India’s economy continues to grow at an impressive rate, with projected annual GDP
growth of 7.5% in 2017-18. India will thus remain the fastest-growing G20 economy.
Unprecedented growth in exports in services since the 1990s has made India a global
leader in this sector. Inflows of foreign direct investment (FDI) grew at three times
the annual world average rate in the last decade, reflecting the success of efforts
to attract international investment and gradually loosen restrictions to foreign investment.
India’s economic successes are being translated into increased well-being for its
population. As GDP per capita has more than doubled in ten years, extreme poverty
has declined substantially. Access to education has steadily improved, and life expectancy
has risen. Multiple opportunities present themselves for India, and the right mix
of policies is needed to take advantage of them. India has made advances in integrating
in global value chains and developing a competitive advantage in fields such as information
and communication technology. Now is the time to secure continued progress by boosting
competition and further lowering barriers to trade and investment. Looking to the
future, it will be vital to fully tap into the potential offered by India´s young
population. This means investing in the large numbers of young people entering the
labour market. Likewise, the rapid pace of development must be matched with the upgrades
to infrastructure necessary to support it.