Budget 2025: More reforms, private investments must for India to become $30 tn economy
Subscribe to enjoy similar stories. India is charting an ambitious course toward its vision of a $30-trillion economy by 2047. To realize this, India must sustain double-digit growth over the next two decades.
Hitherto, services sector has been the engine that has powered the economy, but manufacturing sector must also fire up for this vison to become a reality. Manufacturing must contribute 30%-plus to the incremental GVA to achieve our targets, significantly increasing its contribution from the current 15-17%, competing with its peers such as China (26%), South Korea (29%), and Vietnam (24%). Over the past decade, the government has launched strategic initiatives such as Make in India, production-linked incentives (PLI), and large-scale infrastructure expansion to propel the manufacturing ecosystem.
PLI has successfully attracted $17-billion investments, especially in critical sectors such as pharmaceuticals and bulk drugs, electronics and components, and solar PV or panels. Infrastructure witnessed rapid expansion through the Bharatmala and Sagarmala projects, with road construction tripling to 34 km/day in the past decade. We have seen green shoots emerging of Indian companies investing in sunrise sectors such as electronics, cell manufacturing and EV, as well as sectors requiring self-reliance such as defence.
A testament to this being that 14% of global iPhones are now produced in India, projected increase to 32% by FY27. Also Read | Budget strengthens the backbone of India’s consumer economy The task for Union Budget 2025 was clearly cut out–spur consumer demand and introduce structural reforms to rekindle the animal spirits of the Indian economy. The Budget 2025 has announced multiple key initiatives to address
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