This year is bringing many changes in world economy where you can see developed countries like Greece and Venezuela are collapsing and developing countries like India is becoming the fastest economy. Global economy started synchronizing, first time ever since 2010.
Due to the efforts of recently elected government, India is becoming a hub for global business. To make it possible, government is implementing various policies in both public as well as private sectors. Also the relationships with foreign countries are improving rapidly.
Instead of fighting with weapons, this world is becoming an economic war zone. The country having strongest business resources and high production rate can only hold the top position. You can see China as a live example which is developing rapidly from recent few years with the help of business sector. But now, India has become the biggest competitor due to the implementation of some new economic reforms.
As per the analysis of international media houses, it is a prediction that Indian economy will be most robust in upcoming years. Currently, US have world’s largest economy but its growth is very slow as compare to India and China. As per the current data analytical reports of world’s top GDPs by IMF, here are the latest figures:
- India – 7.2
- China – 6.6
- United states – 2.3
- United kingdom – 2
- Russian federation – 1.4
Latest reforms in Indian Economy
Currently, the government of India has introduced new policies like:-
- Make in India
- Startup India
- Implementation of Goods and services tax
- Ban on old currency
Make in India
After the launching of this great initiative in September 2014, you can see a drastic tilt of other countries towards India. Main goal of this program is to transform India in to global manufacturing hub. After the successful implementation of its policies, now global investors are showing a great interest in India. Leading multinationals including defense equipment manufacturers throughout the world are willing to setup their production units. Main goal behind this initiative is the transfer of technology so that manufacturing sector will contribute 25% in GDP by 2020. Both central as well as state governments are contributing in it through various initiatives and reforms. As a result, even the defense deals like manufacturing of Raphael aircraft has also become possible in India. Also, the high-tech electronics company apple is planning to setup its production unit within a year.
Lack of production and exports is the biggest issue of India that needs some quick reforms; as a result, you can see the introduction of startup India. The startup India program is targeting the new ideas of business that needs financial help to build up. It is a goal of this program to setup at least one startup in every single district or block in India. To initiate it in a better way, government gave relaxation in tax payment to these startups for next 5 years. It includes a complete action plan with learning and development techniques for the survival of entrepreneurs. This is the best way to bring out talent that is a great business concept.
Government is focusing on digital money transactions instead of hard cash to bring transparency in cash flow system. This is really a great initiative and people of every age group are adopting it. Not just monetary transactions, but most of the documentation work is also shifted to online portals. This initiative is the best way to boost the economy of country and decrease the flow of black money. For a fastest growing economy, a secure digital environment is very essential. To empower the cyber army, India is collaborating with Israel and bringing some latest techniques against cyber threats. The recent India – Israel partnership regarding cyber security is very beneficial for the expanding opportunities in India.
This is one of the biggest economic reforms in India that is very helpful in organizing a transparent and easy tax slab for every kind of product and service. Main goal of this reform is to eliminate indirect tax system and bring all the taxes under single transparent platform. It is an estimate that after successful implementation of this taxation system, the GDP of India will rise by 1 to 2%. It is completely changing the concept of doing business in India by minimizing cascading effect of taxation.
Due to the ban on old currency in India, the flow of black money suddenly blocked which is directly beneficial for country. After facing some temporary negative effects, Indian economy is now again on track which is clocking 7.5% growth rate. It is also an estimate that India will retain a constant growth rate of 7.7% in 2018 after bringing transparency in cash flow system.
Hence these reforms cost a lot to the citizens of country but now India is competing with world’s strongest economies. Currently, china is the main competitor but growth speed of India has gone much ahead already. Actually china is trying to dominate the world with its business strategies but India has a plus point of younger work force. Government is meeting the requirement of technology through make in India project. This ambitious project is running at rapid speed, which is clearly showing through the business proposals of various countries.
Not just production, but infrastructural growth is also increasing because of the foreign investments. Many international construction companies having well recognition are in hurry to grab the contracts of bridges, metro, mining and buildings etc. US have the strongest economy, but due to the slow growth rate, India is utilizing the opportunities. Their recently elected president Donald Trump is making some efforts like health care, infrastructure and taxation reforms. But still cannot compete with the strategy of Indian economic reforms.
Various developed countries are currently facing hard times of recession that you can see in the form of brexit and Greece economy collapse. But south Asian countries like India and china are now gaining great economic empowerment. Currently India is at the top in this race and you will see some very significant results in future.