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It’s not just the number that inspires. With one billion and almost 420 million inhabitants, India has more inhabitants than any other country. China, which now has a population of 1.412 billion, has slipped to second place since the middle of the month. According to estimates by the UN Population Fund UNFPA, in a few weeks time almost three million more people will live in India than in China.
India is not only booming demographically. With a nominal gross domestic product of about $3 trillion, the country has become the fifth largest economy in the world. The ambitious goal: India wants to be number three behind the US and China within a few years – and ahead of Japan and Germany. No G20 country grew more economically than India in 2022. Real gross domestic product (GDP) grew by 6.8 percent year on year, more than twice as much as in China.
hope for young people
The country has high expectations of its so-called ‘demographic dividend’, says Christian Wagner (64) of the Berlin Foundation for Science and Politics (SWP). While China and the West are dealing with an aging society, the Indian population is very young. The average age is 27 years (in Switzerland it is 42.78 years), but the average life expectancy of 67 years is low compared to western industrialized countries.
In times of global uncertainty, the cards are reshuffled. Europe wants to separate itself economically from China. New markets and production locations are also being sought in the United States. “This is a great opportunity for India,” said Wagner. But not all that glitters is gold.
iPhones are already made in India
Although India is one of the leading players in information technology and services, as well as having major software and pharmaceutical industries, half of Indians still work in agriculture. “Production of goods accounts for only 14 percent. Economic recovery and prosperity depend on exports,” says Christian Wagner. And there is too little production in India for that.
This can change quickly. Some US companies have already invested. iPhone manufacturers Foxconn, Wistron and Pegatron are already producing in India. Billion-dollar projects are also planned in India for semiconductor manufacturing. To attract foreign investors, the government of Narendra Modi (72) should invest more in infrastructure, remove bureaucratic hurdles and fight corruption, the German-India expert continued.
Literacy is only 80 percent
Despite the substantial gross domestic product, the annual income per capita in 2022 was just under $ 2,400. Poverty is prevalent in large parts of the country. “Although the country has many young people entering the labor market, there are still no jobs,” says Christian Wagner. In addition, the level of education is low. “Far too few women get the chance to work. Literacy in the country is only 80 percent». India’s labor force is cheap, Wagner continued, but for the most part underqualified. “Narendra Modi is pushing for markets to be opened, but he is also facing a lot of resistance from the people.”
Meanwhile, India is also positioning itself politically among the world powers. It is a nuclear power that arms itself. India maintains good relations with the West, but also with Russia, which sees itself as a rival to neighboring China. It belongs to the G20 group, one of the so-called outreach emerging countries participating in G7 meetings and one of the BRICS countries. In addition, India is one of the most important investors on the African continent after China.
Source: Blick
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
