi on May 18.

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Structural Reforms and Economic Growth

Kant highlighted the significant structural reforms undertaken by India, transforming it from a member of the "fragile five" to one of the top five global economies. Over the last three quarters, India has maintained a robust growth rate of approximately 8.4%. Kant confidently projected that by 2027, India would surpass both Germany and Japan in terms of economic growth.

Champion States: Engines of Growth

To sustain and accelerate this growth trajectory, Kant emphasized the need for the government to collaborate closely with states. He proposed the development of 12-13 'champion states,' each achieving annual growth rates of 10-11%. This state-level focus is crucial, as regional growth will collectively drive national prosperity.

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Global Ambitions and Private Sector Participation

Addressing the audience, Kant urged Indian companies to adopt a global mindset to penetrate international markets. He outlined several strategic priorities for the private sector, including:

Scaling Manufacturing: Enhancing the size and scale of manufacturing operations.

Championing Sunrise Sectors: Focusing on emerging areas of growth.

Global Market Penetration: Increasing exports and global market presence.

Artificial Intelligence Integration: Leveraging AI across various sectors.

Green Energy Transition: Committing to clean energy solutions.

Quality and R&D: Emphasizing quality and investing in research and development.

Electric Vehicle Revolution

Kant also addressed the urgent need to expedite the adoption of electric vehicles (EVs) in India. He highlighted the government’s allocation of ₹57,613 crore for procuring 10,000 electric buses, emphasizing the disruption in the automotive industry due to the global shift towards sustainable transportation.

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Production Linked Incentive (PLI) Scheme

The PLI scheme plays a pivotal role in this transformation. Kant pointed out that the scheme's acceleration will boost the manufacturing of electric two-wheelers, three-wheelers, and buses. He predicted significant advancements in battery manufacturing, with major companies like Tata, Reliance, Maruti, and Exide poised to lead this sector.

 

Conclusion

In conclusion, Amitabh Kant's address at the CII Business Summit 2024 painted a picture of an ambitious and dynamic India, ready to make substantial contributions to the global economy. With strategic focus on state-level growth, private sector innovation, and sustainable practices, India is well on its way to becoming a dominant economic force by 2040

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