India -- on pace to become the world’s most populous country by 2025 -- has seen a boom in its middle class. Foreign investment and higher wages have pushed up GDP. Sustainability of that growth, an aging population and high debt loads are warning signs for the road ahead.
GDP growing: Higher wages and consumer debt have helped make India the fastest-growing G-20 economy, outpacing the country’s population growth.
Getting older: India’s population is living longer. An aging population will mean a smaller workforce in the future to spur expansion and fewer younger people to support the old.
Trading partners: Much of the middle class was built on services exported to the U.S. and the EU. Trade with China has more than tripled since 2005.
Outside money: Foreign investment in India accelerated since the recession, but slowed in 2016 and into 2017 due to overcapacity and operational difficulties. Tax reform and more market transparency should improve the environment for outside capital.
Bloomberg LP; Government of India Ministry of Home Affairs; United Nations; World Bank
Compiled and designed by Charles McGrath and Gregg A. Runburg