India’s economic aspirations

As China’s rivalry with the U.S. grows, and economic growth slows, India could become the next global manufacturing powerhouse


POTENTIAL GAIN TO INDIA’S GVA*, 2020-2027 ($billions)

Under Prime Minister Narendra Modi’s (right) Make in India campaign, India’s highway network is 50% longer and domestic air passengers have roughly doubled
 
Aerospace/defence 		8
Furniture/leather/rubber 	12
Apparel/textiles 		17
Pharmaceuticals 		21
Vehicles/components 		22
Capital goods/machine tools 	27
Metals/basic materials 		30
Electronics/semiconductors 	47
Agriculture and food 		60
Chemicals			73
  
Total: $317bn         

U.S. companies such as Microsoft and Apple are expanding in India – shipments of India-assembled iPhones, including new iPhone 14 and iPhone 14 Plus models, doubled in value to $2.5bn from
Apr-Dec 2022

BOUNCING BACK
India’s GDP per capita as percentage of global average

1960: 17.9%
1993: 6.5%         
1991: India liberalisation
2014: Modi wins power
2021: 18.6%                

25% 
20 
15
10
5
1960	1970	1980 	1990 	2000	2010 	2020


*Gross Value Added – dollar value for goods and services produced, minus cost of all inputs and raw materials. Used to calculate Gross Domestic Product (GDP)


Sources: Bloomberg, McKinsey & Company 
Pictures: Getty Images, Apple 
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