India will continue to grow robustly, even among major industrialised G7 countries: PHDCCI

India Gazette

2 days ago

New Delhi [India], June 28 (ANI): India will continue to grow robustly, even among major industrialised G7 countries, the PHD Chamber of Commerce and Industry (PHDCCI) said in a report on 'Population, Productivity, Partnership: Rethinking G7-India Collaboration'.
The PHDCCI report added that with an average real GDP growth of more than 8 per cent from 2021 to 2024, India has consistently outpaced all G7 countries: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
IMF's 2025 projections indicate that India will maintain a growth trajectory above 6 per cent (average) through 2029, supported by robust domestic demand, sound macroeconomic fundamentals, and its demographic dividend, the report said.
'India's consistent real GDP growth makes it the key growth driver for the world economy. The transformative reforms, including GST, the Insolvency and Bankruptcy Act, the Production Linked Incentive Scheme, growing digital infrastructure (Aadhaar and UPI) and Make in India, among others, are strengthening India's ascendancy in the World', said Hemant Jain, President, PHDCCI.
The objective of the report was to assess India's growth and trade dynamics among G7 economies.
In terms of purchasing-power-parity (PPP) terms, India's share in global GDP has surged from 7.0% in 2020 to 8.3 per cent in 2024, and is anticipated to exceed 9 per cent by 2029, he said.
A crucial underlying factor is the demographic divergence between India and the G7, said Jain.
India's working-age population (15-64 years) is projected to increase in the coming years, with over 68 per cent of its population currently between 15-64 years.
This demographic dividend supports labour supply expansion, boosts domestic consumption, and enhances the innovation ecosystem through a vibrant startup culture and rising tertiary education enrolment, said Jain.
Further, India's share of the total population ages 65 and above constitutes less than 5 per cent (2025). Conversely, G7 nations are confronting demographic headwinds as their share is more than 10 per cent, highlighting rapidly ageing populations, shrinking labour pools, and rising old-age dependency ratios, said Jain.
By 2030, this share is expected to double or more than double for the G7 economies.
'This is likely to slow potential output, reduce consumer demand, and increase fiscal burdens related to pensions and healthcare, said Jain.
Notably, India's merchandise trade with G7 countries has surged by 61 per cent, rising from USD 154 billion in FY 2020-21 to USD 248 billion in FY 2024-25, maintaining a steady trade surplus.
'This reflects India's growing export competitiveness, indicated by the commodity net export price index, bolstering its external sector resilience, Jain added.
The industry body said in the report that key global initiatives led by India--the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance--are shaping a greener, more inclusive world.
In the technology and digital governance space, India highlighted its commitment to a human-centric and ethical approach to AI, showcasing initiatives like BHASHINI and Digital Public Infrastructure (DPI) as global models.
The report added that a strategic collaboration in areas including clean and renewable energy, climate finance, Digital Public Infrastructure, Trade & Supply Chain Resilience, Maritime & Indo-Pacific Security and Healthcare & Pharma will drive a mutually beneficial growth trajectory. (ANI)