Global Economies Vs Indian Economic Growth Model
The Indian economy is growing and a developing economy; India has the privilege of having the largest population but facing lots of challenges like unemployment, poverty, fundamental human life facilities for every citizen & so on. We have a stable and majority-gained political party in the central government; Hence lot of reforms are being executed & implemented at a fast track; The government policies, economic reforms and ecosystem of social infrastructure is well planned & implemented to the various sectors & areas in the nation.
On the other hand, Global Economies are facing many major issues since 2020 such as covid-19, Ukraine & Russia war; increase in the prices of Crude Oil, Natural Gas, Natural Resources; And sharp increase in inflation. UK is facing economic slowdown, stagnant phase & unemployment; USA is dealing with social transformation & slower economic growth; China’s narrow national & international relationship policies are not helping its growth and hence facing lots of competitive issues with other nations worldwide.
Whereas, India has a creative, innovative, progressive and growth-driven economic model named “Make in India”; India is gaining pride in achieving excellence at global markets; Indian Exports has risen sharply since few years; Indian manufactured goods, commodities, software & other services haven risen sharply with high demands at global platform.
We are sharing some information from IBEF.org website as below:
“Make in India is a major national program of Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure in the country. The primary objective of this initiative is to attract investments from across the globe and strengthen India’s manufacturing sector. It is being led by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India. The Make in India program is very important for the economic growth of India as it aims at utilizing the existing Indian talent base, creating additional employment opportunities and empowering the secondary & tertiary sectors. The program also aims at improving India’s rank on the Ease of Doing Business index by eliminating the unnecessary laws and regulations, making bureaucratic processes easier, making the government more transparent, responsive and accountable.”
“I want to tell the people of the whole world: Come, make in India. Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have skill, talent, discipline and the desire to do something. We want to give the world an opportunity that comes from India,” Prime Minister of India, Hon’ble Shri Narendra Modi said while introducing the program in his maiden Independence Day speech from the ramparts of the Red Fort on August 15, 2014. The initiative was formally introduced on September 25, 2014 by Hon’ble Shri Narendra Modi at Vigyan Bhawan, New Delhi, in the presence of business giants from India.
“The focus of the Make in India program is on 25 sectors. These include: automobiles, automobile components, aviation, biotechnology, chemicals, construction, defense manufacturing electrical machinery, electronic systems, food processing, IT & BPM, leather, media and entertainment, mining, oil & gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textile and garments, thermal power, tourism and hospitality and wellness.
The dedicated website for this initiative (www.makeinindia.com) not only showcases the 25 sectors but also puts focus on opportunities, policies and Ease of Doing Business. The Investor Desk is an integral part of this website, which aims at providing all information/data analysis to investors across sectors. Please visit www.makeinindia.com for more details.”
Above 3 paragraph source from: https://www.ibef.org/economy/make-in-india.
Indian Economic Trends duration of 2021-22 & 2022-2023:
Indian economy was reformed in the decade of 90s by liberalization, globalization & privatization; it was open-door policy for developed countries; Indian economy got biggest transformation with information technology since 2000; We are in the era of digitization and computerization and we are going ahead towards a paperless work culture; There was a global economic depression, regression and inflation effect in 2008; And in 2020 Indian economy, like global economies, was badly impacted by Covid-19.
The major economic trends in Indian economy are as below:
Following a contraction of 7.3% in 2020-21, the Indian economy grew by 9.2% in real terms in 2021-22.
GDP was expected to grow in real terms by 8-8.5% in 2022-23.
The coming year is expected to see an increase in private sector investment with the financial system in strong shape to support the country’s economic recovery.
The projection is equivalent to the World Bank's & Asian Development Bank's recent predictions of 8.7% and 7.5% real GDP growth for 2022-23, respectively.
According to the IMF's latest World Economic Outlook projections, India's real GDP will grow at 9% in 2021-22 and 2022-23, and 7.1% in 2023-2024, making it the world's fastest growing major economy for all three years.
In 2021-22, agriculture and allied industries are predicted to grow by 3.9%, industry by 11.8%, and services by 8.2%.
In 2021-22, demand for consumption was expected to increase by 7.0%, Gross Fixed Capital Formation (GFCF) by 15%, exports by 16.5%, and imports by 29.4%.
Indicators of macroeconomic stability imply that the Indian economy was well positioned to meet the challenges of 2022-23.
In 2022-23, a combination of large foreign exchange reserves, continued foreign direct investment, and expanding export revenues provided an effective cushion against a potential global liquidity withdrawal.
The "second wave's" economic effect was significantly less than the full lockdown in 2020-21, but the health consequences were far more severe.
The Indian Government's unique reaction included safety nets to soften the impact on vulnerable sectors of society and the business sector, a major increase in capital investment to promote growth, and supply-side reforms to ensure long-term expansion.
In a climate of severe unpredictability, the government's flexible and multi-layered reaction was based in part of an "Agile" framework that employs feedback loops and the usage of 80 High Frequency Indicators (HFIs).
In 2021-22, agriculture and allied industries were predicted to grow by 3.9%, industry by 11.8%, and services by 8.2%.
Source of Information: https://www.ibef.org/economy/economic-survey-2021-22.