In a Populous Country Such as India, Economic Growth and GDP growth became Point of Discussion in Every Forum Now-a-Days. Several Economists, Industrialists, Intellectuals and Officials are Discussing about the Growth Targets and Some of their Opinions on Growth Prospectus. In this Management Insight, I Would Like to Touch Up on Some of My Observations and Ideas Related to How to Achieve GDP Growth in the Country. Some of these Aspects May help in Taking Economy towards the Upward Direction. Following are the Important Considerations Related to GDP growth.
Factors Which Can Contribute to GDP Growth:
- As on 2025, almost 50% of German GDP is coming from Exports. Similarly, 65% of Thailand GDP is coming from Exports; and Exports contribution to Singapore GDP is 186%. And In case of Indian Economy, Exports Contribute close to 12% to Indian GDP (i.e. $450 billion exports out of $4.2 trillion Indian GDP). Here there is lot of Potential, if India can bring Exports to 50% of GDP another $1.6 trillion economy can be added to Indian GDP, making Indian GDP to Cross $4.2 trillion + $1.6 trillion = $5.8 trillion. That way, we can hit $5 trillion mark.
- Because Export/Import business Contribution to Global GDP is 25%. India is hitting the Global Average of International Trade (Put together Exports and Imports) 25% out of its GDP. However, There is lot of Scope for Improving Exports.
- One of Potential Areas is, as on 2025, Many Electrical Vehicle Manufactures (both 2-wheeler and EV Car) came up with minimal Investments in Country. That means, they could setup manufacturing plants with minimal investments. Now the Market is Staggered and the Market Shares are Getting Evolved. This is the time, Indian Manufactures should start large scale Electrical Vehicle Exports to the world. Not only Finished Goods, Components like Electrical Batteries can be Exported in a large scale to the world. There is Scarcity of Long Run Batteries in the Global Market; Global Car Manufacturers are Looking for Suppliers in this sector. Global EV industry is growing at a Compound Annual Growth Rate of 13%.
- One more area having scope to Global Scale up from Indian Side is the Healthcare and Pharmaceutical Sector. As on 2025, Indian Healthcare Industry is worth $650 billion. Medical Devices Industry is worth around $250 billion. Global Healthcare Industry is worth $10 trillion as on 2025. Here There is Huge Market to scale up. Healthcare Services Industry has Very Much Success rate in India. This can become a Destination for Global Medical Help Seekers. Also As on 2025, Several Medical Implants are also being Manufactured in India, which can be Exported to Global Markets.
- Similarly, The Pharma Products and Vaccines can Keep Continue Exports and Global Sales can further be Scaled Up based on Success Stories here in India. If many Manufactures Enter into Implants Sector in India, Medical Implants Imports can be Avoided and Further Exports can be Grown from India.
- One more Aspect is Indian Software and Services Industry is Growing at a Compound Annual Growth rate of 11%; where as Indian Healthcare Industry is Growing at a Compound annual growth rate of 22% and India Electrical Vehicle industry is Growing at More than 20% Growth Rate. So, Entrepreneurship Should focus and High Growth Rate Industries and Large Global Market Size Industries Globally. This can Increase Exports from India.
- Gold Processing and Jewelry Exports is another Area, Indian Economy can focus for Exports Purpose. Because of the Jewelry Finishing, Handiworks of Indian Goldsmiths is world class, and these Labour hours can be Successfully commercialized profitably at Global Level. Another Many Established Players like Aditya Birla Group is also Entering into Jewelry Market with their Brand Indriya. Already Tata Group Tanishq is One among the Established Players in Jewelry Market in India, in addition to Malabar Gold, Selgo Retail, PC Jewelers.
- Further Services Exports such as Back Office Processing Services, Financial Services, Banking Services, Loan Services, Investment Services, Credit Card Services of Global Banks can be Scaled Up from India (both Voice and Non-Voice Services).
- In Services Sector, Further Business Intelligence Services Useful for CEO and Board Decision Making for Fortune 500 Organizations can be Provided from India. This is Because The Needed Mathematical, Statistical and Data Analytics Skill Set is Currently Abundant in India post 2020. To Add to this Post 2020, Few Million Workers Across Industries were trained both Online and Offline in Artificial Intelligence in India. The combination of these Skills Set Analytics and AI can do Wonders to Fortune 500 Organizations Businesses. This Opportunity can be Further Captured Early. Because Now the Trend is, all the decisions are data based and evidence-based decisions driven from the hidden Patterns in Data and Insights driven from data; and also application of Artificial Intelligence in Predicting Consumer Behavior.
- Another Area of Research can be Material Science; which is needed globally. That is We need to Innovate Developing High Quality Long Lasting Material at Low Cost using Waste Developed in the country by recycling. And This Material can be useful in sectors such as Space Equipment, Radars, Satellites, Aircraft Components, Aircraft Seats and Seat Belts, Tires Manufacturing, Wings Manufacturing, Innovative Window Manufacturing, and should be useful for Other Engine Component Manufacturing. As The Global Airline and Aviation Industry is worth $7.5 trillion as on 2025, there is lot of scope for Innovators of Low Cost Materials from Developing Countries in this Sector.
Thus, we needed to Innovate in New Areas and Growth Sectors in Order to Increase Indian Exports to the Global Markets. Industrialists and Entrepreneurs have the Opportunities not only in domestic markets but in global markets keeping these Global Industries Market sizes in Mind, There is huge scope to Scale Up Maintaining the Self Sufficiency in the Country. This Could be one of the Focus Area We can look into in the Direction of Hitting GDP targets.
All the best.
Dr.Goparaju Purna Sudhakar