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
- Digitization
- 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.
Key Objectives and Goals
- Economic Growth: Elevate the manufacturing sector’s GDP contribution to 25%.
- Job Creation: Generate employment opportunities across various industries.
- Skill Development: Enhance the skill set of the Indian workforce.
- Innovation and Technology Transfer: Facilitate the transfer of advanced technologies and foster innovation.
- Ease of Doing Business: Simplify regulations and improve business infrastructure.
Impact and AchievementsSince its inception, the Make in India initiative has significantly improved the investment landscape in the country. Here are some notable achievements and impacts:
- Increased Foreign Direct Investment (FDI):
- The initiative has successfully attracted substantial foreign direct investment, with FDI inflows reaching new heights. According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), India received its highest-ever annual FDI inflow of $81.72 billion in 2020-21.
- Global Manufacturing Hub:
- Leading multinational companies across various sectors, including defense, electronics, and automobiles, have shown keen interest in setting up their production units in India. For example, major defense equipment manufacturers like Lockheed Martin and Boeing are collaborating with Indian companies to manufacture components domestically.
- Defense Sector:
- The defense sector has seen remarkable developments, including the manufacturing of the Rafael aircraft by Dassault Aviation in collaboration with Indian firms. This not only boosts local manufacturing capabilities but also enhances defense self-reliance.
- Electronics and High-Tech Industries:
- High-tech electronics companies such as Apple are planning to establish production units in India. Apple’s decision to manufacture iPhones in India signifies a strong endorsement of the country’s manufacturing potential.
- Infrastructure Development:
- Both central and state governments are working together to improve infrastructure, ease of doing business, and regulatory frameworks. Initiatives like the development of industrial corridors, smart cities, and investment in transportation and logistics are crucial components of this strategy.
Government Initiatives and Reforms
- Policy Reforms: Simplified regulatory processes, eased foreign investment norms, and introduced sector-specific policies to attract investment.
- Infrastructure Development: Creation of industrial corridors, development of smart cities, and improvement of logistics and transportation networks.
- Skill Development Programs: Initiatives such as Skill India to train and upgrade the skills of the workforce to meet industry demands.
- Innovation and R&D: Encouraging innovation through programs like Startup India, and establishing research and development centers in collaboration with global firms.
Future Outlook
The Make in India initiative aims to position India as a key player in the global manufacturing arena. The continuous efforts in policy reforms, infrastructure development, and fostering a conducive business environment are expected to sustain and enhance the momentum gained so far. As India continues to attract global investments and technology transfers, the vision of transforming India into a global manufacturing hub is steadily becoming a reality.
In conclusion, the Make in India initiative is a transformative step towards achieving substantial economic growth, technological advancement, and job creation, paving the way for India’s emergence as a dominant player in the global manufacturing sector.
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.
Digitization
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.
Key Objectives and Goals
- Enhance Transparency: Reduce corruption and black money circulation by promoting digital transactions.
- Boost Economic Growth: Accelerate economic activities through seamless and efficient financial transactions.
- Improve Governance: Streamline government services and documentation through digital platforms.
- Secure Digital Environment: Strengthen cybersecurity to protect digital infrastructure and user data.
Impact and Achievements
The push for digitization in India has led to several notable achievements and positive impacts:
- Digital Payments Revolution:
- Platforms like Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), and various mobile wallets have revolutionized digital payments. According to the National Payments Corporation of India (NPCI), UPI transactions crossed 4.2 billion in October 2021, highlighting the widespread adoption of digital payments.
- E-Governance Initiatives:
- Many government services have been digitized, including tax filing, land records, and public distribution systems. Initiatives like the Digital India campaign aim to ensure that government services are made available to citizens electronically, improving efficiency and accessibility.
- Financial Inclusion:
- Digital banking and financial services have significantly increased financial inclusion, bringing banking services to remote and rural areas. Programs like Jan Dhan Yojana have enabled millions to open bank accounts and access financial services.
- Reduction in Black Money:
- By promoting digital transactions, the government aims to curb black money and enhance tax compliance. Digital trails make it easier to track and regulate financial activities, thereby reducing illicit financial flows.
Cybersecurity and International Collaboration
As India embraces digitization, ensuring a secure digital environment becomes paramount. To bolster its cybersecurity framework, India is collaborating with Israel, a global leader in cybersecurity technology.
- India-Israel Cybersecurity Partnership:
- The India-Israel cybersecurity collaboration focuses on exchanging knowledge, technologies, and strategies to combat cyber threats. This partnership is crucial for protecting India’s expanding digital infrastructure.
- Cybersecurity Measures:
- The government is implementing robust cybersecurity measures, including setting up the Indian Cyber Crime Coordination Centre (I4C) and promoting public-private partnerships to enhance cyber resilience.
Government Initiatives and Reforms
- Digital India Campaign: Launched to ensure digital access, literacy, and governance across the country.
- Aadhaar Integration: Leveraging the unique identification system for efficient service delivery and financial transactions.
- E-Government Services: Initiatives like eSign, eHospital, and DigiLocker streamline administrative processes and reduce paperwork.
- Cybersecurity Framework: Establishing frameworks and guidelines to protect critical information infrastructure and personal data.
Future Outlook
The digitization wave is set to transform India’s economic and governance landscape significantly. Continuous efforts in enhancing digital infrastructure, promoting financial literacy, and strengthening cybersecurity will drive the country towards a more transparent, efficient, and secure digital economy. The collaboration with global leaders like Israel in cybersecurity further cements India’s commitment to safeguarding its digital advancements.
In conclusion, the digitization initiative is a critical driver for India’s economic growth, transparency, and governance reform. By fostering a secure and inclusive digital ecosystem, India is paving the way for sustainable development and global competitiveness.
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.
Ban on old currency – Effect of Demonetization
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.
Final words
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.
