Time for #DPC - Dhanda Paani Charcha
We often talk about India's growth story and its promising future of multidecades. But what fuels this optimism? Let's explore.
Based on my learning and reading, there are three key factors, the "3 D's," that are working in India's favor:
Demographic Dividend
India's median age is approximately 28 years, meaning half of the population is younger than 28. This youthful demographic profile fosters a robust domestic market, driven by a young and aspirational population eager for growth and consumption. This demographic advantage positions India for sustained economic expansion as the working-age population continues to fuel demand for goods and services.
Digitization
In June 2024, the Unified Payments Interface (UPI) in India processed 13.89 billion transactions, representing a 49% year-on-year increase from June 2023. The total value of these transactions reached ₹20.07 lakh crore (approximately USD 266 billion), marking a 36% increase from the previous year (Finclusion) (FortuneIndia). This surge in digital transactions highlights the rapid adoption of digital payments across the country. Additionally, India's affordable data rates, among the lowest in the world, have bridged the gap between Tier-1 and Tier-4 cities. This connectivity allows people from various regions to access new brands and trends, aligning their consumption patterns with global standards and aspirations.
Democracy
In the last general election, more than 968 million people were eligible to vote, making India the largest democracy in the world. This vast electorate showcases the country's democratic strength, which attracts global investors. They see India not only as a stable and robust market but also as a beacon of growth and opportunity amidst a challenging global economic landscape.
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