The ASSOCHAM-Egrow report has projected that India’s economic transformation by 2047 will be driven by the manufacturing and services sectors, which are expected to employ 67% of the workforce and contribute 75% of the country’s GDP. This shift underscores India’s continued transition toward a service- and manufacturing-led economy, moving away from its traditional reliance on agriculture.
According to the report, India’s nominal GDP is forecasted to surge from $3.5 trillion in 2023 to $22.8 trillion by 2047, with an annual growth rate of 7.5%. The services sector is set to dominate, increasing its GDP share from 54.2% in 2023 to 60% in 2047. Manufacturing will see modest growth, accounting for 18% of GDP, while agriculture’s contribution is expected to decline sharply to 10%, reflecting the ongoing structural transformation of the economy.
Employment patterns will mirror this shift. By 2047, the services sector is expected to employ 52.3% of the workforce, compared to just 24.3% in 2000. Manufacturing employment will also rise, growing from 10.9% in 2023 to 15% in 2047. Conversely, agriculture’s share of employment is projected to drop dramatically, from 59.4% in 2000 to 22%.
The report highlights immense opportunities for growth in the MSME (Micro, Small, and Medium Enterprises) sector, which currently contributes 30% to GDP and 45% to exports. With a push toward formalisation, technology adoption, and productivity enhancement, MSMEs are poised to play a vital role in India’s economic expansion.
Foreign Direct Investment (FDI) is expected to be a cornerstone of this transformation, with the government prioritizing gross fixed capital investment and fostering business-friendly policies to attract foreign investors. These efforts aim to bolster high-tech manufacturing, exports, and the services industry.
The report emphasizes the need for significant investment in skill development to prepare India’s vast labour pool, which is projected to reach 76.9 crore by 2047. With a working-age population of 118.4 crore, businesses are encouraged to take an active role in training and upskilling initiatives to equip workers for emerging opportunities in technology-driven industries.
As India progresses toward its goal of achieving a per capita income of USD 14,000 by 2047, the path ahead involves balancing economic growth with inclusivity and sustainability.
(Inputs from ANI)
