The Asian giant has posted the best growth in the world in recent years: 5.5% on average, and it should move up a gear with its urbanization and modernization. But to ensure this, the country must invest in its infrastructure, to the tune of 840 billion dollars, estimates the World Bank. This is the condition for attracting capital and investment from foreign companies, and taking full advantage of the opportunities of digital technology and the energy transition.
In 2023, India will become the most populous country in the world ahead of China with 1.4 billion people, according to the UN. And its GDP will exceed that of Japan and Germany in 2027, according to the American bank Morgan Stanley, which will make Gandhi’s homeland the third largest economy in the world behind the United States and China. In 2022, its economy is expected to grow by 6.8%, according to the International Monetary Fund (IMF), i.e. growth twice as fast as the world economy (+ 3.2%). Last but not least, it is also the fourth military power in the world.
But this leading role forces the Asian giant to meet several challenges. One of the most important is the rapid development of urbanization. Because India is still a predominantly rural emerging economy. 64.61% of India’s population lives outside major cities compared to 37.49% for China, according to 2021 data from the World Bank.