NE BUSINESS BUREAU
NEW DELHI/MUMBAI, SEP 5
After surpassing the UK in December 2021 to become 5th largest economy, India is expected to become world’s third largest economy by 2029 due to the path taken by the country since 2014, SBI Ecowrap report said. The share of India’s GDP is now at 3.5 percent, as against 2.6 per cent in 2014 and is likely to cross 4 percent in 2027, the current share of Germany in global GDP.
India has undergone a large structural shift since 2014 and is now the 5th largest economy.
Interestingly, India had surpassed the UK as the 5th largest economy as early as December 2021 itself and not recently as is being claimed.
“The path taken by India since 2014 reveals India is likely to get the tag of 3rd largest economy in 2029, a movement of 7 places upwards since 2014 when India was ranked 10th. India should surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth,” the report said.
- India has undergone a large structural shift since 2014 and is now the 5th largest economy surpassing UK in 2021 December.
- In 2014, the country had 11 lakh km of optical fiber. Now the length of optical fiber laid in the country has crossed 28 lakh km.
- Under the PM Kisan Samman Nidhi, about two lakh crore rupees has been transferred to the bank accounts of more than 11 crore farmers of the country.
“In coming days India is likely to be the beneficiary as China slows down in terms of new investment intentions,” the report added.
India’s GDP growth in Q1FY23 was 13.5 percent. At this rate, India is likely to be the fastest growing economy in the current fiscal. Interestingly, even as estimates of India’s GDP growth rate for FY23 currently range from 6.7 percent to 7.7 percent, we firmly believe that it is immaterial.
“In a world that is ravaged by uncertainties, we believe 6 to 6.5 per cent growth is the new normal. Nevertheless, we make a passionate urge to update the IIP basket that is composed of a 2012 set of products and is hopelessly outdated.”
India surpasses UK to become world 5th largest economy
In the last three months of 2021, India surpassed the United Kingdom to become the world’s fifth-largest economy. India increased its lead in the first quarter, according to the IMF’s figures calculated on the basis of US dollars. The size of the Indian economy in “normal” cash terms for the three months ending in March was USD 845.7 billion, on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. According to the IMF report, the UK had a market value of USD 816 billion.
Just days ago, the Indian government had said that it is expecting the economy to grow at 7-7.5 per cent in 2022-23, in line with its projections made at the beginning of this financial year. Finance Secretary T V Somanathan had remarked, “I am not going to make a prediction more accurate than the RBI…But I am saying that today’s figure in no way is throwing us off course or what was expected and what we continue to expect. It is fully consistent with that expectation of somewhere in the region of 7-7.5 per cent real GDP growth. It is fully consistent with that.”
This Year, India exported goods worth $670 billion i.e. 50 lakh crore rupees. Overcoming every challenge, India made a new record of merchandise export of $418 billion i.e. 31 lakh crore rupees.
in the last eight years, more than 100 billion-dollar companies have been created and new companies are being added every month. The valuation of these unicorns created in the last eight years is about 150 billion dollars today, that is, about 12 lakh crore rupees.
It took us around 800 days to reach the first 10,000 start-ups after 2014. It took less than 200 days for 10,000 new start-ups to join this ecosystem recently. In the last eight years, we have grown from a few hundred start-ups to 70,000 today. These start-ups are spread throughout several states as well as smaller cities of India. Moreover, approximately there are more than 50 different types of start-ups associated with different industries. These are spread across every state and more than 650 districts of the country. About 50 percent of the start-ups are in tier 2 and tier 3 cities.
Digital revolution is an example of the speed with which India has acted over the years. There were only 6.5 crore broadband subscribers in our country in 2014. Today their number has exceeded 78 crores.
In 2014, one GB of data used to cost around Rs 200. Today its price has come down to Rs 11-12.
In 2014, the country had 11 lakh km of optical fiber. Now the length of optical fiber laid in the country has crossed 28 lakh km.
The government has started a production linked incentive PLI scheme worth about Rs 2 lakh crore to step up manufacturing in India.
In the last seven-eight years, the Government of India sent money into the accounts of the beneficiaries with a single click through the DBT (Direct Benefit Transfer). The amount that we sent through DBT is more than Rs 22 lakh crore.
We are focusing on multimodal connectivity supporting each other. Sagarmala, Bharat Mala, Parvat Mala, port-led development.
