India has long been a study in contrasts, but probably never as much as in recent years. The International Monetary Fund has projected India’s GDP growth at a robust 7.4 per cent for 2016–17, even as uncertainties cloud the outlook for global growth.
Twenty-five years after India embarked on its liberalisation programme, it offers attractive longterm potential, powered largely by a consuming class that we expect will more than triple, to 89 million households, by 2025.
This rapid growth is contributing to a major shift in the world’s economic balance of power. Looking back, it took a 1,000 years for the world’s economic centre of gravity to shift from Asia to Europe, but MGI studies show that this trend is reversing at a stunning speed.
The shift back from the United States and Europe toward Asia is expected to continue over the next decade, with India contributing significantly.