Even though UK’s economy has been growing for over eight years straight now and has outpaced that of both Germany and France, it certainly can’t seem to keep up with India’s economic growth.
India’s economy has been growing at an annual rate of 7%, since Prime Minister Narendra Modi came into power. It is speculated that by next year, India’s economy will be one third bigger than what it was when Narendra Modi first came into power a few years ago. This is exceptional growth and a number of bodies deserve the credit for this.
Who Deserves The Credit For the Success of India?
When we look at the timeline, it looks like the PM deserves all the credit, however experts do not seem to agree with that notion.
It is pitched to be the fastest economy of the decade. Economist Dale W Jorgenson in fact predicted that India might eventually overcome China as well. But when was this change triggered?
Many say that things began to change in the early 90’s thanks to the reforms introduced. Manmohan Singh, country’s former head, walked away with the credit for the reforms introduced in 1991, but does he deserve credit for where the country stands today or is expected to go tomorrow? Hell no!
Economists Arvind Subramaniam and Dani Rodrik in one of their papers highlighter how the country’s growth rate actually started to surge in the 80’s, “with very little discernible change in trend after 1991 due to an attitudinal shift,”
As they say, “success has many fathers, but failure is an orphan.” There are many people out there willing to take the credit for India’s success, but no one party or person deserves the applause here. If there is anything or anyone that deserves credit, it is the country or its people.
India is a success due to some sectors doing exceptionally well, including tourism, Bollywood and of course IT.
The government hasn’t always been very kind on these sectors but Hyderabad recently announced plans to introduce blockchain into the system, so things are changing.
Things Really Are Changing
Investors from over the globe have been pouring investments into India. Institutions such as Brookfield Asset Management are just among many famous organizations investing in properties and infrastructure in India in the country. However, some find the policies very stringent due to the restrictions on foreign investment, but the sector appears to be doing well.
Global interest in India further strengthens the argument that India is on its road to becoming the next big thing. Foreign banks like JP Morgan have also started operations in India.
India’s middle class is growing at a larger scale than any other country across the globe. This is yet another indicator of India’s growth. It is predicted that 550 million people will be added to the middle class status by 2030. Furthermore, studies even predict that more people will reach a middle class status in India compared to those in China by 2027.
Wealth is Flowing in the Country
Wealthy Indians becoming more financially strong. New World Wealth reports that India has assets over $5.2 trillion and is seventh largest wealth market.India’s IT and ecommerce sectors are growing at exponential rates. It is estimated the India’s smartphone market is growing at the fastest pace in the entire world.
Financial analysts predict that ecommerce sector will grow to £200 billion pounds by 2020 which was only £2.5 billion in 2013. Amazon particularly showed interest in the Indian ecommerce market, with a turnover of £260m only in three years of being operational. Even Netflix, which is currently struggling in the market, is trying to make its presence felt.
India has a population of 1.3 billion people. India’s economic growth rate of 7% gets divided with 5.8% of it being GDP per capita and 1.3 % of it being annual growth population. Even though more population helps in economic growth, it still doesn’t improve the financial status of the people.
Industries are Growing
Exports are rapidly growing as India is the top exporter of rice and several other goods. It’s also making its own clamp on flow meters and other products, which helps push the local economy.
Construction is also growing rapidly due to the huge profits it offers and some new industries may also find foothold in the country.
Emphasis on Decreasing Fertility Rate
Decreasing and controlling the fertility rate can significantly boost the economy. Practiced by Japan for over a century, fertility reduction allows more adults to go out and work instead of staying at home to take care of kids.
Fertility reduction can also be economically friendly for everyone, including government and parents. The government will have more resources for quality education. Families will have a healthier and better lifestyle. Decreasing fertility can also improve the infant and maternal mortality rate. But this is going to be a major challenge for the government due to a lack of information and education in the country.
India’s family planning programs are entirely focused on stopping women and stigmatize them instead of empowering them. This is similar to how China enforces one-child policy and sterilization. Due to such poor planning and policies, the country received tremendous amount of backlash from every corner.
India is definitely the next big thing. It is growing at a rapid rate and is already considered a big financial power by many. The government only needs to provide people with more opportunities and we will be on our way to the top.
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