India is presently the fifth-largest economy in the world, with a GDP of $3.89 trillion at current prices, growing at a rate of 8.2 % in FY23/24. The Indian economy showed remarkable resilience in 2024, characterised by strong GDP growth, substantial foreign exchange reserves, and record levels of foreign direct investment (FDI) inflows.
It is also presently the third-largest economy in the world in terms of GDP based on purchasing power parity (PPP) with a GDP size of 16.02 trillion USD, as per the IMF’s recent data, trailing behind China and the US. The World Bank projected that India’s growth will reach 7 % in FY 2024-25 and remain robust in FY 2025-26 and FY 2026-27.
India’s performance across several economic indexes in 2024 presents a complex narrative of progress intertwined with challenges. The following table shows India’s performance across the key global economic indexes for 2024. As per Savills Research, four Indian cities have been recognized as the fastest-developing cities, with Bengaluru identified as the fastest-developing city globally, followed by Delhi, Hyderabad, and Mumbai, which are also in the top five rising wealth creation and billionaires in India.
India is experiencing a surge in wealth creation, boasting a collective billionaire wealth of approximately US$ 1 trillion, accounting for 7% of the world’s total wealth, leading to Mumbai recently surpassing Beijing as the ‘Billionaire Capital’ of the world. The UBS Global Wealth Report 2024 highlights India’s promising outlook, ranking it 11th among countries with the fastest-growing millionaire populations, with an anticipated growth rate of 22% over the next five years.
As the Indian economy is driven by its skilled workforce, this year, its employment landscape has witnessed a historic shift, witnessing a total of seven crore job applications, which is a 25 % year-on-year surge, according to a recent report.
Despite this, India’s employment-to-population ratio stands at 52.8%, accompanied by a labour dependency ratio of 1.52, indicating that a portion of the population remains outside the labour force. ILOSAT highlights that the labour productivity in India, in terms of GDP per hour worked, is also quite low, estimated at $8, leading India to stand at 133rd globally.
This is because an average Indian worker works 46.7 hours each week, with 51 % of India’s workforce working 49 or more hours each week, ranking India second among countries with the highest rates of working hours, according to the International Labour Organisation. With India continuing to position itself as a significant global superpower in the coming years, focusing on its growth while addressing these challenges will be crucial for sustaining its economic momentum and enhancing overall living standards for its population.
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