A decade of reformist action has catalysed the emergence of India

Source: The post is based on the article “A decade of reformist action has catalysed the emergence of India” published in Mint on 26^th May 2023.

Syllabus: GS 3 – Indian Economy – Growth & Development

Relevance: measures taken to boost Indian Economy

News: The current PM is set to complete nine years. The article explains various measures taken by the current government to boost the economy of India.

What measures have been taken by the government?

First, the National Infrastructure Pipeline, the 33% capex hike in the current Budget and the Gati Shakti scheme are the important initiatives taken to strengthen infrastructure, boost market competitiveness and fortify growth. The asset monetization programme and NaBFID would greatly help to unlock capital for infrastructure financing.

Second, the government is promoting a manufacturing transformation through its Atmanirbhar Bharat plan of self-reliance and PLI scheme. Further, efforts in improving the ease of doing business and facilitating corporate exits, introduction of GST and reduction in corporate tax, with skill development, FDI reforms, etc. will make India a hub of manufacturing and exports.

Third, India has allowed FDI in many sectors such as retail, civil aviation, defence equipment, space, insurance, nuclear energy and others. This has made India a preferred FDI destination. 

India has also signed economic cooperation and trade agreements with countries such as the UAE and Australia, and negotiations are underway with the UK, EU and Canada, among others, to expand global ties.

Fourth, the government’s Start-Up India initiative has catalysed a startup culture and built a strong and inclusive ecosystem for entrepreneurship in the country. Today, India has the world’s third-largest startup ecosystem.

Fifth, the PM has aimed at digitizing India and fostering the emergence of a digitally empowered society and knowledge-based economy. This has been achieved through the Digital India initiative.

Sixth, sustainability and green growth has now become an important component of the government’s overall development plan. India is among the few countries that has set an ambitious goal of net-zero carbon emissions by 2070.

India is also the third largest producer of renewable energy, with the potential to emerge as the global hub for green hydrogen.

Seventh, schemes such as Jan Dhan Yojana, Ujjwala Yojana, Kisan Samman Nidhi, Ayushman Bharat Yojana, etc. are important initiatives taken to uplift the needy and promote social empowerment in the nation. The govt. was also appreciated for efforts in making Covid vaccines available even to the most vulnerable.

In addition to the above, the government has also brought in multi-dimensional reforms and taken many initiatives, in partnership with major stakeholders, in diverse areas to promote competitiveness, promote inclusion and enhance growth.

What more measures are required to improve India’s economy?

There are more actions required by India such as – a) prioritizing the infrastructure development along with the effort to improve ease of doing business, b) reduce the cost of doing business through factor market reforms, lower the costs of energy and capital and c) focus on improving health, education and skills, among others.

The current G20 presidency enables India to showcase its leadership in tackling various challenges and setting agenda globally.