Last updated: June, 2020
Over the years, India has emerged as one of the fastest growing economies in the world and an attractive investment destination driven by economic reforms and a large consumption base. India’s GDP (at constant 2011-12 prices) is estimated to be Rs 145.65 lakh crore (US$ 2.06 trillion) for 2019-20, showing a growth rate of 4.2 percent over the previous year.
In a country like India, the seven major infrastructural factors that are most significant in accelerating the pace of economic development are: energy, transport, irrigation, finance, communication, education and health. The first five refer to economic infrastructural facilities, while the latter two relate to social infrastructure.
India has the second largest road network in the world, spanning a total of 5.5 million kilometres (kms).
With a generation of 1,561 terawatt-hour (TWh), India is the third largest producer and the third largest consumer of electricity in the world. Electricity generation in the country reached 1,252.61 billion unit (BU) in FY20. India is ranked fourth in wind power, fifth in solar power and fifth in renewable power installed capacity as of 2018.
The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign banks, 44 regional rural banks, 1,542 urban cooperative banks and 94,384 rural cooperative banks in addition to cooperative credit institutions. As on January 31, 2020, the total number of ATMs in India increased to 210,263 and is further expected to increase to 407,000 by 2021.
A host of factors has enabled this growth, which includes a highly developed financial system, infrastructure requirement and proactive Government initiatives. Domestic and foreign investment has made an impact on the country’s growth.
India is presently known as one of the most important players in the global economic landscape. The country is on a fast pace growth and is expected to become a US$ 5 trillion economy by 2022. Going by the estimates of Government of India, the country will need investment of US$ 4.5 trillion to build sustainable infrastructure by 2040.
The total Indian PE/VC (venture capital) investment could potentially be in the range of US$ 48 billion to US$ 50 billion in 2020. Government initiatives like Make in India and Ease of Doing Business in India is expected to boost PE/VC investments in the country.
Note: Conversion rate used in April 2020, Rs 1 = US$ 0.013123
Last Updated: August 31, 2020