India ‘to drive 20% of global economic growth in next decade’
India will be driving 20% of the world’s economic growth in the next decade as it continues its march to become the third-largest economy globally, according to G20 Sherpa Amitabh Kant.
Speaking to the All India Management Association (AIMA), he said that India continues to be the fastest-growing large economy in the world and is the fifth-largest economy.
“In the next three years, we will overtake Japan and Germany to be the third largest economy in the world. In a world which is starved for growth, India is an outlier and has emerged as a very resilient powerhouse driving growth,” he said. “What we are witnessing today is a once-in-a-generation shift in our economic position.”
Kant said that the country needs to transform the lives of people living in rural areas, improve health outcomes and enhance nutritional standards to become a developed nation by 2047.
“If India is to grow at 9-10 per cent over the next three decades and become a developed economy by 2047, we need to improve our learning outcomes, our health outcomes and nutritional standards in a very big way," he said.
He added that the top 50% of India’s population actually creates growth and drives prosperity. And the bottom 50% lives mainly in rural areas, relying on agriculture wage labour or government welfare schemes to achieve basic living standards. It is important that we transform the lives of these people to the bottom 50%.”
In the G20, the Sherpas are the leaders of each country who take the discussions and agreements to the final summit with government heads of state.
‘India must lead AI revolution’
Turning to artificial intelligence (AI), Kant the technology plays a critical role in the start-up ecosystem
He said that according to industry body nasscom, 70% of Indian start-ups prioritise AI to drive their growth, thus underscoring
India should not just participate but steer the ongoing AI revolution, and mobilise the powerful technology to bring the nation to the forefront of the global stage, he said.
“We’re truly in a unique moment with the ongoing AI revolution. Its relentless advancing capabilities across the board, its increasing adoption by citizens, and most importantly, its potential to redefine the very fabric of industry and society marks this as a transformative era,” Kant said.
He added: “India proudly holds the position of having the second highest number of GitHub AI projects globally, accounting for 19% of worldwide AI projects. this demonstrates a vibrant and active engagement in AI development on an international scale.
“As we embrace this revolution, the question before us is not merely how we can participate but how we can lead the world. It is our opportunity and indeed our responsibility to harness this powerful technology to propel Indian companies to the forefront of the global stage.”
Kant said Indian start-up enterprises are not just participants in this revolution, but are driving it with vigour, and vision.
“For me, strategic integration, AI-led data analytics, core R&D, ethics and governance are critical. Just as the first industrial revolution gave birth to various industries with the introduction of the steam engine, AI has the potential to revolutionise multiple sectors in India,” he said.
Kant added that it was especially important to establish AI integration across sectors like healthcare, logistics, agriculture and FMCG (fat-moving consumer goods).
“In healthcare, AI can significantly enhance diagnostic accuracy and patient care efficiency, directly impacting patient outcome and healthcare delivery,” Kant said.
AI can help transform logistics by streamlining supply chain operations – rather than adopting a generalised approach, the key lies in developing customised AI solutions tailored to meet the specific needs of each sector, he said.
To ensure the effectiveness and efficiency of these AI applications it is important to analyse the objectives of enterprises and align them with AI capabilities.
