India Poised for Long-Term Growth with Strong Demographic Dividend: Lazard Report

India is on track for sustained economic growth and aims to be a global manufacturing hub, as identified by Lazard. The country's young population and middle-class expansion are key growth drivers. Challenges remain in education and agriculture despite proactive government initiatives.

India continues to lead in economic growth and is making strides towards becoming a global manufacturing powerhouse, according to a recent report by Lazard titled 'Outlook on Emerging Markets.' The global financial firm lauded India's strong demographic dividend, noting the nation is poised to benefit from its youthful population, potentially driving growth until 2060.

'With a young and growing labour force—nearly 80 percent of its population is under the age of 50—and a rising middle class experiencing real wage growth, India has a demographic dividend tailwind,' stated the report. 'The country is projected to grow rapidly until the 2060s.' The report also highlighted the stabilizing impact of Prime Minister Narendra Modi's policies, including the digital integration of millions and significant tax reforms, over the past two terms.

Prime Minister Modi's vision to transform India into a developed nation by 2047 remains a central theme of his third term, although the report underscores ongoing challenges in education and agriculture. Efforts to bolster the manufacturing sector were evident in the Union Budget 2024-25. Finance Minister Nirmala Sitharaman emphasized support for MSMEs and labour-intensive manufacturing. The budget also increased the Mudra loan limit from Rs 10 lakh to Rs 20 lakh and announced the setup of 50 multi-product food irradiation units in the MSME sector. Provision of various services for employment and skill development were also highlighted.