Three things India’s economic upswing can teach SA

As a key trading partner for South Africa, India provides a road map and case study for emerging markets, particularly at a time when historical trade relationships are being upended. 

India is playing the long game. With a clear vision to become a developed nation by 2047, it is focusing on what really moves the needle: execution, infrastructure and strategic partnerships. At a time when the global economy is in flux, India isn’t waiting for stability – it is building resilience.

At a recent breakfast presentation hosted by the consul-general of India in Johannesburg and the India Business Forum, Dr V Anantha Nageswaran, chief economic adviser to the government of India, laid out a compelling case for how the country is navigating this process.

His message was clear. Economic transformation isn’t about grand promises, but about delivering, adapting and partnering smartly. If there’s one lesson for business leaders, investors and policymakers alike, it’s that India’s success story is rooted in action, which is something South Africa can learn from.

India’s growth is staggering. In 1993, the country’s GDP stood at $300-billion. Today, it’s pushing $4-trillion, having climbed from the world’s 10th-largest economy to the fifth, and in a few short years it will likely take the third spot. But here’s the real point: this isn’t just about numbers – it’s about strategic decision-making.

Read more: India and China vie for leadership of the Global South — the choice hinges on Africa’s priorities and values

A key inflection point came in 2014 when the Indian government stood at a crossroads: should India expand social welfare programmes or invest heavily in infrastructure? It chose the latter.

In contrast, South Africa has opted to expand its social grant system, which, although providing essential relief, raises questions about long-term economic sustainability. The challenge is finding a balance between immediate social support and long-term economic growth through investment in infrastructure and growth industries.

Over the past decade, India was able to build more than 70 new airports, develop thousands of kilometres of roads and rail, and use infrastructure as a catalyst to move 250 million people out of poverty. Could this be a blueprint for progress that is driven by tangible, high-impact projects rather than broad, aspirational targets?

Public-private partnerships have played a decisive role in this transformation. India understands that business is a partner in driving growth. This dynamic approach allows capital to flow efficiently, fostering both innovation and sustainability.

For South Africa, where infrastructure bottlenecks have constrained economic growth, there is an opportunity to apply similar principles. Here are three strategic priorities on India’s path to becoming a developed economy by 2047 that I believe South Africa can learn from

1. Infrastructure as a growth engine

Infrastructure isn’t just about roads and bridges; it’s about economic confidence. Investors want to see projects materialise, not just be announced.

India’s aggressive investment in hard infrastructure has spurred economic momentum, unlocking efficiencies across industries. The lesson? Build first, talk later.

To maintain this momentum, India is ramping up its investment in smart cities, high-speed rail and digital infrastructure. The goal is to ensure that economic centres remain well connected, reducing bottlenecks and enhancing productivity.

South Africa, with its well-established financial markets and industrial base, can take a similar approach by prioritising infrastructure investments that have a direct impact on economic efficiency and regional connectivity, perhaps while looking at water infrastructure improvements.

2. Energy transition: balancing growth with sustainability

It was interesting to listen to the comments from investors from some of the major banks on the subject of “clean” energy and the pressure on emerging markets from Western economies for the energy transition.

Every major Western economy had access to cheap fossil fuels during its rise, leveraging coal, oil and natural gas to power industrialisation and economic expansion. It is unrealistic to insist that emerging markets must “go green”.

India faces a similar dilemma balancing its rapid economic growth with environmental commitments while ensuring that energy remains accessible and affordable. Its approach is twofold: investing aggressively in renewable energy while maintaining a stable supply of reliable power. The global conversation must recognise that economic progress cannot be held back by impractical timelines.

For South Africa, where energy insecurity remains a significant barrier to economic growth, there is an opportunity to build on existing successes. The renewable energy independent power producer procurement programme has already demonstrated the ability to attract private investment and integrate renewable energy into the grid.

3. Skills, small and medium-sized enterprises and job creation