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

Business Standard

19 hours ago

An analysis conducted by PHD Chamber of Commerce and Industry in a report on Population, Productivity, Partnership: Rethinking G7-India Collaboration highlights that India will continue to grow robustly, even among major industrialized G7 countries. Indias consistent real GDP growth makes it the key growth driver for the world economy. The transformative reforms including GST, Insolvency and Bankruptcy Act, Production Liked Incentive Scheme, growing digital infrastructure (Aadhaar, UPI) and Make in India, among others, is strengthening Indias ascendency in the World, said Mr Hemant Jain, President, PHD Chamber of Commerce and Industry.
The objective of the report is to assess the Indias growth and trade dynamics among G7 economies. Secondly, to discuss the recent Honble PM visit to Canada for G7 Outreach Session. Thirdly, to examine the cooperation and collaboration potential between India and G7. With an average real GDP growth of more than 8% growth from 2021 to 2024, India has consistently outpaced all G7 members. IMFs 2025 projections indicate that India will maintain a growth trajectory above 6% (average) through 2029, supported by robust domestic demand, sound macroeconomic fundamentals, and its demographic dividend, he said.
In terms of purchasing-power-parity (PPP) terms, Indias share in global GDP has surged from 7.0% in 2020 to 8.3% in 2024, and is anticipated to exceed 9% by 2029, he said. A crucial underlying factor is the demographic divergence between India and G7, said Mr. Jain. Indias working-age population (1564 years) is projected to increase in the coming years with over 68% of its population currently between 15-64 years. This demographic dividend supports labor supply expansion, boosts domestic consumption, and enhances the innovation ecosystem through a vibrant startup culture and rising tertiary education enrolment, said Mr. Jain.
Further, Indias share of total population ages 65 and above constitutes less than 5% (2025). Conversely, G7 nations are confronting demographic headwinds as they their share is more than 10% highlighting rapidly ageing populations, shrinking labor pools, and rising old-age dependency ratios, said Mr. Jain. By 2030, this share is expected to double or more than double for of the G7 economies. This is likely to slow potential output, reduce consumer demand, and increase fiscal burdens related to pensions and healthcare, said Mr. Jain.
Notably, Indias merchandise trade with G7 countries has surged by 61%, rising from USD 154 billion in FY 202021 to USD 248 billion in FY 202425, maintaining a steady trade surplus. This reflects Indias growing export competitiveness and indicated by commodity net export price index, bolstering its external sector resilience, he noted.
Honble Prime Minister Shri Narendra Modi, in his address at the Summit, underscored Indias leadership in clean energy transition, climate action, and digital innovation. Key global initiatives led by Indiathe International Solar Alliance, Mission LiFE, and the Global Biofuels Allianceare shaping a greener, more inclusive world, said PHDCCI. In 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. Honble Prime Minister urged for global cooperation on AI governance, resilient tech supply chains, and curbing the misuse of emerging technologies, said PHDCCI. Last but not the least, 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, said the study.