India has maintained its fastest economic growth and is actively taking steps to become a global manufacturing centre, according to the global financial services firm Lazard.
In its latest report titled "Outlook on Emerging Markets," the global firm recognised India's strong demographic dividend and said that the country will reap the benefit of its younger population, helping it to drive growth until 2060.
"With a young and growing labour force--nearly 80 per cent of its population is under the age of 50--and a rising middle class with real wage growth, India has a demographic dividend tailwind, in our view, and the country is projected to grow quickly until the 2060s," the report stated.
It said, "During his first two terms, Modi's governments have stabilized India's macroeconomy, integrated millions of people into the digital economy, and implemented tax and other reforms."
The report further added that PM Modi's pledge to turn India into a developed country by 2047 will remain a key component of his third term.
However, the report highlighted that India still faces significant challenges in the education and agriculture sectors.
Notably, India has been making efforts to strengthen its manufacturing sector, as seen in the Union Budget 2024-25. While delivering her speech in parliament, Finance Minister Nirmala Sitharaman said, that this budget provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing.
To support the manufacturing sector, this year's budget provided an extension of the limit for Mudra loans from Rs 10 lakh to Rs 20 lakh. The government will provide financial support for setting up of 50 multi-product food irradiation units in the MSME sector. The government will facilitate the provision of a wide array of services to labour, including those for employment and skilling, as announced in the Union Budget 2024-25. (ANI)
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