Ever since Narendra Modiji became the Prime Minister of India, the country has been reaching new levels of development. India's economy is growing rapidly like it never has before. Both the Reserve Bank of India (RBI) and the International Monetary Fund (IMF) have said that India's economy will keep growing, which makes people feel good about India's future. In fact, India is still the fastest-growing economy in the world. Many groups, both in India and around the world, think that India's economy will keep growing in the current financial year too. These groups include important organizations like the RBI and international groups like the IMF.
However, some people, for various reasons, have a habit of underestimating India's progress. They find it difficult to accept India's growing economy. Certain groups around the world are working hard to undermine India's economic success by spreading half-truths or misleading information. One of these groups is The Economist. Recently, The Economist published a report (How strong is India’s economy?. The Economist.)
that initially praised India's economy and then compared it to China's. However, the report then shifts focus to criticize Prime Minister Modi, accusing him of prioritizing his ideology and targeting Muslims instead of focusing on economic growth. Additionally, the report suggests that Modiji, being older, may not be capable of steering the country's economy in the right direction.
When Narendra Modi took office in 2014, India's economy was not doing so well. But between 2014 and 2022, something remarkable happened: India's gross domestic product (GDP) per person, which measures how much money each person in the country makes on average, went from $5,000 to over $7,000. That's a huge jump of about 40% in just eight years! According to the International Monetary Fund (IMF), India's economy is expected to keep growing at a rate of 6.5% in 2024. That's even higher than China's expected growth rate of 4.6% and the UK's expected growth rate of 0.6% in 2024, and it's better than any other big economy out there. So, India's economy is really on the rise.
"Fastest-growing major economy" has become synonymous with India in recent years. Since Prime Minister Modi took office, net foreign investment inflows have surged by an impressive 39.3%. In 2022, India achieved a significant milestone by becoming the fifth-largest economy globally, surpassing even Britain. What's more exciting is that if this growth trajectory continues, India is poised to overtake both Germany and Japan to claim the third spot in the world economy by around 2030, trailing only behind China and the United States.
At the heart of India's economic revival is the government's steadfast dedication to promoting innovation, investment, and infrastructure expansion. A shining example of this commitment is the 'Make in India' initiative, which kicked off in 2014. This initiative has been instrumental in luring foreign direct investment (FDI) and strengthening the manufacturing sector. By boosting competitiveness and generating job opportunities, 'Make in India' has propelled India's emergence as a global manufacturing powerhouse, highlighting the government's proactive approach to economic rejuvenation.
In sync with 'Make in India', the 'Startup India' program has cultivated a dynamic environment for entrepreneurship and innovation, offering vital support systems for budding startups. Through incentives like tax breaks, funding access, and streamlined regulations, the government has spurred the growth of India's startup ecosystem, fostering groundbreaking innovations across various sectors. This concerted push for innovation and entrepreneurship has positioned India as a fertile ground for technological progress and economic expansion.
Moreover, the 'PM Gati Shakti National Master Plan' epitomizes the government's commitment to improving logistical efficiency and infrastructure enhancement. By integrating diverse transportation networks and simplifying project execution, this initiative is set to unlock fresh avenues for growth and enhance India's competitiveness on the global stage. Its goal is to boost connectivity, slash transportation expenses, and facilitate the smooth movement of goods and people, thereby nurturing economic growth and prosperity nationwide.
Moreover, in the financial year 2023-24, India's defense exports soared to a remarkable Rs 21,083 crore, marking an impressive 32.5% increase from the previous fiscal year, where the figure stood at Rs 15,920 crore. What's even more staggering is the exponential growth witnessed over the past decade, with defense exports skyrocketing by 31 times since the financial year 2013-14.
This unprecedented success in defense exports can be attributed to the concerted efforts of the defense industry, encompassing both the private sector and Defence Public Sector Undertakings (DPSUs). Together, these sectors have played a pivotal role, with the private sector contributing around 60% and DPSUs contributing the remaining 40% to the overall defense exports.
Moreover, the surge in defense exports is further underscored by the significant rise in export authorizations issued to defense exporters during the financial year 2023-24. The number of export authorizations saw a notable increase from 1,414 in the previous fiscal year to 1,507 in the latest reporting period, indicating a growing interest and capability in the global defense market.
Looking back over two decades, from 2004-05 to 2013-14 and 2014-15 to 2023-24, the data reveals a staggering growth of 21 times in defense exports. Total defense exports during the former period amounted to Rs 4,312 crore, a figure that has surged to an impressive Rs 88,319 crore during the latter period.
