MUMBAI (Diya TV) – India is racing ahead with the fastest economic growth in the world and making serious strides to become a global manufacturing center, says a recent report by Lazard. The global financial services firm praises India’s initiatives in its “Outlook on Emerging Markets” report, highlighting the country’s strong demographic dividend and proactive steps in manufacturing.

With nearly 80% of its population under the age of 50, India’s young and growing labor force promises to drive the country’s economic growth until 2060. The rising middle class and real wage growth further bolster this optimistic outlook. “India’s demographic dividend is a significant tailwind, and we project the country to grow rapidly until the 2060s,” the report states.

Indian Prime Minister Modi’s government has made significant progress in stabilizing India’s macroeconomy, integrating millions into the digital economy, and implementing crucial tax and other reforms. Modi’s pledge to turn India into a developed country by 2047 remains a key focus of his third term.

However, challenges in education and agriculture persist. Despite these hurdles, India continues to strengthen its manufacturing sector, as reflected in the Union Budget 2024-25. Finance Minister Nirmala Sitharaman emphasized the budget’s special attention to MSMEs and labor-intensive manufacturing, extending the Mudra loan limit from Rs 10 lakh to Rs 20 lakh and supporting the setup of 50 multi-product food irradiation units in the MSME sector.

India’s “Make in India” campaign aims to transform the country into a manufacturing powerhouse by improving infrastructure, easing regulatory processes, and offering incentives to both domestic and international companies. These efforts have led to substantial progress in enhancing India’s business environment, attracting foreign direct investment, and creating a favorable landscape for manufacturing.

The report also highlights the development of industrial corridors and special economic zones (SEZs), designed to provide world-class infrastructure and competitive costs. These zones play a crucial role in attracting global manufacturers to set up operations in India.

India’s large and skilled workforce, coupled with government-led skill development programs, ensures that the country meets the demands of modern manufacturing. Digital transformation and the adoption of advanced technologies like AI, robotics, and IoT are also boosting efficiency and reducing costs in the manufacturing sector.

Lazard’s report underscores India’s strategic geographical location, offering a gateway to major global markets in Asia, Europe, and Africa. Extensive trade agreements further enhance India’s appeal as a manufacturing destination.

While bureaucratic red tape, inconsistent policy implementation, and infrastructure bottlenecks remain challenges, the overall outlook is optimistic.