Today India is witnessing unprecedented investment in social and physical infrastructure. An environment of consensus has been created to implement the new education policy, while on the other hand, work is going on to implement the new health policy. Today, a record number of new airports are being built in India, connecting small cities with air routes. The amount of work being done on Metro connectivity in India today has never been done before. A record number of new mobile towers are being installed in India today and 5G is knocking on the doors of India. A record number of villages are being connected with optical fiber in India today.
We have full faith in the people of the country that whatever technology will be brought for good governance, it will be accepted and appreciated by the people of the country. The result of this public trust is in front of everyone in the form of the world’s best digital transaction platform UPI i.e. Unified Payment Interface. 40 percent of global digital transactions are being done in India. Today, the street vendors and the countrymen in far-flung villages to the localities of cities are easily doing transactions ranging from Rs 10-20 to lakhs of rupees
Inclusive Development
Under the PM Kisan Samman Nidhi, about two lakh crore rupees has been transferred to the bank accounts of more than 11 crore farmers of the country.
Today, 3 crore poor people of the country have got their pucca and new houses, where they have started living. Today, more than 50 crore poor people of the country have the facility of free treatment up to Rs 5 lakh. Today, more than 25 crore poor people of the country have accident insurance and term insurance of Rs 2 lakh each. Today, about 45 crore poor people of the country have Jan Dhan bank accounts.
Under the PM SVANidhi, 35 lakh street vendors of the country have received financial help.
Loans worth more than Rs 20 lakh crore have been given to small entrepreneurs across the country under the Mudra Yojana. Among the borrowers there are about 7 crore such entrepreneurs who have started a business for the first time and have become new entrepreneurs. That is, with the help of Mudra Yojana, more than 7 crore people are associated with self-employment for the first time. 70 per cent loans to women entrepreneur.
The ‘Emergency Credit Line Guarantee Scheme’ has helped lakhs of small industries. According to a study, this scheme saved the jobs of about 1.5 crore people.
MSME means – Maximum Support to Micro Small and Medium Enterprises!
To strengthen the MSME sector, the government has increased the budget by more than 650 per cent in the last eight years.
More than 11 crore people are directly or indirectly connected with this sector. That’s why MSMEs are very crucial for providing maximum employment today.
So, when the biggest crisis in 100 years had hit us, we decided to save our small enterprises and give them a new strength. Under the Emergency Credit Line Guarantee Scheme, the central government has ensured Rs 3.5 lakh crore to the MSMEs.
According to a report, about 1.5 crore jobs were saved due to this.
Ease of Doing Business
The country is now changing, reforming and simplifying such labour laws. Keeping this in mind, 29 labour laws have been converted into four simple labour codes.
By reducing more than 30,000 compliances, abolishing more than 1500 laws, decriminalizing many provisions of the Companies Act, it has been ensured that the companies of India not only grow but achieve new heights.
GST has now replaced the web of many taxes at the Centre and the states. The country is also witnessing the result of this simplification. Now it has become normal for GST collection to cross one lakh crore rupees every month.
One Nation
We have put emphasis on policy stability, coordination and ease of doing business. In the past, we have abolished thousands of compliances and old laws. We have worked to strengthen India as a nation with our reforms. Be it One Nation-One Tax GST, One Nation-One Grid, One Nation-One Mobility Card, One Nation-One Ration Card, all these efforts are a reflection of our solid and clear policies.
New Interfaces unleashing innovation and entrepreneurial skills
Leaving behind this work culture that ‘the government alone knows everything and the government alone will do everything’, now the country is moving forward with the spirit of ‘Sabka Prayas’ (everyone’s efforts). Therefore, many new interfaces are being prepared in India today and platforms like BIRAC are being empowered. Be it the Startup India campaign for start-ups, IN-SPACe for space sector, iDEX for defence start-ups, Indian Semiconductor Mission for semiconductors, Smart India Hackathon to encourage innovation among youth, the Biotech Start-Up Expo, the government is bringing together the best minds of the industry on a single platform through innovative institutions and promoting the spirit of collective efforts. The country is benefiting in a big way from these efforts. The country gets new breakthroughs from research and academia, the industry helps in what is a real world view, and the government provides the necessary policy environment and infrastructure.
Removing every obstacle being faced by the youth and is reforming continuously. Opening up the defence sector to private industry, private participation in Space industry, formulating a modern drone policy, preparing geospatial data guidelines, facilitating ‘Work from Anywhere’ in the Telecom-IT sector, the government is working in every direction. It is our endeavor to create a maximum Ease of Doing Business environment for the private sector of India, so that the private sector of the country can also help the countrymen equally in the Ease of Living.
