The urban population will be the driver of the Indian economy, contributing about three-fourth of the GDP by 2030, according to a recent report.
The urban population will be the driver of the Indian economy, contributing about three-fourth of the GDP by 2030, according to a recent report. While the urban population contributes about 63% to Indian GDP at present, the same is expected to rise to 75%, a joint report by CBRE and CREDAI said on Tuesday. However, to achieve the same, massive reforms are required in terms of ramping up the infrastructural needs of the cities. “Most Indian cities lag on key quality of life parameters and are plagued by challenges such as poverty, lack of affordable housing, traffic congestion, overcrowding, environmental degradation and air pollution,” said the report, adding that if the stress on the physical and civic infrastructure systems of the cities is eased, the urban population will be able to contribute the most to the GDP.
The Narendra Modi-led government has posed a $5 trillion economy dream by 2024 and the country is expected to witness a strong growth led by factors such as a robust workforce and a changing policy scenario. By 2030, the economy is expected to reach $9 trillion with a growth rate of 9% per annum. However, a much stronger policy reform push is needed to achieve the goal. “In case the country’s growth trends are similar to the current scenario/current pace of policy reforms, the GDP is expected to reach USD 6.5 trillion by 2030. However, if the current reforms have a reversal effect, India’s GDP is expected to reach only about USD 4.3 trillion by 2030,” said the report.
Even if things don’t pan out as expected, by 2030, the country’s economy is likely to be second only to the US and China and will emerge as the third-largest economy of the world. Currently, India is the sixth biggest economy globally after the US, China, Japan, Germany, and the United Kingdom.
Previously, an Oxford Economic survey said that all of the ten fastest-growing cities in the world will be from the Indian subcontinent as they are going to witness an exponential growth in GDP. These cities include Surat, Agra, Bengaluru, Hyderabad, Nagpur, Tiruppur, Rajkot, Tiruchirappalli, Chennai, and Vijaywada.