India Poised for High-Income Status with $23-$35 Trillion GDP by 2047: Report

India is on track to achieve high-income nation status by 2047, with a projected GDP of $23-$35 trillion, according to a new report by Bain & Company and Nasscom. The report, released on Thursday, attributes this growth to sustained annual growth rates of 8-10 percent, driven by the country’s demographic dividend, technological innovation, and sectoral transformation.

With nearly 200 million individuals expected to enter the workforce in the coming decades, India has a unique opportunity to drive high-value job creation and unlock significant economic potential. The report identifies five key sectors—electronics, energy, chemicals, automotive, and services—as strategic growth levers due to their alignment with global trends and scalability.

#### Key Growth Drivers

Rising income levels, a growing pool of skilled workers, and continuous improvements in infrastructure are cited as critical factors that can fuel India’s economic growth. Sangeeta Gupta, Senior Vice President at Nasscom, emphasized the importance of investing in digital and transport infrastructure, enhancing domestic manufacturing, and driving collaborative research and development (R&D).

“By investing in digital and transport infrastructure, enhancing domestic manufacturing, and driving collaborative R&D, we can position India as a leader in future technologies and global trade. A multi-pronged, tech-driven approach will be key to unlocking inclusive and sustainable growth,” said Gupta.

#### Technological Advancements

Advances in AI-driven chip design, touchless manufacturing, and backward integration into component manufacturing and design could enhance cost competitiveness and innovation. These advancements are expected to drive the sector’s export share from 24 percent to 45-50 percent by 2047 and increase its GDP contribution from 3 percent to 8-10 percent.

India’s share of renewables in overall energy generation has the potential to rise from 24 percent in 2023 to 70 percent by 2047, supported by modernizing energy infrastructure and scaled investments in green energy. The country is also likely to transition from a net energy importer to a net exporter.

#### Sectoral Contributions

AI-powered molecular design and digital twin technologies, along with other tech-driven improvements, can significantly increase India’s share in the global value chain from around 3 percent to over 10 percent by 2047. The auto-components export sector is projected to reach $200-$250 billion by 2047, driven by near-term share capture in the internal combustion engine (ICE) market and a longer-term shift to electric vehicles (EVs).

#### Electronics Sector

The electronics sector is poised to emerge as a global manufacturing hub, with expectations to reach $3.5 trillion by 2047, contributing more than 20 percent to global production. Lokesh Payik, Partner at Bain & Company, highlighted the sector’s instrumental role in India’s economic journey.

“Electronics is one of the key sectors instrumental in this journey and is poised to emerge as a global manufacturing hub expected to $3.5 trillion by 2047, contributing more than 20 percent to global production,” said Payik.

#### Conclusion

India’s path to becoming a high-income nation by 2047 hinges on strategic investments, technological advancements, and sectoral transformations. With the right policies and initiatives, India has the potential to achieve remarkable economic growth and position itself as a global leader in various industries.