Vision 2030: An Economy in Transition by IMA Research

IMA recently published its ‘Vision 2030: India’s Growth Frontiers’ report, which offers a comprehensive analysis of the factors driving the country’s economic transformation. This report aims to provide strategic insights and recommendations to navigate what is undoubtedly an exciting and dynamic environment, while decoding the nuances of India's economic journey in the years ahead. Given the sheer length of the report, we will be sharing bite-sized extracts from the study over the next few weeks. 

The first episode of this series looks at the both the drivers and the challenges that will shape the India of 2030, including: 

• Economic Growth: India’s GDP could reach between USD 5.2 trillion and USD 7.8 trillion by 2030, greatly boosting per capita income and consumption.
• Consumption-Led Expansion: By 2030, India will be one of the world’s main growth drivers, with private consumption exceeding 60% of GDP, supported by a young population and rising incomes.
• Sectoral Shifts: Agriculture's share will decline, while services, manufacturing and infrastructure will dominate the economy.
•  Capital Inflows: Strong FDI, particularly in services and IT, coupled with evolving financial markets, will open new opportunities for growth.
• Challenges: Key risks include low investment rates, fiscal pressures, declining savings, skill gaps and inadequate social security. These must be addressed to sustain growth.