New Delhi
India is on track to become an USD 8 trillion economy by 2035, but several major challenges need addressing, according to The Great Unlock: India in 2035 report by Infosys Co-Founder Nandan Nilekani and Arkam Ventures. The report highlighted four key issues: income disparity, low formalisation, market access problems, and weak productivity.
Currently, only 13 of 788 districts contribute half of India’s GDP. The top 10 per cent of earners make nearly 60 per cent of the total income. About 200 million workers migrate to richer states for jobs. Labour productivity in India stands at just USD 7 per hour, only a tenth of the US level.
Only 15 per cent of Indian workers are formally employed, much less than in countries like Brazil and China. Most micro, small, and medium enterprises (MSMEs) also remain informal, limiting access to credit and growth opportunities.
Despite these challenges, India's digital revolution shows strong promise. Digital platforms like Aadhaar, UPI, and the Account Aggregator system have expanded rapidly. Monthly digital transactions grew from zero to 16 billion in a few years. Aadhaar reduced identity verification costs from USD 23 to just 50 cents.
New AI technologies and digital infrastructure are expected to connect the next billion Indians, helping farmers, students, and MSMEs boost productivity. By 2035, half of India’s workforce may be AI-native, with women's workforce participation rising from 25 per cent to 47 per cent.
The report stressed that India must ease capital access, support MSMEs, use AI widely, and make property assets easier to monetize to achieve its economic goals.
