India’s economic growth remains high
According to the World Bank, India’s average annual GDP growth rate over the past five years has exceeded 7%, making it one of the engines of global economic growth.
Manufacturing accounts for about 17% of India’s GDP, while the service sector contributes more than 50% of GDP. Especially in the field of information technology services, India holds a leading position globally. For example, companies like Infosys and Tata Consultancy Services have driven rapid growth in the service sector.
In recent years, the Indian government has implemented a series of structural reforms, including the introduction of the Goods and Services Tax (GST). It is reported that the implementation of GST increased India’s tax revenue by 15% between 2017 and 2022.
India has a population of over 1.3 billion, with 65% of the population under the age of 35.
Tax reforms such as the implementation of the Goods and Services Tax (GST)
This tax system officially came into effect on July 1, 2017, replacing the previously complex multi-layered tax system. GST integrates multiple taxes into a unified tax system. According to data from the Indian government, GST revenue increased by 11.9% in the first year after implementation.
It is estimated that the implementation of GST saves the Indian economy about $15 billion annually in logistics costs. Many international companies, such as Amazon and Walmart, have increased their investments in India. According to data from the Indian government, India attracted a record $62 billion in foreign direct investment (FDI) in 2018. The number of new business registrations increased by 30% after the implementation of GST, showing enhanced market vitality.
According to data from the Ministry of Finance of India, the tax compliance rate increased by 20% after the implementation of GST.
Foreign Direct Investment (FDI)
According to data from the United Nations Conference on Trade and Development (UNCTAD), India attracted more than $81 billion in foreign direct investment in 2020, a year-on-year increase of 13%. For example, the Delhi-Mumbai Industrial Corridor (DMIC) project invested by the Japan International Cooperation Agency (JICA) has a total investment of over $90 billion.
In 2021, tech giant Google announced an investment of $10 billion in India. The Indian government launched the “Make in India” plan to attract foreign investment to set up factories in India. It covers multiple industries such as automotive, electronics, and pharmaceuticals and provides tax incentives and simplified approval procedures. Since the launch of the “Make in India” plan, FDI inflows have increased by 25%. International financial giants such as Citibank and Goldman Sachs have expanded their businesses in India.
Strong performance in high-growth industries (such as IT and pharmaceuticals)
According to data from the National Association of Software and Service Companies (NASSCOM) of India, the total revenue of the Indian IT industry reached $227 billion in 2022, a year-on-year increase of 15%. Companies like Tata Consultancy Services (TCS) and Infosys have won many customers.
In 2021, India’s pharmaceutical exports reached $24 billion, accounting for about 20% of the global pharmaceutical market. India is known as the “Pharmacy of the World,” with companies like Sun Pharmaceuticals and Dr. Reddy’s Laboratories growing rapidly.
According to a report by the Telecom Regulatory Authority of India (TRAI), the number of Internet users in India exceeded 700 million in 2022.
According to data from the International Renewable Energy Agency (IRENA), India added more than 10 gigawatts of solar power capacity in 2022. For example, companies like Adani Green Energy and Tata Power have brought growth momentum to the renewable energy sector.
According to statistics from the Indian E-commerce Association (IEA), the scale of the Indian e-commerce market reached $84 billion in 2022, a year-on-year increase of 25%. E-commerce giants like Flipkart and Amazon India have attracted a large number of consumers and investors.
