India was the largest economy in the world for most of the time from the 10th century BC to the 18th century AD. Around 1700 AD, the Indian subcontinent produced about 25 per cent of global industrial output. Fondly called Soney Ki Chidiya, India attracted East India Company and other European companies to trade with India. In the 21st century, we are again moving towards regaining past glory.
Corona pandemic was the most unprecedented disaster that shook the world in this century. As the world order was limping back to normalcy after Covid, the Ukraine-Russia war started. India outshined the world by efficiently handling the pandemic and a V-shaped economic recovery post-Covid, Ukraine war notwithstanding. India presented exemplary growth in these difficult times, converting global threats into opportunities.
INDIA SHINING
India is expected to be a $5 trillion economy by end of 2026, as per IMF projections. In terms of US dollars, the average Indian’s income rose by 18 per cent in 2021. It was the third fastest growth in India’s dollar prosperity in the last 50 years. Some of the key pointers of India’s envious growth are flagged below.
- Fastest Growing Economy. India is the world’s sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). The IMF has projected a 7.4 per cent growth rate for India in FY 2022-23, making India the fastest growing economy post-Covid. The present growth trajectory will see India become the world’s third-largest economy by 2024, only behind the USA and China.
- Biggest Consumer Market. With a population of 139 crores and increasing per capita income, India forms the biggest consumer market in the world. All the countries are tapping this vast consumer base and hence the relevance of India in the world market. Today, every MNC is making a beeline for India.
- Biggest Manufacturing Hub. Internationally, major western MNCs are making strategic plans to move out of China. India, with its rapidly improving infrastructure, cheap labour, educated youth and the stable democratic government provides the best and most cost-effective alternative to China. India is now also poised to become the factory of the world.
- Youngest Population. India has the youngest population in the world whereas China, Japan and Europe have started greying. With this widely acknowledged demographic dividend, and with skillful as well as diligent youth, India is attracting MNCs to set up bases in India. A young and educated workforce is India’s biggest asset today.
- Digital India. India has been leading the world’s BPO industry. Opening Global Capability Centers (GCC) by MNCs is Neo-globalis India is leading the world in this field as well. Nearly 1400 MNCs have already set up GCC in India providing jobs to 1.3 million workforces and earning a revenue of $36 billion. India has also created 100 unicorns with a value of $1 billion. NASSCOM predicts another 40 per cent increase in the next three years.
- Poor Country to Wheat Exporter. India has taken giant leaps in improving the agriculture and dairy sectors in the country. From being a food-grain importer in the last century, we have made rapid progress to becoming a wheat exporter today. Now, India is a net exporter of wheat, having exported 1.8 million tonnes of wheat to 12 countries. It is a matter of pride that we are also the largest producer of milk, pulses and jute products, and the second largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruits and cotton.
- Arms Exporter. Under the Atmanirbhar Bharat programme, India has started manufacturing indigenous ‘state of the art’ war equipment. We are also looking for exporting it to developing countries. India’s defence exports have recorded nearly an eight-fold increase between 2017 and 2022, growing from Rs 1520 crore to Rs 13000.
BEATING THE RECESSION
IMF’s latest global projections predict the world economy to plunge into the worst recession, post-Covid. While all developed countries will have negative growth, India holds a beacon of hope for the world. It is predicted that India will have no effect or least effect of recession because of its praiseworthy fiscal policies and steady economic growth.
CONCLUSION
India opened up to the world in the 21st century and progressed towards a free market economy. It soon became the fastest growing economy and will continue to be so, over the next few years. Headwinds are expected from rising inflation, supply chain disruptions and geopolitical tensions. However, there are many positive indications to keep us afloat. Exports have performed exceptionally well during the pandemic and bolstered recovery. India’s gross tax collection has beaten all expectations. The agricultural sector is booming due to repeated normal monsoons. Higher capital spending on infrastructure and asset-building projects is likely to further boost growth multipliers.
India is all set to beat the challenges and emerge as the growth engine for the world economy. Let us become partners in progress and march in harmony towards a glorious future. Incredible India @75 is destined to regain its glorious status of Soney ki Chidiya in this century.
-The writer is an avid reader and prolific writer. Post retirement, he is a Social Activist, Career Consultant and a Motivational Speaker of repute. He can be contacted at www.majgencpsingh.com
