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Skip Navigation BREAKING China stocks see best week since 2008 on stimulus impact as most Asia markets rise India wants to be a developed nation by 2047. Here are 4 critical areas Modi can’t ignore ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Markets * Pre-Markets * U.S. Markets * Europe Markets * China Markets * Asia Markets * World Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Sports * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity * Europe Politics * China Politics * Asia Politics * World Politics Video * Latest Video * Full Episodes * Livestream * Top Video * Live Audio * Europe TV * Asia TV * CNBC Podcasts * CEO Interviews * Digital Originals Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim’s Columns * Education * Subscribe * Sign In PRO * Pro News * Livestream * Full Episodes * Stock Screener * Market Forecast * Options Investing * Chart Investing * Subscribe * Sign In Livestream Menu * Make It * select * ALL SELECT * Credit Cards * Loans * Banking * Mortgages * Insurance * Credit Monitoring * Personal Finance * Small Business * Taxes * Help for Low Credit Scores * Investing * SELECT * All Credit Cards * Find the Credit Card for You * Best Credit Cards * Best Rewards Credit Cards * Best Travel Credit Cards * Best 0% APR Credit Cards * Best Balance Transfer Credit Cards * Best Cash Back Credit Cards * Best Credit Card Welcome Bonuses * Best Credit Cards to Build Credit * SELECT * All Loans * Find the Best Personal Loan for You * Best Personal Loans * Best Debt Consolidation Loans * Best Loans to Refinance Credit Card Debt * Best Loans with Fast Funding * Best Small Personal Loans * Best Large Personal Loans * Best Personal Loans to Apply Online * Best Student Loan Refinance * SELECT * All Banking * Find the Savings Account for You * Best High Yield Savings Accounts * Best Big Bank Savings Accounts * Best Big Bank Checking Accounts * Best No Fee Checking Accounts * No Overdraft Fee Checking Accounts * Best Checking Account Bonuses * Best Money Market Accounts * Best CDs * Best Credit Unions * SELECT * All Mortgages * Best Mortgages * Best Mortgages for Small Down Payment * Best Mortgages for No Down Payment * Best Mortgages with No Origination Fee * Best Mortgages for Average Credit Score * Adjustable Rate Mortgages * Affording a Mortgage * SELECT * All Insurance * Best Life Insurance * Best Homeowners Insurance * Best Renters Insurance * Best Car Insurance * Travel Insurance * SELECT * All Credit Monitoring * Best Credit Monitoring Services * Best Identity Theft Protection * How to Boost Your Credit Score * Credit Repair Services * SELECT * All Personal Finance * Best Budgeting Apps * Best Expense Tracker Apps * Best Money Transfer Apps * Best Resale Apps and Sites * Buy Now Pay Later (BNPL) Apps * Best Debt Relief * SELECT * All Small Business * Best Small Business Savings Accounts * Best Small Business Checking Accounts * Best Credit Cards for Small Business * Best Small Business Loans * Best Tax Software for Small Business * SELECT * All Taxes * Filing For Free * Best Tax Software * Best Tax Software for Small Businesses * Tax Refunds * Tax Brackets * Tax Tips * Tax By State * Tax Payment Plans * SELECT * All Help for Low Credit Scores * Best Credit Cards for Bad Credit * Best Personal Loans for Bad Credit * Best Debt Consolidation Loans for Bad Credit * Personal Loans if You Don’t Have Credit * Best Credit Cards for Building Credit * Personal Loans for 580 Credit Score or Lower * Personal Loans for 670 Credit Score or Lower * Best Mortgages for Bad Credit * Best Hardship Loans * How to Boost Your Credit Score * SELECT * All Investing * Best IRA Accounts * Best Roth IRA Accounts * Best Investing Apps * Best Free Stock Trading Platforms * Best Robo-Advisors * Index Funds * Mutual Funds * ETFs * Bonds * USA * INTL * Livestream Search quotes, news & videos * Livestream Watchlist SIGN IN Create free account India wants to be a developed nation by 2047. Here are 4 critical areas Modi can’t ignore ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Markets Business Investing Tech Politics Video Watchlist Investing Club PRO Livestream Menu Inside India INDIA WANTS TO BE A DEVELOPED NATION BY 2047. HERE ARE 4 CRITICAL AREAS MODI CAN’T IGNORE Published Wed, Jun 19 202410:01 PM EDTUpdated Thu, Jun 20 20245:40 AM EDT Charmaine Jacob@in/charmainemariajacob@charmainemjacob WATCH LIVE ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Key Points * Prime Minister Narendra Modi has an ambitious goal for India to be a developed economy by 2047, but analysts believe this is only possible if the country’s infrastructure development, manufacturing capabilities, and employment rates improve. * A Modi-led coalition won’t likely derail India’s economic and development, but the new government will now have to restore faith in the people and ensure India’s standing in the Global South remains, analysts