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Okonomos Preliminary Write Up

According to a McKinsey study, India is projected to become the fifth largest consumer economy by 2025 and may overtake several major economies by 2050 including Japan, the UK, Germany, and possibly the US. Currently, agriculture contributes 18% to India's GDP, industry 22%, and services 60%. While India is expected to experience vibrant economic growth, it faces significant challenges in improving quality of life as it still has the largest population of poor and highest rate of child malnutrition. Key issues India must address to enable inclusive growth include raising agricultural productivity, reforming labor laws, developing infrastructure, implementing a credible fiscal policy, and reducing corruption.

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16 views2 pages

Okonomos Preliminary Write Up

According to a McKinsey study, India is projected to become the fifth largest consumer economy by 2025 and may overtake several major economies by 2050 including Japan, the UK, Germany, and possibly the US. Currently, agriculture contributes 18% to India's GDP, industry 22%, and services 60%. While India is expected to experience vibrant economic growth, it faces significant challenges in improving quality of life as it still has the largest population of poor and highest rate of child malnutrition. Key issues India must address to enable inclusive growth include raising agricultural productivity, reforming labor laws, developing infrastructure, implementing a credible fiscal policy, and reducing corruption.

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abhinav_nitin4895
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IMT Nagpur –Milestone 35

Okonomos ,the Business and Economics Forum

Preliminary Round

India, Where art thou headed?


“The Indian market is likely to emerge emerge as the fifth-largest consuming nation in the
globe by 2025, according to a McKinsey study. By 2050, the Indian economy is expected to
overtake Japan, the UK, Germany and could even exceed the US economy in size!

The current USD 1.25 trillion of Indian GDP (2009) is contributed by agriculture (18%),
industry (22%) and services (60%).
Historical sectoral contributors to GDP are represented in the graph below
While the outlook for India’s economic growth is vibrant and optimistic, India does face
tremendous challenges too, especially in upgrading the quality of life of its population.
Despite the impressive economic growth over recent decades, India still contains the largest
concentration of poor people in the world and has a higher rate of malnutrition among
children under the age of three (46% in year 2007) than any other country in the world.
Growth has been uneven when comparing different social groups, economic groups,
geographic regions, and rural and urban areas.

Some of the key issues that India needs to address to stimulate all-round and inclusive growth
are: (1) raising productivity of the agricultural and rural sector; (2) changing restrictive and
complex labor laws which hinder industrial growth; (3) developing infrastructure; (4)
charting out a credible fiscal policy; and (5) improving governance, effective implementation
and reducing corruption in the political system. “

Where do you think India is headed and will it ever be able to overcome the
challenges it faces and grow competitively on all fronts?

How realistic are the economic forecasts being made for India and how easy
is it to implement the suggestions listed to stimulate inclusive growth?

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