India needs 8-10% annual growth to be a developed economy by 2047: Bain & Company

India’s leaders believe that the country is poised to become a $30-trillion economy by 2047. While this may seem ambitious amid the current economic challenges, Bain & Company’s report, India @2047: Transforming India into a Tech-Driven Economy, suggests that reaching this goal is within reach.CompanyValueChange%ChangeAccording to the report, for India to achieve a gross domestic product (GDP) of between $23-35 trillion, it will need to sustain annual growth of 8-10%, enhance workforce productivity, and drive transformation in key sectors.Watch: India poised to become a $30 trillion economy by 2047, says Mansukh Mandaviya
Aiming for 8-10% growth per yearThe report states that to maintain an annual growth rate of 8-10%, there must be strategic investments across sectors like electronics, energy, automotive, and services, as well as rapid advancements in technology.Here are the scenarios for India’s growth journey till 2047:The services and manufacturing sectors will play a pivotal role in driving India’s growth over the coming decades. According to the India Brand Equity Foundation, the services sector dominates the economy, contributing over 50% to India’s GDP, while manufacturing lags behind at around 17%. This means that the country would have to let go of its over-reliance on services, while fostering its manufacturing sector to drive employment and faster economic growth.Also Read: India’s economy to grow at slowest pace in 4 years; manufacturing faces sharpest declineIndia’s demographic dividendIndia is expected to add nearly 200 million new workers to its labour force by 2047, the Bain & Company report highlights. This surge makes job creation a top priority, with a particular focus on boosting female workforce participation.Currently, women’s participation in the labour force stands at around 25%, the report estimates. It emphasises that raising this to 40-50% will be essential not only for driving economic growth but also for achieving greater gender equity. Addressing this gap will be key to make the most of India’s demographic dividend.Key sectors that deserve attentionIndia’s economic transformation will largely depend on five key sectors: Electronics, energy, chemicals, automotive, and services, according to the Bain & Company report.These sectors, poised to lead India’s growth, will require structural reforms, technological modernisation, and increased investments to create jobs and generate wealth. As the economy diversifies, the report highlights that the services sector is expected to account for nearly 60% of India’s GDP, while manufacturing will drive much of the industrial growth.While India’s potential is significant, several challenges remain. The report says escalating geopolitical turbulence, rising financial constraints, and the accelerating effects of climate change could impact the country’s growth trajectory. Structural reforms across various sectors, including labour and technology, will be crucial in mitigating these risks and ensuring long-term, sustainable growth.

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