In its latest report titled ‘Outlook on Emerging Markets,’ global financial services firm Lazard has acknowledged India’s rapid economic growth and ongoing efforts to position itself as a global manufacturing hub. The report highlights India’s demographic dividend, noting that nearly 80% of its population is under the age of 50, a factor that is expected to drive growth until 2060.
The report states, ‘With a young and growing labour force and a rising middle class experiencing real wage growth, India benefits from a demographic dividend tailwind, and the country is projected to grow quickly until the 2060s.’ It also commends the reforms undertaken during Prime Minister Narendra Modi’s first two terms, which have stabilized the macroeconomy, integrated millions into the digital economy, and implemented crucial tax and other reforms.
As India aims to become a developed country by 2047, a goal reiterated by PM Modi for his third term, the report emphasizes the ongoing challenges in the education and agriculture sectors that need to be addressed.
The Union Budget 2024-25 reflects the government’s focus on strengthening the manufacturing sector. Finance Minister Nirmala Sitharaman, in her budget speech, announced significant measures to support Micro, Small, and Medium Enterprises (MSMEs) and labour-intensive manufacturing. The budget includes an increase in the limit for Mudra loans from Rs 10 lakh to Rs 20 lakh, along with financial support for establishing 50 multi-product food irradiation units in the MSME sector. Additionally, the government will facilitate a range of services aimed at employment and skilling for the labour force.
These initiatives are part of India’s broader strategy to boost its manufacturing capabilities and sustain its economic growth trajectory in the coming decades.
