India to become third largest economy by 2020
Posted on: October 6, 2016, by : PRTeam
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According to published sources in the first quarter of 2016, India marked an expansion of 7.3% GDP in the last quarter of 2015. This development has made the country as one of the fastest growing economies in the world. This has been a positive impact as the GDP increase has been significant compared 6.6% during last quarter of 2014. On the other hand, China’s GDP has slipped by 6.8% during last quarter of 2015. Hence investors have been turning their interests towards various sectors of India. There are several factors which have influenced this development on a large scale.

  • One of the primary factors contributing to this fast paced growth is attributed to the fact that India is a net importer of oil and decrease in oil prices have resulted in bringing down the inflation to a great extent.
  • India has a population of 1.2 billion, of which 50% consists of people within the age group of 25 years. By 2020, it is expected to be one of the youngest population countries in the world which is likely to serve as an advantage to the consumer and tech companies. At the same time, China is struggling with the aging population and a slower fertility rate.
  • Political and legal framework in terms of reforms has been positive towards country growth as a whole.

With all these positive scenarios, there are certain sectors which are likely to become the highest employment zones between 2016 and 2020.

  • The frontier in this regard will be the Information technology sector. It has contributed to the rapid transformation of Indian economy. It is expected that the industry will reach USD 225 billion by 2020 with an employee count of 30 million during the same period. The outsourcing segment in this industry is also likely to reach USD 2.5 billion. The payment structure is anticipated to be the highest in this sector.
  • The telecom industry is next in line in this regard. Currently, the mobile phone subscription count of India passed 1 billion at the beginning of 2016. Moreover, the smartphone penetration rate is 26.3%. These statistics show a significant growth of this industry which is expected to continue in the coming five years.
  • Healthcare segment is one of rising stars of employment that contributes significantly to India’s GDP. More than 40 million jobs are expected in this segment in the coming five years. Medical tourism is on the rise in India and domestic market potential looks eminent.
  • Infrastructure segment is the fourth largest in the country and has been accounted for as second fastest growing industry. Though this segment is highly fragmented it is expected to register a growth rate of 7% to 10% in the coming years boosting employment.
  • The last but definitely not the least is the retail segment. 100% FDI, online e-commerce, mobile payments and convenience has worked towards its steady development. The projection says that the workforce in this segment is expected to double up by 2020.
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