New Delhi, Sep 7 — Former Deputy Governor, Reserve Bank of India Dr. Michael Patra said India can emerge as the world’s largest economy if it fully leverages its demographic dividend and implements structural reforms in employment, manufacturing, infrastructure and women’s labour force participation.
The report from Emkay Global Financial Services Ltd. said its event saw Patra mentioning India’s demographic window of opportunity which extends to about 2055 and must be harnessed to sustain higher incomes, savings and investment.
With a young population and a rising working-age population, the country must effectively utilise this demographic dividend will be critical to sustaining higher growth over the coming decades, he said.
“India’s time has come,” he noted, pointing to the convergence of several favourable forces that could provide significant tailwinds to the country’s economic journey.
India has averaged 7.7 per cent growth since FY22 and is currently the second-largest contributor to global growth, behind China. Dr. Patra highlighted that India’s growth trajectory has strengthened significantly following the pandemic.
“India’s economic journey is entering a phase where the scale of its opportunity is matched by the complexity of the global environment. For investors, understanding this transition requires looking beyond near-term cycles and assessing the deeper shifts shaping India’s markets and its place in the global economy," said Nirav Sheth, CEO – Institutional Equities, Emkay Global Financial Services Ltd.
India has also strengthened its economic buffers across the external, fiscal and financial sectors, the report said.
Foreign exchange reserves, a relatively contained current account deficit, an improving fiscal position and stronger banking-sector balance sheets provide resilience against external shocks. Fiscal consolidation is also being accompanied by a shift towards capital expenditure, creating greater space for private-sector investment.
The report highlighted the need to raise women’s labour force participation, increase reskilling and align education with employment.
Manufacturing, currently accounting for 17 per cent of GDP, was identified as critical to absorb unskilled labour and build capabilities for higher‑value services.
The opportunity extends to exports, with India’s growing electronics exports and expansion of Global Capability Centres (GCCs) demonstrating its ability to integrate more deeply with global supply chains.