India's economy is rivalling that of China and the U.S.

By 2040, India has emerged as a formidable global economic force, successfully catching up with economic powerhouses such as China and the United States. These three countries, collectively known as the G3, now dominate the world GDP, showcasing India's remarkable growth. This article explores the key factors that have propelled India's ascent, including cultural, economic, and demographic trends, while also highlighting the challenges it faces in the coming decades.

One of the primary drivers of India's economic growth is its youthful and expanding population, which has become the world's largest, reaching a staggering 1.6 billion people. With an average age of just 34, India benefits from a large workforce that is productive and dynamic. In contrast, China's aging population, with an average age of 46, has seen its working population decline, creating a unique advantage for India.

India's rapid development in the service sector has contributed significantly to the global knowledge-based economy. Simultaneously, China's growth rate has slowed as its economy matures. India's market-based economy, integrated within a liberal democracy, has allowed it to navigate disruptive challenges more effectively than its planned economy counterpart in China. As a result, India has managed to sustain a consistent growth trajectory, boosting its global economic standing.

The Indian rupee has emerged as a strong contender to challenge the Chinese renminbi as the world's dominant currency. With a growing influence on the global stage and robust military capabilities, India has secured a permanent seat on the UN Security Council, further solidifying its status as a global player. Looking ahead, India's upcoming centennial celebration on 15th August 2047 will mark a significant milestone in its journey as an independent nation.

While India's economic rise has been remarkable, it is not without its share of challenges. Climate change and ecological impacts loom large, with neighbouring Bangladesh increasingly dependent on India for financial support and humanitarian aid as flooding worsens. Furthermore, the advent of widespread automation and technological unemployment poses a new set of challenges for India's economy. By the 2050s, India's growth may begin to stagnate, exacerbating a global crisis of unprecedented proportions.