India's gross domestic product (GDP) is set to rise four-fold over the next 10 years to Rs 205 lakh crore from Rs 53 lakh crore in 2008-09, according to a report from domestic brokerage house Edelweiss Capital.
The report titled --India 2020--has focused on three themes-- financial services, private domestic consumption and physical infrastructure. Within financial services, the report is optimistic about banking, broking, asset management and life insurance. In the domestic consumption space, the sectors to watch out for will be education, healthcare, media & entertainment, housing and automobiles. For physical infrastructure, power, road, railways, irrigation and water supply & sanitation will be the key drivers.
According to the report, India's per capita income will triple in the next 10 years, from the present level of $1,017 to $3,213, while the annual incremental savings will go up by 3.8 times to Rs 72 lakh crore from the present Rs 19 lakh crore. The domestic consumption expenditure too is set to triple by 2020 from the current Rs 30 lakh crore to Rs 113 lakh crore and infrastructure investments will triple from Rs 21 lakh crore in 2009 to about Rs 62 lakh crore in 2020.
Edelweiss Capital President Naresh Kothari said savings rate would also rise to 35 per cent by 2020 from the current level of 32 per cent. It is not only the savings rate, but income levels will also go up.
The number of households in the top-most income level (over Rs 10 lakh annually) will grown to 18.1 million from the current 4.4 million. The segment with less than Rs 90,000 of annual income will decline to 100 million from 133 million.