Indian businesses can generate $9.82T economic value by 2035
What's the story
A recent report by PwC India has revealed that businesses in India have the potential to generate $9.82 trillion in economic value by 2035. The study, titled "Navigating the Value Shift," highlights how a shift from sector-based models to domain-led ones could unlock this potential. The change would involve addressing fundamental human and industrial needs across nine growth domains, including manufacturing, construction, and healthcare.
Economic growth
India's GVA to grow from $3.39 trillion by 2023
The report projects India's total gross value added (GVA) to grow from $3.39 trillion in 2023 to $9.82 trillion by 2035, at a compound annual growth rate (CAGR) of 9.27%. GVA is a measure of the value of goods and services produced in an economy, which is used as an indicator of economic performance and productivity after adjusting for taxes and subsidies.
Strategic guidance
Report introduces a new framework focusing on 'domains'
The report introduces a new framework that focuses on "domains" or broad areas of human need, such as how we live, move, care, build, and power society. These domains reflect how value is being created in an economy and are shaped by climate change, demographic shifts, and technological disruption. Each domain brings together multiple industries and encourages cross-sector collaboration to deliver integrated solutions.
Business adaptation
Businesses must adopt a domain-led lens for sustainable growth
Sanjeev Krishan, Chairperson of PwC in India, noted that 40% of Indian CEOs have entered at least one new sector in the past five years. Half of them have generated up to 20% of their revenue from these new ventures. He emphasized that while businesses are adapting to these shifts, they must move beyond ad hoc diversification and adopt a domain-led lens for sustainable growth.
Growth sectors
Report identifies 9 domains of economic growth
The report identifies nine domains, including manufacturing, construction, healthcare, and how we move. The "How we make" domain could be a major contributor to India's economic growth. It could grow from $945 billion in 2023 to about $2.7 trillion in GVA by 2035, driven by digital innovation and automation. The "How we build" domain is also witnessing rapid transformation as technology reshapes construction and infrastructure industries.
Sectoral innovation
Example of telecommunications sector
The telecommunications sector is a prime example of how domain-based thinking can open up multiple growth opportunities. Beyond connectivity, telecom companies are enabling smart mobility, telehealth, and wearables, securing food supply chains with blockchain authentication, and connecting broadband to energy infrastructure. These applications span across several domains, creating new value pools through ecosystem collaboration.
Strategic framework
Report offers 'glidepaths and guardrails' for entering new domains
The PwC report provides a structured framework with "glidepaths and guardrails," strategic steps and risk mitigators for entering new domains. These include mapping ecosystem partners, bridging capability gaps, setting up intelligent foresight engines, and developing clear entry and exit strategies. Raghav Narsalay, Partner at PwC India, said their research offers both strategic direction and a framework for businesses to engage creatively with growth opportunities they may not have necessarily identified.