India’s growth has exceeded 6% p.a. over the last four years, driven by solid growth in textile manufacturing, agriculture exports, financial and technology sectors. India’s largest sector is the services sector, contributing 53% of GDP in 2016. There are now over 5,200 technology start-ups in India; Fintech and healthcare technology sectors are growing at 31% and 28% respectively. Favourable population dynamics, recent tax policies aimed at simplifying convoluted tax laws and better integrating India’s large consumer market, should support medium term growth.
GDP per capita passed US$1800 in 2017 and is forecast to reach US$2,700 by 2022. But despite the rise in average incomes, 58% of India’s population still lives on less than US$3.10 and half of the children under five years of age suffer from malnutrition. There are 264,000 millionaires and 101 billionaires in India, with the richest 1% controlling 58% of the country’s wealth.