India is expected to grow between 6-10%: Report

India's impressive economic trajectory over the past two decades has positioned it as the world's fifth-largest economy, with a GDP growth of sixfold. A new report from venture platform and accelerator Fibonacci X reveals a promising outlook, forecasting a growth rate between 6-10% in the coming years, driven by the services sector, R&D advancements, and a thriving digital payments ecosystem.

Kulmani Rana, Founder and CEO, Fibonacci X, said: “Going by economic growth trends, India is poised to be a global hotspot for economic growth. India is not insulated from world risks, but can overcome them faster. We are expecting a growth fuelled future for Bharat."

R&D and Digital Payments: Key Growth Catalysts

India is emerging as a global hub for research and development, with a substantial increase in the number of R&D professionals. Currently, 1.6 million professionals are employed in captive centers and over 1,580 global capability centers are operating within the country. This surge in R&D activities is expected to drive innovation and create intellectual property, further strengthening India's economic fabric.

The digital payments landscape in India is also experiencing exponential growth. The number of digital payment users is projected to double by 2030, reflecting the robust infrastructure and widespread adoption. This growth is anticipated to enhance financial inclusion and drive economic activity across various sectors.

Manufacturing and Agriculture: Areas of Focus

The manufacturing sector, which has seen stagnation, is on the cusp of transformation, largely dependent on the implementation of new policy initiatives. The Production Linked Incentive (PLI) scheme is expected to yield significant returns in the next five to seven years, signaling a potential resurgence in manufacturing output.

Agriculture, however, remains a critical challenge. Despite being the primary livelihood source for 60% of the population, its contribution to GDP has remained static. Analysts highlight the need for rapid reforms through state-level legislation to address this sector's underperformance.

Startup Culture and Economic Diversification

India's vibrant startup culture, fueled by popular initiatives like Shark Tank, is making strides in addressing local problems with local solutions. This grassroots innovation is expected to lead to increased intellectual property creation and a more diversified economy.

Banking health has improved, with the Gross NPA ratio declining significantly over the past five years. However, the efficiency of asset reconstruction mechanisms still lags behind global standards, presenting an area for further improvement.

Strategic Position in Global Dynamics

The Fibonacci X report also underscores India's strategic importance in shaping the next world order, alongside nations like France and Saudi Arabia. As countries with autonomous perspectives, they hold the potential to influence global economic and political landscapes significantly.