said. India has undergone a massive infrastructure push and has made significant strides in connecting and modernizing its highways, railways and airports. Puneet Vikram Singh, Nature And Concept Photographer, | Moment | Getty Images For the last two years, Prime Minister Narendra Modi has spoken confidently about his ambitious goal to make India a developed economy by 2047. All eyes will now be on Modi and his Bharatiya Janata Party-led alliance to see if they can keep the economic momentum going and continue to improve the lives of millions in their third consecutive term in office. Confidence in the BJP has plunged. Modi’s ruling party failed to win an outright majority in the lower house of Parliament for the first time since 2014, and is now forced to rely on its allies in the coalition. “The government will have to find common ground and build consensus on multiple fronts, not just with alliance partners but also with other stakeholder groups, to push through key legislation in parliament and quell the rising anti-incumbency sentiment nationwide,” said Reema Bhattacharya, head of Asia research at risk intelligence firm Verisk Maplecroft. “A failure to do so could also result in further political setbacks for the ruling party in the next round of state elections scheduled for later in the year,” she warned. Get a weekly roundup of news from India in your inbox every Thursday. Subscribe now A Modi-led coalition won’t likely derail India’s economic and development, analysts say. However, they point out that the new government will now have to restore faith in the people and ensure India’s standing in the Global South remains. The new government has yet to outline its key priorities. Analysts, however, are predicting that these four areas will feature high on the agenda. 1. INFRASTRUCTURE PUSH India has undergone a massive infrastructure push and has made significant strides in connecting and modernizing its highways, railways and airports. Last year, consultancy firm EY projected that India will become a $26 trillion economy by 2047, and highlighted that building up the country’s infrastructure capabilities will be pivotal in making this happen. “Since Modi’s been in office, he’s done his utmost to build ports, railways, and all kinds of hardline infrastructure to make business fluid. He’s going to double down on that,” said Samir Kapadia, CEO of India Index and managing principal at Vogel Group. India still lags China in this area, and more needs to be done if it is seeking high-growth trajectory to continue attracting foreign investors. At the interim budget in February, Finance Minister Nirmala Sitharaman estimated capital expenditure will rise by 11.1% to 11.11 trillion Indian rupees ($133.9 billion) in the fiscal year 2025, largely focused on constructing railways and airports. New tetrapods being placed after the completion of the construction of a coastal road, ahead of the monsoon in Mumbai, India, on June 11, 2024. Nurphoto | Nurphoto | Getty Images But improving connectivity between cities should not be the only area of focus, noted Santanu Sengupta, India economist at Goldman Sachs. “Along with creating physical infrastructure, India needs to remain steadfast on the structural reforms ... It needs to look at land and unlock land to set up more infrastructure in terms of factories,” Sengupta told CNBC, adding that this will drive jobs growth in the sector. However, analysts highlighted the government might face pushback on this as Modi’s weakened hand could make it more tedious to acquire land for projects. “Such targets may be more difficult if state-level parties have a quasi-veto due to the coalition structure,” said Richard Rossow, senior advisor and chair in U.S.-India policy studies at the Center for Strategic and International Studies. 2. ENHANCE MANUFACTURING In the past decade, Modi has aggressively pushed for India to be self-reliant and overtake China to become Asia’s largest manufacturing powerhouse — particularly in chip manufacturing. U.S. tech giants are increasingly bringing part of their supply chains to India. The Financial Times reported in December that Apple told component suppliers it will source batteries from Indian factories for its upcoming iPhone 16. Google is also reportedly set to begin Pixel phone production in India by this quarter. Apple supplier Foxconn has announced it will ramp up investments in India, while Micron Technology is set to create the first India-made semiconductor chip by early 2025. Employees work on a mobile phone assembly line at Padget Electronics, a subsidiary of Dixon Technologies, in Noida, India, on Friday, March 22, 2024. Bloomberg | Bloomberg | Getty Images Projections from Counterpoint Research and the India Electronics and Semiconductor Association show that India’s semiconductor industry will be valued at $64 billion by 2026, a three-fold growth from $23 billion in 2019. “This will probably be the