The ASSOCHAM-Egrow report outlines India’s significant economic transformation trajectory by 2047, emphasizing that the manufacturing and services sectors will lead this change.
According to the report, these sectors are expected to employ 67% of the workforce and account for 75% of the GDP, signaling a shift away from agriculture as the backbone of the Indian economy.
India’s nominal GDP is forecasted to expand from $3.5 trillion in 2023 to a staggering $22.8 trillion by 2047, driven by an annual growth rate of 7.5%. The services sector is set to increase its share of GDP from 54.2% in 2023 to 60% by 2047, showcasing its dominance in the economic structure.
Meanwhile, the manufacturing sector will maintain steady growth, contributing 18% to GDP, while the share of agriculture will significantly reduce to 10%, highlighting the ongoing structural transformation.
The report predicts a parallel shift in employment trends. By 2047, the services sector will employ 52.3% of the workforce, marking a significant increase from 24.3% in 2000. Similarly, manufacturing will witness growth in employment share, rising from 10.9% in 2023 to 15% by 2047. In stark contrast, agriculture’s employment share will fall dramatically from 59.4% in 2000 to 22% by 2047, reflecting reduced dependence on agrarian jobs as other industries expand.
The MSME sector, currently contributing 30% to GDP and 45% to exports, holds immense potential for future growth. The report highlights that efforts focused on formalization, technology adoption, and productivity enhancement will make MSMEs pivotal to India’s economic expansion.
To further support this transformation, Foreign Direct Investment (FDI) will play a crucial role. With the government focusing on gross fixed capital investment and fostering business-friendly policies, FDI is expected to boost high-tech manufacturing, exports, and the services industry.
The report underscores the importance of skill development to prepare India’s growing labor force. With the workforce projected to reach 76.9 crore and the working-age population expected at 118.4 crore, there is an urgent need for upskilling and training to enable workers to thrive in technology-driven industries.
As India works toward its target of achieving a per capita income of USD 14,000 by 2047, the government faces the challenge of balancing economic growth with inclusivity and sustainability. The report advocates for investments in infrastructure, technology, and education to ensure equitable growth across all sections of society.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is one of India’s premier trade associations, established in 1920. It serves as a key platform for dialogue and collaboration between businesses, government, and other stakeholders to promote economic growth and policy advocacy.
Founding and Membership:
Founded in 1920, ASSOCHAM represents a wide array of industries, including trade, commerce, technology, and more.
It has over 400 chambers and trade associations as members and represents more than 4.5 lakh businesses and professionals across India.
Vision and Mission:
The organization aims to facilitate India's economic growth and global integration by fostering a conducive business environment.
It provides policy recommendations to the government, promotes trade and investment, and supports infrastructure development.
Advocacy and Policy:
ASSOCHAM plays a pivotal role in advocating for policy reforms across various sectors, including finance, agriculture, technology, education, healthcare, and energy.
It engages with policymakers to address industry challenges and promote sustainable development.
Global Reach:
ASSOCHAM works to strengthen India’s economic ties with global markets. It organizes international trade delegations, forums, and exhibitions to promote Indian industries abroad.
Knowledge Partner:
The organization frequently publishes research reports, policy briefs, and white papers in collaboration with academic institutions and consultancy firms to provide insights on critical economic issues.
Events and Initiatives:
ASSOCHAM organizes seminars, conferences, workshops, and awards to recognize business excellence and innovation.
ASSOCHAM serves as a bridge between the government and the private sector, influencing policies to drive India’s economic transformation. It is a key player in shaping industrial policies and addressing socio-economic challenges.
India's journey toward becoming a manufacturing- and services-driven economy by 2047 reflects a monumental shift in its economic structure. The insights from the ASSOCHAM-Egrow report showcase the country's potential to achieve a $22.8 trillion GDP and a per capita income of USD 14,000 through strategic investments in FDI, MSMEs, and skill development.
While the dominance of manufacturing and services will redefine workforce and GDP contributions, the reduced reliance on agriculture highlights the need for a balanced and inclusive growth model. India's success will depend on aligning economic aspirations with sustainability, technology adoption, and empowering its vast labor pool.
As the nation marches toward its centenary of independence, ensuring that every segment of society benefits from this transformation will be key to achieving a developed, equitable, and sustainable India by 2047.