The country’s young demographic profile is another key strength. With an average age of 29 years, India has one of the lowest dependency ratios globally, indicating fewer dependents per working individual.
It noted that “With an average age of 29, India has one of the world’s lowest dependency ratio, while the same for peers like China and Europe is on a rising trajectory”.
Meanwhile, dependency ratios in countries like China and across Europe are on the rise, posing economic challenges for these regions.
The report also highlighted the impact of rising income levels on consumption patterns. Household growth in India is outpacing population growth, driving discretionary spending faster than non-discretionary spending. This indicates a shift towards higher-value consumption, reflecting the rising affluence of Indian households.
On the taxation front, personal income tax collections in India have consistently exceeded corporate tax collections since FY21, reflecting the growing contribution of individuals to the economy.
The report outlined that the country’s unique position of rapid income growth, low household debt, and a young workforce positions it as a global economic powerhouse, driving not just domestic but also international growth in the coming decades.