India has become the world’s fastest‑growing major economy, with real GDP expanding at about 6.5‑7.5 % since the early 1990s. Its per‑capita income remains low, at roughly $2,800, and its share of global GDP is only 3 %. While services – especially IT, finance and professional services – drive growth, manufacturing accounts for a small share of GDP and exports. High tariffs, a complex regulatory environment and low foreign‑direct investment constrain manufacturing. The government has cut tariffs on smartphone parts, simplified taxes through the GST, and increased digital and physical infrastructure spending. The rise of generative AI could disrupt outsourcing but also create demand for India’s large STEM workforce. Overall, India seeks high‑income status by 2047 but faces significant domestic and external hurdles.
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