According to the UN's World Population Dashboard, India is now the world's most populous country as of mid-2023. With over 1.4286 billion people, the country's population is slightly larger than China's.
India also has one of the world's youngest populations, with more than half of its population under 30 and more than two-thirds of its working-age population aged 15 to 64.
Bloomberg tells us in a report that this youth advantage could be critical in unlocking economic growth by producing and consuming more goods and services, driving innovation, and keeping up with constant technological changes.
Challenges to India's Growing Market Power
Despite India's growing market power and geopolitical significance, the country ranked last out of 180 countries in the Environmental Performance Index 2022, also with one-third of the country's youth unemployed, undereducated, or unemployed.
Data also tells us that only 5% of the Indian workforce is formally skilled, and the country's schools and universities have poor infrastructure and a shortage of qualified teachers.
As India transitions to an industrialized economy, Prime Minister Narendra Modi is pushing to increase manufacturing's share of the economy from 14% to 25%.
Pushing to Increase Manufacturing
Apple
Foxconn, an Apple supplier, is reportedly planning to invest $700 million in a new plant in India to increase local production.
The iPhone component manufacturing facility would be built on a 300-acre site adjacent to the airport in Bengaluru, the capital of the southern Indian state of Karnataka. The new manufacturing plant in India is expected to create over 100,000 new jobs.
Earlier this year, the Indian Trade Minister announced that Apple intends to manufacture more of its products in India, with the goal of producing around 25% of all its products in the country.
EVs
While international car brands such as Tesla, Volvo, and Rivian are entering EV markets in various countries, India has a policy that prohibits EV makers from entering the market.
Tata Motors is currently India's only EV manufacturer, and even Tesla is having difficulty entering the Indian market due to the protectionist law.
The government's high import tariffs force international automakers to relocate to other regions, leaving India with no choice but to promote its domestic brands.
As the global electric vehicle (EV) market expands and approaches its peak, India's economy stands to benefit from the entry of new players.
The electric vehicle industry is expected to generate $457.60 billion in revenue by 2023, with a 17.02% annual growth rate. This expansion will likely result in a market volume of $858.00 billion by 2027, with unit sales reaching 16.21 million vehicles in the same year.
Chips
Earlier this year, the US-India Initiative on Critical and Emerging Technologies (iCET) announced plans for joint quantum computing and defense efforts.
The agreement reached by Washington and New Delhi does not specifically mention China. Nonetheless, it is widely assumed to be part of a broader US strategy to reduce China's influence in global supply chains.
The partnership has sparked debate in Beijing, where officials have expressed growing concern about the United States' attempt to economically and technologically isolate itself from China.
Growing Market Power
Bloomberg tells us that India's new status as the world's most populous country may strengthen its bid for a permanent United Nations Security Council seat.
India is already using its growing market power to position itself as a significant geopolitical player, maintaining close ties with the United States, Japan, and Australia.
India has also resisted joining global sanctions against Russia over its invasion of Ukraine, instead buying cheap Russian crude.
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