Nandan Nilekani’s 4 Key Unlocks to Make India an $8 Trillion Economy by 2035
Infosys co-founder Nandan Nilekani outlined four key “Big Unlocks” to help India reach an $8 trillion economy by 2035: technology, entrepreneurship, formalisation, and access to capital. He predicts India will become the world’s top IPO market and expects one million startups by then. Digital advancements like electronic toll payments and DigiYatra are driving efficiency. India’s single labor market gives it an edge over China. However, regional economic disparities and migration trends remain challenges.
Small businesses struggle due to limited capital access. AI can drive transformation, especially through open-source models in agriculture and education. Nilekani emphasized practical solutions over broad policies, citing Aadhaar’s success as an example. Open AI models in Indian languages can scale digital progress. India’s high-volume, low-cost approach should be applied to AI. Addressing these factors will accelerate growth from 6% to 8%.
Nandan Nilekani’s 4 Key Unlocks to Make India an $8 Trillion Economy by 2035
Infosys co-founder Nandan Nilekani has outlined a strategic roadmap for India to accelerate its economic growth and achieve an $8 trillion economy by 2035. Speaking at the ArkamVC event in Bengaluru, he emphasized the need for four key “Big Unlocks” that can push the country’s growth rate from 6% to 8%. These include advancements in technology, fostering entrepreneurship, formalizing the economy, and improving access to capital.
India’s Rising Role in the Global IPO Market
Nilekani expressed confidence that India will become the world’s most preferred market for initial public offerings (IPOs) by 2035. He anticipates a significant rise in startup activity, projecting that India will have one million startups by then. He explained that the startup ecosystem will experience “binary fission,” where successful companies will inspire and give rise to new ventures, creating a continuous cycle of innovation and growth.
The Role of Digital Advancements in Economic Expansion
India’s rapid digital transformation has played a crucial role in enhancing efficiency and economic growth. Nilekani highlighted two key developments—electronic toll payments and the DigiYatra initiative. The adoption of digital toll collection has streamlined travel, reducing congestion and improving overall transportation efficiency. Additionally, DigiYatra, which has facilitated seamless airport experiences for 14 million passengers since December 2022, is a testament to India’s growing digital infrastructure.
He also pointed out that India operates as a unified labor market, a major advantage over countries like China, where labor markets remain fragmented. This single-market approach fosters mobility and economic opportunities across different regions, contributing to a more dynamic workforce.
Addressing Regional Disparities and Migration Trends
While discussing economic trends, Nilekani acknowledged that regional disparities in GDP and fertility rates continue to shape India’s workforce. He noted that large-scale migration is occurring across different regions due to income variations and employment opportunities. These shifts are significantly impacting labor dynamics and regional economies.
One of the major obstacles to sustained economic growth, he observed, is the lack of access to capital for small businesses. He stressed that unless this challenge is addressed, small enterprises will struggle to scale, limiting their potential to contribute to India’s overall economic expansion.
The Role of AI in India’s Future
Turning to artificial intelligence, Nilekani underscored the importance of developing open-source AI models tailored to India’s diverse digital ecosystem. He emphasized that AI solutions should support Indian languages and be implemented at scale, particularly in key sectors like agriculture and education.
He drew parallels with India’s Digital Public Infrastructure (DPI), which has thrived on a model of “high volume, low cost.” He believes the same principle should be applied to AI, ensuring that these technologies become widely accessible and drive innovation across multiple industries.
Practical Solutions Over Broad Policy Changes
Rather than advocating for sweeping policy reforms, Nilekani stressed the importance of targeted and practical solutions. He cited Aadhaar as a prime example of how focused innovation can transform an entire sector. Just as Aadhaar revolutionized identity verification, similar strategic interventions can unlock new economic opportunities and propel India toward its ambitious $8 trillion goal.
By leveraging technology, strengthening entrepreneurship, formalizing industries, and expanding financial accessibility, India can chart a path toward accelerated growth and global economic prominence.
