New Delhi, Jun 27: A strategic collaboration in areas including clean and renewable energy, climate finance, Digital Public Infrastructure, trade and supply chain resilience as well as healthcare and pharma will drive a mutually beneficial growth trajectory between India and the G7 advanced countries, according to a study released here on Thursday.

The study released by the PHD Chamber of Commerce and Industry also mentioned the importance of maritime and Indo-Pacific security as a strategic factor that further cements the relationship between India and the G7 countries.

The report highlighted that India's merchandise trade with G7 countries has surged by 61 per cent, rising from $154 billion in FY 2020–21 to $248 billion in FY 2024–25, maintaining a steady trade surplus. This reflects India's growing export competitiveness as indicated by the commodity net export price index, bolstering its external sector resilience, the report pointed out.

"India's consistent real GDP growth makes the country a key growth driver for the world economy. The transformative reforms, including GST, Insolvency and Bankruptcy Act, Production Linked Incentive Scheme, growing digital infrastructure (Aadhaar, UPI) and 'Make in India' are strengthening India's ascendancy in the World," said Hemant Jain, president, PHD Chamber of Commerce and Industry.

With an average real GDP growth of more than 8 per cent from 2021 to 2024, India has consistently outpaced all G7 members. IMF's 2025 projections indicate that India will maintain an average growth trajectory above 6 per cent through 2029, supported by robust domestic demand, sound macroeconomic fundamentals, and its demographic dividend.

In terms of purchasing-power-parity (PPP) terms, India's share in global GDP has surged from 7 per cent in 2020 to 8.3 per cent in 2024, and is anticipated to exceed 9 per cent by 2029, the report points out.

A crucial underlying factor is the demographic divergence between India and the G7. India's working-age population (15–64 years) is projected to increase in the coming years, with over 68 per cent of its population currently between 15-64 years. This demographic dividend supports labour supply expansion, boosts domestic consumption, and enhances the innovation ecosystem through a vibrant startup culture and rising tertiary education enrolment, the report states.

Further, India's share of the total population aged 65 and above constitutes less than 5 per cent (2025). Conversely, G7 nations are confronting demographic headwinds as their share is more than 10 per cent, highlighting rapidly ageing populations, shrinking labour pools, and rising old-age dependency ratios.

By 2030, this share is expected to double or more than double for the G7 economies. This is likely to slow potential output, reduce consumer demand, and increase fiscal burdens related to pensions and healthcare, the report further states.

Prime Minister Narendra Modi, in his address at the G7 summit, underscored India's leadership in clean energy transition, climate action, and digital innovation. Key global initiatives led by India - the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance - are shaping a greener, more inclusive world.

In the technology and digital governance space, India highlighted its commitment to a human-centric and ethical approach to AI, showcasing initiatives like BHASHINI and Digital Public Infrastructure (DPI) as global models, he said.

The Prime Minister urged for global cooperation on AI governance, resilient tech supply chains, and curbing the misuse of emerging technologies.

(IANS)

read more Business News

Argus English | argus english | Odisha Latest News, Breaking News, Trending News, Live TV