Adani says India on track to be a $ 30 trillion economy by 2050
Mumbai, November 19, 2022
Leading industrialist Gautam Adani today said that, given the pace at which the Government has been executing several simultaneous social and economic reforms, he anticipated that India would start adding a trillion dollars to its GDP every 12-18 months, putting itself well on track to be a $ 30 trillion economy by 2050 with a stock market capitalization that could exceed $ 45 trillion.
"To illustrate the relevance of these numbers, the United States today is a 23 trillion-dollar economy with a stock market capitalization ranging from 45 to 50 trillion dollars," the Chairman of the Adani Group said in his keynote address at 21st World Congress of Accountants here.
He went on to say that, in the context of purchasing power parity, India's share of global GDP would be north of 20% by the year 2050.
"I would urge you to reflect on this incredible possibility as you think of India. A country, crushed and drained by its colonial rulers, today stands on the cusp of extraordinary growth and is the only major country on a path to emerge as a high-income nation without compromising its democracy and diversity. Well before 2030, we will be the world’s third largest economy and, thereafter, the world’s second largest economy by 2050. India’s success story of combining economic growth and democracy has no parallel," he said.
The World Congress of Accountants is being held in India for the first time in its 118-year history and Adani said this reflected the wind in the sails of the world's fastest growing economy.
Adani spoke about the uncertainties in the present times and said the COVID pandemic, the Russia-Ukraine war, the challenges of climate change, surging energy prices and the acceleration in inflation had created a crisis for global leadership.
"This multilevel crisis has shattered the myth of a unipolar or a bipolar world of superpowers that could step in and stabilize global environments," he said.
"Therefore, in my view – in this emerging multipolar world – superpowers will need to be those that take responsibility to step in and help others in a crisis and not bully other nations into submission, those that keep humanity as their foremost operating principle. A superpower must also be a thriving democracy and yet believe that there is – no – one – uniform style of democracy, it must be a nation willing to share its technology to enable social development to address the universal challenges in education, healthcare, and skill development," he said.
"It is in such a multipolar world that the foundations of India’s increasing economic might, coupled with its culture and beliefs, become relevant as it takes its journey to becoming an economic superpower. One that combines monetary growth with vast social growth – all within the bounds of a democratic society," he said.
Adani spoke about India's democracy, the structural reforms in the economy and the political and administrative system and the delivery of public services balancing a long-term view with rapid execution.
He said various such factors would combine to make the next three decades the most defining period for the impact India would have on the world.
"The first dimension is our nation’s demographic dividend which will drive consumption and accelerate the growth of a tax paying society. India’s median age will be just 38 years even in 2050. Over this period, India’s population will grow by 15% to 1.6 billion, but the per capita income will accelerate by over 700% to approximately 16,000 dollars. The growth of this consuming middle class will drive an nprecedented surge in demand which, in turn, will drive a surge in private and government expenditures as well as attract the highest levels of Foreign Direct Investment," he said.
Adani said that, in the current year, India is expected to record a 15% increase and an all-time high of over 100 billion dollars of FDI, which would lay the foundation for significant job expansion. He said India's FDI inflows could touch a trillion dollars by 2050.
He also spoke about the pace of entrepreneurship and digitalisation, the growth in venture capital investments, energy transition, and so on.
"I am in no doubt that India will lead the global energy transition. This is why, the Adani Group is making a massive investment in driving - not just India’s - but the global energy transition. Over the next decade, we will invest over 70 billion dollars in this space nd build the world’s most integrated renewable energy value chain. There can be no greater sign of my confidence in the India growth story," he said.
"Along with my optimism, I do recognize that a lot still needs to be done as the economy grows. What we cannot afford to do - is fall into the classic two-speed nation trap - where the top half of the society grows prosperous - and the bottom half remains poor. Therefore, our wealth creation must focus on both quantitative factors related to per capita GDP and qualitative factors that include education, skills, and healthcare.
"As both, domestic companies and multinationals take advantage of India’s market size, we will need stronger mandates wherein corporates are compelled to rise to the challenge of enabling a social structure that recognizes the core of our culture and is aligned with our national needs. India cannot be just seen as a land for 'making and taking' profits out of its geographic boundaries," he said.
Adani said India would become the largest hub for offshore accounting services and further increase its share of the global Knowledge Process Outsourcing market. Advancements in cloud based, artificial intelligence, distributed computing, and cyber technologies make this far easier. "I foresee some of the domestic companies taking full advantage of this massive possibility given the inherent strength of our cost efficiency equation," he said.
He also said that some of the smartest CEOs or Service heads should also come from the accounting profession. "This is what I would ask accounting professionals to aspire for and inspire the younger generations of accountants that follow you," he said.
"If there ever were a time to be Indian, be in India, and associate with India - it is now. The foundation to build a new resilient India has already been laid. We will be an India that taps into our own markets to help it become self-reliant. An India with a democratic system that is based on dignity and equality. An India that has the courage to aspire. An India that is a responsible power and strong at its borders.
"The policies that have been put in place have allowed our nation to make tremendous progress over the last decade and put us firmly on a path to become an Aatmanirbhar or self-reliant India – a self-reliant society that is 100% literate, 100% healthy and 100% vocationally trained. And most importantly a self-reliant India that has forever eliminated poverty – all achieved well before 2050. This is what being a superpower should be all about," he added.