India’s young workforce and urban boom to drive economic transformation by 2047

India’s economic future is set to be shaped by its youthful population and rapid urban expansion, with the country expected to witness transformative growth over the next two decades. As the world’s fourth-largest economy at \$4 trillion today, India is projected to near a \$30 trillion economy by 2047, propelled by its demographic strength and infrastructure ambitions.

Speaking at a session on the sidelines of the International Air Transport Association (IATA) gathering in New Delhi, officials highlighted how India’s youthful population will play a crucial role in shaping its economic future. While much of the Western world, Japan, and even China grapple with ageing societies, India’s average age stands at just 28. By the time the nation marks its centenary of independence in 2047, it is expected that the average age will only rise modestly to 35, providing a powerful demographic dividend. G20 Sherpa Amitabh Kant, who addressed the event, described India as a “country of baby boomers,” underscoring how this advantage will differentiate it from global peers in the coming decades.

Alongside its demographic edge, India faces the urgent task of managing unprecedented urban growth. Projections suggest that about five million people will move into cities each year, necessitating the creation of approximately 500 new cities over the next 50 years. Officials noted that this scale of urbanisation would be akin to building the equivalent of two new Americas, or adding a new Chicago every five years.

The country’s aviation infrastructure is also set for a major upgrade, with plans to expand from the current 150-plus operational airports to around 400 in the years ahead. This, coupled with the growing ambition of domestic carriers like IndiGo and Air India to expand their long-haul international operations, signals a strategic push to position India as a competitive player in global aviation markets.

With favourable demographics, an expanding infrastructure network, and a rising consumer base, India is poised to consolidate its place among the world’s leading economies by 2047 — a future shaped as much by opportunity as by the scale of the challenges it will need to navigate.