Boosting manufacturing to help India become developed economy: AIMA prez

India's per capita Gross Domestic Product (GDP) needs to multiply about 9 times over the next 25 years, Dempo said while speaking at the National Management Convention session of AIMA

India needs to increase the share of manufacturing to one-third of its GDP to become a developed economy by 2047, AIMA President Shrinivas Dempo said on Tuesday.

India's per capita Gross Domestic Product (GDP) needs to multiply about 9 times over the next 25 years, Dempo said while speaking at the National Management Convention session of All India Management Association (AIMA) here.

As per the Reserve Bank of India (RBI), the Indian economy needs to grow at an average rate of 7.6 per cent till 2047 to become a developed country, he said.

"To get there, the Indian economy needs a rebalancing by raising the share of manufacturing in its output to about one-third. All this requires an exponentially rising investment in infrastructure, technology, education, skills, health and a major realignment of management and governance," Dempo, the Chairman of Dempo Group of Companies, said.

India is the fifth-largest economy, with a GDP of over USD 3.7 trillion. The share of manufacturing in total gross value added is around 16 per cent of GDP.

The recently concluded G20 Summit has made a big impression on the world, he said, adding that the leaders of the member countries have realised India's progress and future potential.

India's economy is the key to its place and role in the world, he said.

India is already the fifth-largest economy and is about to become the third-largest. The country is moving in the right direction and its progress is gathering momentum... it has plenty of headroom for growth, Dempo said while addressing the session, which was attended by hundreds of business leaders.

"The world is looking at India's new status... Investors and businesses are fascinated by India's consumption potential.

"India is also expected to have nearly 1.4 billion people of working age in 2030. Given the mismatch between the available workforce and the economy's labour absorption capacity, India is also looking extremely attractive for production," he said.