India Update

Metro Cities
Key Cities
Tyre 2 and 3 cities

Indian Economy and Socio-Political Scenario:

In 2022/23 India's GDP grew by 6.6 percent, a GDP growth of 7,2 percent is forecasted for 2023/2024. Multilateral agencies see India's economic growth accelerating, China moderating.

Three mega trends are: global offshoring, digitalization and energy transition are reasons for the unprecedented economic growth in the country of more than 1bln people. India's GDP could more than double from $3.5trln to surpass $7.5trln by 2031. Its share of global exports can double, while the Bombay Stock Exchange could deliver 11 percent annual growth, reaching a market capitalization of $10trln in the coming decade.

The opportunity set in India must be on global investors' radar. India will be one of only three economies in the world that can generate more than $400bln annual economic output growth from 2023 onward, rising to more than $500bln from 2029."

India's political stability plays a vital role in the country's economic growth. General elections will take place in April/ May 2024 to constitute the 18th Lok Sabha, House of the People, Lower House of India's bicameral Parliament. Prime Minister Modi's BJParty who won a second term till 2024, strongly campaigns on development and fight against corruption.

India's genuine middle class is about 200mln people with a large economic impact. Youth is India's strength with over 50 percent of India's population below the age of 25, 65 percent below 35. In 2022 India's median was 28 years, compared to 37 in China, 48 in Japan. In the coming decade, the number of people employed in India for jobs outside the country is likely to at least double, reaching more than 11mln, as global spending on outsourcing swells from $180bln per year to around $500bln by 2030.

Outbound Travel Business:

Outbound tourism from India will surpass USD 42bln by 2024. With a growing economy, young population, and growing middle class, India is ideally positioned to become one of the most lucrative outbound tourism markers in the world. The US remains the number one destination, followed by short haul travel - mainly Dubai, M/E and South East Asia. Europe sees 20 percent of travellers from India, 10 percent travel to Australia/New Zealand. The NRI Non-Resident Indian segment of about 25mln people is very important for inbound travel and frequent visits and link to the strong VFR segment.