India’s growth has exceeded 6% p.a. over the last six years. Growth in recent years has been supported by robust household consumption, stronger investment—particularly in infrastructure—and greater exports. India’s largest sector is the services sector, contributing 55% of GDP in 2017. There are now over 5,200 technology start-ups in India; Fintech and healthcare technology sectors are growing at 31% and 28% respectively. Favourable population dynamics, improving business conditions including recent tax policies aimed at simplifying convoluted tax laws and better integrating India’s large consumer market, should support medium term growth.
GDP per capita passed US$2000 in 2017 and is forecast to reach US$3000 by 2023. But despite the rise in average incomes, 58% of India’s population still lives on less than US$3.10 and half of the children under five years of age suffer from malnutrition. There are 263,000 millionaires and 131 billionaires in India, with the richest 1% controlling 73% of the country’s wealth.