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Unlock PassageIndia's GDP Trajectory and Structural Imperatives
India's recent economic expansion presents a dual narrative of aggregate growth and persistent structural bottlenecks. On paper, the country remains one of the fastest-growing major economies globally, with GDP growth hovering between 6.5% and 7.2% in recent quarters.
The core challenge lies in the manufacturing sector's inability to absorb India's massive demographic dividend. Despite government programs like "Make in India" and Production Linked Incentive (PLI) schemes designed to spur domestic manufacturing, the sector's contribution to GDP remains stagnant around 14-16%. Instead, millions of workers leaving agriculture are bypassing the industrial sector entirely, moving directly into low-productivity services, informal retail, or construction. Economists call this premature deindustrialization.
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