India: Structural growth challenges and AI transition – BNP Paribas

BNP Paribas underscores India’s favourable medium-term growth outlook, with the IMF lifting forecasts to 6.8% per year, but stresses significant structural constraints. The report points to a modest middle class, large informal economy, weak industrial base and labour market rigidities. It warns that without faster reforms in AI adaptation and industrial development, India risks failing to complete its transition to a higher-value, more inclusive economy.