18 growth arenas could fuel India's global rise by 2040: McKinsey

India could add up to $2 trillion in new revenue by 2030 and double its share of global output to 8-10 per cent by 2040, if it successfully develops 18 “arenas of the future” identified in a new McKinsey & Company report, ‘India’s future arenas: Engines of growth and dynamism.’

- BY S VENKAT NARAYAN

India’s weight in the world economy has already climbed from 1.9 per cent in 2008 to 3.4 per cent in 2023. McKinsey’s modelling shows the 18 high-'growth arenas, ranging from transformative sectors distinguished by rapid innovation, to heavy investment and large addressable markets, to supply about 30 per cent of India’s incremental GDP through 2040.

“Together, the arenas represent powerful focus areas for India’s next economic leap as they could capture approximately 30 per cent of India’s incremental GDP by 2040. Although precise trajectories are difficult to forecast, breakthroughs in these arenas could propel India toward its aspiration of global economic leadership,” said Rajat Dhawan, India managing partner at McKinsey & Company.