India on course to become world’s second largest economy by 2050, says Gautam Adani

• Adani said within the next decade, India will start adding $1 trillion to its GDP every 12-18 months.
  
• India’s median age would be just 38 years even in 2050, and over this period the population would grow by 15% to 1.6 bn but the per capita income would accelerate by 700% approximately to $16,000.
  
• According to the world’s third richest man, the style of capitalism that drives growth for the sake of growth and ignores the social fabric of the society is rightfully facing its greatest pushback ever.
  

Billionaire Gautam Adani, founder and chairman of the Adani Group, made a strong pitch for India in a multipolar world, where globalisation and the old style of capitalism was facing its greatest pushback ever. In his keynote address, Adani said that given the pace of reforms and execution, India was on track to clock a GDP of $30 trillion by 2050 and possibly a stock market capitalisation at $45 trillion. He highlighted three key factors that would act as enabling factors in place for this growth — demographic dividend, digitalisation and the transition of the economy to green sources of energy.

Morgan Stanley in its strategy report earlier this month said these very factors had put the foundations of a New India.

The United States of America, Gautam Adani said, was a $23 trillion economy with a market capitalisation of $45-60 trillion. The nominal dollar based GDP narrative does not paint the real potential of India, even though in absolute growth number for India will be greater than any other nation between today and 2050.

While it has taken India 58 years to get to its first $1 trillion in GDP, it took 12 years to add another $1 trillion. The last trillion has been added to India’s GDP has been added in only five years. Adani said within the next decade, India will start adding $1 trillion to its GDP every 12-18 months.

India has to be seen in this context. India will achieve this incredible growth without compromising on its democracy and diversity said Adani. The audience cheered on as Adani said that well before 2030, India would be the world’s third largest economy and, thereafter, the world’s second largest economy by 2050.

A set of interconnected factors would drive India’s growth over the next three decades. The demographic dividend would drive consumption and accelerate the growth of a tax paying nation he said. India’s median age would be just 38 years even in 2050, and over this period the population would grow by 15% to 1.6 bn but the per capita income would accelerate by 700% approximately to $16000.

The Second dimension, Adani said, that would act as an enabling factor was entrepreneurship and digitalisation. Both these factors are strongly linked and can be combined to create a dynamic innovative environment. He said, “Our digitised India will also transform healthcare, education and skill development and create a most equitable society.”

Gautam Adani, whose Adani Group is looking to invest $70 bn over the next decade in green energy, dwelled a lot on the energy transition and it’s potential for India. He said the third dimension that would prove to be a powerful transformation for India was in the space of energy transformation. “Energy poverty is today developing world’s greatest challenge and this gap will need to be mostly filled with renewable energy,” he explained.

By 2050 India will need 400 more units of energy than it currently consumes. “While this may seem challenging, the technology advancement that we are seeing is expected to make this possible,” Adani said.

The combination of solar and wind power coupled with green hydrogen opens up unprecedented possibilities for India. “Cooling the planet down will be one of the most profitable businesses and largest of job creators over the next several decades,” Adani said.

Addressing the World Congress of Accountants at the Jio Convention Centre in Mumbai on Saturday, Adani said super powers of this multipolar world are those that take responsibility to step in and help others in a crisis and not bully other nations into submission. ”The style of capitalism that drives growth for the sake of growth and ignores the social fabric of the society is rightfully facing its greatest pushback ever. It is in such a multipolar world that the foundation of India, increasing economic might coupled with its culture and beliefs becomes relevant as it takes its journey to becoming an economic superpower which combines monetary growth with social growth all within the bounds of a democratic society.”
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