In addition to its remarkable achievements in defense exports, India has set its sights on another ambitious goal: attracting a minimum of $100 billion in gross foreign direct investment (FDI) annually. This objective comes at a time when numerous investors and multinational corporations are seeking to diversify their investments away from China. With India emerging as an increasingly attractive destination for foreign investment, driven by its robust economic growth, demographic dividend, and conducive business environment, the country is poised to capitalize on this global trend. By positioning itself as a favored destination for FDI, India aims to not only bolster its economic prospects but also harness the potential for sustainable growth and development in the years to come.
Foreign Investments
Since Modiji assumed office in 2014, India has emerged as a magnet for foreign investment, attracting major players like Apple, Samsung, Kia, and Airbus, among others, to expand their operations within the country. This influx of foreign investment has significantly fueled India's economic growth, propelling it forward at an accelerated pace. Moreover, India is on the brink of finalizing a groundbreaking trade deal with select European nations, potentially unlocking investments worth up to $100 billion over 15 years. The European Free Trade Association, comprising Switzerland, Norway, Iceland, and Liechtenstein, has pledged substantial investments as part of this trade pact, which is nearing its conclusion. This strategic move not only fosters easier trade access for these nations but also signifies their confidence in India's economic potential.
Meanwhile, India is also making bold strides in fostering international relationships through outbound investments. In 2022, Indian firms made headlines by announcing a record-high $22.2 billion worth of foreign direct investment into Africa, signaling India's commitment to bolstering economic ties beyond its borders. Business groups foresee even greater opportunities on the horizon, with the Confederation of Indian Industry advocating for a significant increase in Indian investments in Africa, aiming to elevate it from $74 billion to $150 billion by 2030. Initiatives like the India-Nigeria Business Council, launched recently to tap into bilateral trade and investment opportunities, underscore India's proactive approach in building stronger economic relationships globally. Through such endeavors, India not only enhances its own economic prospects but also contributes to the growth and prosperity of partner nations.
Various MoUs Signed by India
India's commitment to international collaboration extends beyond economic ventures to encompass various sectors through Memoranda of Understanding (MoUs) with partner countries. Notably, in June 2019, India inked a significant Space cooperation MoU with Tunisia, focusing on the exploration and peaceful use of outer space. Signed at the ISRO Headquarters, this agreement underscores India's dedication to fostering cooperative efforts in space exploration for mutual benefit. Such collaborations pave the way for technological advancements and knowledge exchange between nations, contributing to global scientific progress.
Similarly, in the realm of education, India and the United Arab Emirates (UAE) forged a MoU last year aimed at strengthening ties between their educational institutions. Facilitating student and faculty exchanges, joint research ventures, curriculum development, and participation in educational activities, this agreement fosters a robust partnership in the field of education. By facilitating cross-cultural learning experiences and knowledge sharing, India and the UAE aim to enrich their educational landscapes and promote academic excellence on a global scale.
Furthermore, Prime Minister Narendra Modi's recent approval of a MoU between India and USAID/India marks a significant step towards achieving sustainability goals. This agreement aims to support the Indian Railways in attaining net-zero carbon emissions by 2030, aligning with India's commitment to environmental conservation and sustainable development. Through strategic partnerships and collaborative efforts, India is poised to achieve transformative milestones in various sectors, contributing to its advancement on the global stage.
India has eliminated 'extreme poverty'
India has achieved a remarkable milestone by officially eradicating 'extreme poverty,' as highlighted in a report authored by Surjit Bhalla and Karan Bhasin. This achievement is evidenced by a significant decline in the headcount poverty ratio and a notable increase in household consumption across the nation. The report suggests that India is now ready to transition to a higher poverty line, aligning with global standards. This transition presents an opportunity to reform existing social protection programs, with a focus on accurately identifying beneficiaries and providing enhanced support to those most in need. The success in poverty reduction is attributed to the government's robust policy emphasis on redistribution, fostering strong inclusive growth throughout India in the past decade. This significant milestone marks a pivotal moment in India's journey towards ensuring greater welfare and prosperity for all its citizens.
Conclusion
The Indian economy is thriving, and all signs point to continued success in the years ahead, thanks to the swift decision-making and effective strategies of the Modi government. So, the claims that PM Modi is overly focused on targeting Muslims or that PM Modi's age can hinder progressive economic steps are simply unfounded. In fact, India's economic achievements under the Modi administration speak volumes. The nation has made significant strides and is poised for even greater wonders in the future. With a government committed to driving growth and prosperity, India's economic trajectory remains promising, promising a bright future for all its citizens.
Comments