India's Next Trillion-Dollar Milestone Achievable in 2 Years, Says WEF Chief
India on Track to Achieve Next Trillion-Dollar Milestone in 2 Years
26 May 2023
India may achieve the next trillion-dollar milestone in its economy within the next two years, according to the President of the World Economic Forum.
The success of India's digitization efforts has led to the creation of 77,000 startups and a significant shift in the global startup landscape, with Indian entrepreneurs playing a crucial role.
India's digital transformation has propelled its economic growth, with the country now leading the world in data consumption and processing a substantial portion of global real-time payments.
In a recent address at a CII session in New Delhi, Borge Brende, President of the World Economic Forum, expressed optimism about India's economic growth, stating that the country may achieve the next trillion-dollar milestone within the next two years. This impressive feat is largely attributed to India's remarkable digitization journey, which serves as a global success story. Borge emphasized the importance of sustained investment in digital infrastructure, noting that the digital budget has increased by 25 percent from 2022 to 2023, further propelling India's economic growth.
The advent of digitization in India has not only revolutionized the economy but also fostered a thriving startup ecosystem. Borge highlighted that India's digitization efforts have resulted in the creation of 77,000 startups, many of which have achieved the prestigious status of being global unicorns. This shift in the global startup landscape is significant, as Indian entrepreneurs now play a pivotal role in shaping the technology-driven future, previously dominated by Silicon Valley. However, Borge cautioned that continued growth depends on maintaining an environment of predictable policies and reducing bureaucratic hurdles for investments.
Amitabh Kant, G20 Sherpa, further emphasized India's remarkable progress, declaring it as the fastest-growing economy in the world. Over the past seven years, India has achieved remarkable milestones, including the construction of 40 million houses, the creation of 110 million toilets, and the establishment of 230 million pipe-to-water connections. Notably, even during the challenging period of the COVID-19 pandemic, India demonstrated its resilience and capability by producing 2.5 billion COVID vaccines. Kant aptly stated that India accomplished in seven years what would have taken half a century under normal circumstances.
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India's digital transformation has played a pivotal role in driving its economic growth. Kant highlighted that India's data consumption rose from being 1/23rd in the world in 2016 to become the global leader. This impressive surge in data usage underscores the transformative power of digitalization and its direct influence on India's progress. Recognizing the significance of digital transformation, India has made it a priority within the G20 agenda. Kant emphasized that India currently processes 46 percent of the world's real-time payments, but there is room for further improvement in this domain.
As part of the G20's focus on sustainable development goals and the empowerment of women, India has taken proactive steps. Kant expressed the G20's commitment to fostering global economic growth while prioritizing sustainability. India's responsibility in tackling climate change was also acknowledged, with Kant emphasizing the nation's determination to lead the way in decarbonization. Despite not being a significant contributor to global carbon emissions, India recognizes the need to proactively address climate change concerns.
India's remarkable journey toward becoming a trillion-dollar economy within a span of a few years is a testament to the power of digital transformation. By embracing innovation, fostering a startup culture, and investing in digital infrastructure, India has positioned itself as a global force to be reckoned with. As the country continues to prioritize sustainable growth, it is poised to drive positive change and lead by example in areas such as climate action, while leveraging the potential of digital technologies to shape a brighter future.