India Country profile

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India’s growth has exceeded 6% per annum over the seven years to 2019. Growth in recent years has been supported by robust household consumption, stronger investment—particularly in infrastructure—and greater exports. That said, growth has weakened since 2016, in part because of slow income growth. The IMF projects real GDP growth to grow at 7%, or more, in the next five years.

India’s services sector drives economic output, contributing 57% of GDP in 2018. There are now over 8,900 technology start-ups in India in 2019 according to Nasscom; in particular, Fintech and healthcare technology sectors have grown significantly. Favourable population dynamics and improving business conditions, including simplified tax laws bolster the outlook. Advancement in technology and infrastructure to better integrate India’s large consumer market should further support medium term growth.

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The IMF estimates GDP per capita rose above US$2,100 in 2019 and forecast it to reach US$3,200 by 2024. But despite the rise in average incomes, poverty remains widespread and a mere 10% of children under 2 years are fed a minimum acceptable diet. According to OXFAM International, there are 119 billionaires in India, while the country is estimated to produce 70 new millionaires every day between 2018 to 2022 and the richest 1% controlled about 73% of the country’s wealth generated in 2017.

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