India is now a major and important global player not just ‘rising’ anymore. In the past 4 decades, India recorded strong economic growth, making it the third largest purchasing power parity economy in the world (PPP). Speedy growth will resume following the pandemic. The Indian economy has a projected growth of 5.8 percent annually, which is faster than the global average and the Asia-Pacific average, from 2021–2040.
Recovery in early 2020 swiftly
In 2021, the economy in India will grow by 12.6%. In 2021, India will therefore be the only major country with double digit growth.
The Indian economy is one of the worst-affected by the pandemic, resulting in tight lock- downs for several months. In 2020, household earnings and business confidence declined by 10.3 per cent in GDP. However, the expansive vaccine deployment, decreasing COVID-19 sales figures and extensive economic stimulation are contributing to rapid economic growth in 2012.
Dual-digit growth in FDI fuels
The influx of FDI into India grew 13% by 2020, despite the COVID-19 crisis. This is an extraordinary achievement – and a historically difficult development for foreign investors in a country.
With rapid investments coming into circulation, India is one of the few nations with double- digit FDI growth in 2020. It means that India is now one of FDI’s top 10 destinations and announces a shift in global investment sentiment.
Multinational corporations are trying to move supply chains into the subcontinent. The main driving force is young and competitive employees, especially in the fields of IT and construction.
In contrast to the global picture, the FDI flows into India. For instance, FDI flows decreased by 42% globally. FDI flows to advanced economies have fallen by 69%.
Indian investment is expected to increase substantially in the next decade.
Consumer demand is surging.
The fastest-growing revolution is the emergence of a massive, diverse, and wealthy consumer market. Despite the pandemic’s effects, domestic demand, which accounts for 60% of the GDP, is expected to be a primary engine of recovery and development over the coming decade. As the number of people using smartphones grows, so does e-commerce.
India currently has over a billion internet users, and the digital economy is expected to contribute 15–20 percent of GDP by 2024.
A large, highly skilled Indian diaspora in Australia, estimated to number 1.4 million by 2031, is fuelling consumer demand trends.
Incomes are also increasing. By 2025, India’s median household income is predicted to reach A$13,867. According to the World Economic Forum, consumer spending in India will increase by a factor of four by 2030.
This means that by 2030, over 80% of Indian homes will be middle-income, an increase of 140 million people. Another 20 million people will be classified as having a high income.
Premium food and beverage, healthy lifestyle items, technical infrastructure, quality healthcare and education, entertainment, and consumer goods are all priorities for India’s growing and aspiring middle class.
A large, highly skilled Indian diaspora in Australia, estimated to number 1.4 million by 2031, is fuelling consumer demand trends.
Exporters and investors in Australia will have more opportunities in the future.
Education, mining and resources, infrastructure, agri-food, and digital services are among the industries where Australian firms continue to perceive potential. Australia is already a trusted supplier and investor, thanks to the consistent success of some great Australian firms.
India, on the other hand, continues to be a difficult location to do business. Expansion necessitates a high level of industry knowledge and hands-on expertise. Local partners can assist exporters and investors in navigating markets and regulations, and these relationships can be quite beneficial.
Despite this, India’s government has stated that it is “open for business.” It emphasises investment and competitiveness as characteristics that will help the economy recover and develop again.
The repercussions are already visible in worldwide rankings. In recent years, India has risen 63 places in the World Bank’s “ease of doing business” rankings.
