5. Why India Is Poised for Sustainable Long-Term Growth
Beyond cyclical economic activity, India’s long-term fundamentals appear strong.
5.1. Demographic Dividend
With a median age of about 29 years, India has one of the world’s youngest populations. This ensures:
- A large workforce
- High consumption potential
- Strong entrepreneurial energy
5.2. Reforms Supporting Economic Stability
Structural reforms introduced in the past decade continue to yield results:
- GST tax reforms
- Insolvency and Bankruptcy Code (IBC)
- Digital governance initiatives
- Agricultural and rural schemes
- Banking sector clean-up
These measures have strengthened India’s economic framework.
5.3. Financial Sector Stability
India’s banking sector has undergone massive cleanup and recapitalization, resulting in:
- Lower NPAs
- Improved credit growth
- Higher deposit inflows
- Enhanced investor confidence
5.4. Innovation and Start-up Ecosystem
India is now the world’s third-largest startup ecosystem, with thousands of startups contributing to global innovation in:
- AI and machine learning
- Fintech
- Deep tech
- Green technology
- Bio-sciences
This innovation boost adds new dimensions to long-term growth.