biggest breadwinner for India over the next five to 10 years,” Kapadia said. “Modi firmly believes that if India is able to be in the semiconductor manufacturing business and if he gets it right, India can become an economy that will not be fussed with.” 3. FIGHT HIGH UNEMPLOYMENT Unemployment is currently one of the biggest problem’s the world’s most populous country is facing, and a mismatch in skills is further exacerbating this issue, Sumedha Dasgupta, senior analyst at The Economist Intelligence Unit said. “There is already a mismatch between the skill level of the country’s workers and the demand for high innovation from employers. This will persist definitely over this decade, possibly into the 2030s as well,” she told CNBC. Unemployment rate in India rose to 8.1% in April from 7.4% in March, according to the Centre for Monitoring Indian Economy. A survey conducted by the Centre for the Study of Developing Societies in April, ahead of the election, showed that unemployment was the top concern for 27% of the 10,000 surveyed. More than half (62%) of those surveyed said it had become more difficult to find a job in the last five years during Modi’s second term. Construction workers in Mumbai, India, on June 5, 2024. Bloomberg | Bloomberg | Getty Images It is now up to the new coalition government to improve local education standards and skills-based training to ensure people are gainfully employed in the right sectors, analysts highlighted. “While those with advanced education and practical experience are poised to secure jobs in this sector, creating widespread, equitable employment opportunities requires a more inclusive approach,” said Vivek Prasad, markets leader at PwC India. New education policies and vocational training will “engage individuals at all levels of the manufacturing value chain, ensuring that the benefits of economic progress are shared across society,” Prasad told CNBC, adding that boosting the employment of women is paramount to driving India’s growth. 4. INCREASE FOREIGN INVESTMENTS From veteran emerging markets investor Mark Mobius to global strategist David Roche, market experts remain bullish on India. The National Stock Exchange of India has a total market capitalization of $4.9 trillion — the third largest in Asia-Pacific, according to data from the World Federation of Exchanges. India’s market cap is projected to grow to $40 trillion in the next two decades. Benchmark indexes Nifty 50 and the Sensex have been strong outperformers this year — respectively rising by 8% and 7% year-to-date, according to LSEG data. Foreign direct investments into the country needs to however pick up pace to further drive economic growth and development, analysts told CNBC. watch now VIDEO2:3402:34 Mark Mobius names the sectors in India he’s bullish on Street Signs Asia Foreign direct investments into India last year were relatively soft due to a difficult private equity funding environment as a result of high U.S. interest rates, said Goldman Sachs’ Sengupta said. “India will likely attract more FDI inflows from the U.S. once interest rates soften and the funding environment becomes easier,” Sengupta told CNBC. Ease of investing in India also “has some ways to go” in order to continue attracting foreign funds, noted Prabhat Ojha, partner and head of Asia client business at Cambridge Associates. He recommended investors pay more attention to India’s banking sector — one that now has good quality growth and capital allocation practices. “From 2017 to 2019, there was really a cleanup of Indian banks and they are in a very healthy state today,” Ojha told CNBC. Related 1. India wants to become a semiconductor powerhouse, but it can’t do it on its own 2. CNBC’s Inside India newsletter: Can India grow as fast as China did? 3. Financial services firm discusses India’s bull run 4. Will India’s lofty manufacturing ambitions bear fruit? 5. Watch CNBC’s full interview with India’s Minister of Commerce and Industry Piyush Goyal MORE IN INSIDE INDIA CNBC’s Inside India newsletter: Can India grow as fast as China did? Ganesh Rao4 hours ago India wants to become a semiconductor powerhouse, but it can’t do it on its own Charmaine Jacob watch now watch now VIDEO04:13 Financial services firm discusses India’s bull run Read More * * * * * * * * Subscribe to CNBC PRO * Subscribe to Investing Club * Licensing & Reprints * CNBC Councils * Supply Chain Values * CNBC on Peacock * Join the CNBC Panel * Digital Products * News Releases * Closed Captioning * Corrections * About CNBC * Internships * Site Map * Ad Choices * Careers * Help * Contact * NEWS TIPS Got a confidential news tip? We want to hear from you. Get In Touch * CNBC NEWSLETTERS Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. * ADVERTISE WITH US Please Contact Us * Privacy Policy * Cookie Preferences * CA Notice * Terms of Service © 2024 CNBC LLC. All Rights Reserved. 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