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India set to outpace G7 in growth & demographic strength: PHDCCI
India is set to outpace G7 nations in both economic growth and demographic strength, according to the PHD Chamber of Commerce and Industry (PHDCCI).
India's real GDP growth, averaging over 8 per cent between 2021 and 2024, has made it the fastest-growing major economy and a key driver of global economic momentum, as per PHDCCI's new report titled 'Population, Productivity, Partnership: Rethinking G7-India Collaboration.'
India is poised to outpace G7 nations in growth and demographics, driven by robust reforms, digital infrastructure, and a young workforce, according to a PHDCCI report. With real GDP growth averaging over 8 per cent (2021â€'2024) and rising trade with G7 countries, India is emerging as a global economic force. The report highlights collaboration in energy, digital governance, and innovation.
'India's 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 India's ascendency in the World,' said Hemant Jain, president of PHDCCI, in a press statement.
A crucial factor underpinning this growth is India's demographic advantage. With over 68 per cent of its population currently in the working-age group (15–64 years), the country is well-placed to expand its labour force, boost domestic consumption, and drive innovation through a vibrant startup ecosystem and increasing tertiary education enrolment.
In contrast, G7 countries are grappling with demographic challenges. Over 10 per cent of their populations are aged 65 and above—a share expected to double by 2030—raising concerns about shrinking labour pools, slowing economic output, and rising old-age dependency.
India's global economic presence is also rising. Its share of global GDP in purchasing-power-parity (PPP) terms increased from 7 per cent in 2020 to 8.3 per cent in 2024, with projections indicating it will exceed 9 per cent by 2029.
The report further highlighted a 61 per cent increase in India's merchandise trade with G7 countries, rising from $154 billion in FY21 to $248 billion in FY25. This growth reflects India's improving export competitiveness and external sector resilience.
At the recent G7 Outreach Session in Canada, Prime Minister Narendra Modi underscored India's leadership in clean energy, digital innovation, and climate action. Initiatives like the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance were cited as key contributions to a greener, more inclusive global future, added the report.
India also showcased its ethical, people-first approach to AI and digital governance, spotlighting initiatives such as BHASHINI and Digital Public Infrastructure (DPI) as models for global cooperation on AI, resilient tech supply chains, and the responsible use of emerging technologies.
Enhanced collaboration between India and the G7 in areas such as clean and renewable energy, digital governance, trade and supply chain resilience, maritime security, and healthcare will foster a balanced, inclusive, and sustainable global growth trajectory, the report concluded.
Fibre2Fashion News Desk (SG)
