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India's Growth Outlook: Transformations and Megatrends, 2040

Publisher Frost & Sullivan
Published Dec 31, 2025
Length 75 Pages
SKU # MC20694328

Description

India is on the cusp of a historic economic transformation. It is projected to become the world’s third-largest economy by 2030, with a nominal GDP of $11.46 trillion by 2040. This growth trajectory is underpinned by structural shifts across pillars, including rapid digitalization, green transition, manufacturing scale-up, urbanization, and demographic advantage.

Key transformations India is undergoing include the rise of AI-powered automation, smart infrastructure, and clean energy dominance. These are supported by policy frameworks such as the IndiaAI Mission, National Infrastructure Pipeline, and Green Hydrogen Mission. India’s manufacturing ascent, bolstered by Production-Linked Incentives and a global supply chain diversification pivot, will drive India’s share in global manufacturing to 4% by 2040. Urbanization and mega city clusters will generate $2.6 trillion in GDP, while a consumption pivot toward premiumization and discretionary spending signals a shift toward value-driven markets.

This macroeconomic thought leadership also highlights India’s demographic trends. For example, 69% of the working-age population and a trillion-strong Gen-Z/Alpha cohort will fuel digital adoption and entrepreneurial growth. Strategic opportunities span AI integration, smart city technologies, renewable energy ecosystems, healthcare digitization, and advanced manufacturing.

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75 Pages

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