India’s Ascension- The 21st Century Growth Story In The Making

An upward curve that is to remain for a long time. (10 minutes read)

A journey of economic liberalisation initiated about 26 years ago, India opened its doors to global market forces. With foreign investment and trade regimes introduced in the year 1991, India has witnessed a substantial rise in economic growth, provided greater choice to the consumers, led Indians to enjoy a high standard of living. Albeit there is a huge unmet need for basic services such as healthcare, water, energy, sanitation, red-tapism etc.

With an ambiguous picture of the global economy, a lot of eyes are on India as the country continues to show a consistent growth of over 7%, therefore, making it the world’s fastest-growing large economy.

Liberalisation, Globalisation and Privatisation of 1991 created new opportunities. It is upon the policy makers to manage the growth so that it creates the basis for sustainable economic performance and also address many of the challenges that the country still faces to makes this growth more inclusive in nature. Doing so would drastically accelerate the pace in coming years.

We look at some game-changing opportunities for India, discuss its significance for the government, multinational companies, domestic businesses and the consumers. In due process, we would also learn some exciting streams to pursue a career in India.

Unlocking the potential of Women: If not now, When?

India currently is in a phase of “demographic dividend”, an event where the share of working-age people is higher. This can push per capita growth rate through labour force participation, investments and savings effects. But if women largely stay out of the labour workforce, this will lead to a shortage of workforce and leave key sectors of the economy on a weaker side. According to a National Sample Survey (NSS) report, workforce participation of women is stagnated at about 26%-28% in urban areas and dropped from 57% to 44% in the rural areas. Women workforce labour rates if matched with international standards, would give a boost to the growth of the Indian economy.

Make in India- Manufacturing in India, for India and the World

Even though India’s manufacturing sector has lagged behind China’s, there are going to be massive opportunities for investment in value creation businesses and ultimately job creation. India is not only offering low-cost labour and infrastructure resources but also building competitive businesses to tap into growing local market and other large markets nearby. Reforms in doing business and investments on public infrastructure will be the key for all types of manufacturing businesses- Indian or foreign- to achieve efficiency and scalability.

These are the 25 focus sectors that have been identified for growth under the initiative that could see an astonishing rise in both growth and job creation. These are Automobiles; Auto components; Aviation; Biotechnology; Chemicals; Construction; Defence manufacturing; Electrical machinery; Electronic system design and manufacturing; Food processing; Information Technology (IT) & Business Process Management (BPM); Leather; Media and entertainment; Mining; Oil and gas; Pharmaceuticals; Ports; Railways; Renewable energy; Roads and highways; Space; Textiles; Thermal power; Tourism & Hospitality and Wellness.

Harnessing the Power of Digital Technology

In order to increase the productivity, improve efficiency across the sectors of the economy, radical transformation is required in the provision of services such as healthcare and education. Digital India initiatives are already in place to create an ecosystem of technology and digitalisation that could add $ 550 Billion to $ 1 Trillion in a year of economic value in the year 2025.

Such transformation could lead to a potential creation of million of well-paying jobs, productive skilled jobs (these include positions for people with moderate levels of education) and help Indians enjoy a decent standard of living.

From Poverty to Empowerment- Creating a level playing field

Creation of minimum acceptable standard of living that covers- nutrition, water, sanitation, housing, energy, healthcare, education. A major proportion of Indian population lacks these amenities.

Concentration on growth-oriented areas, emphasis on job creation, innovation promotion, effective participation from the private sector in providing basic services, these are some of the imperative elements that can help uplift India to greater heights.

Now, more than ever, India is in dire need of planned infrastructure investment both human and capital. If done right, India will achieve a historic boost to its economy.

Aakash Balasubramanian
A budding entrepreneur with a huge appetite for travel and adventure for food. I believe every idea can be big, but not everyone possesses the skills to make something grand of their idea. I feel confident of possessing myself with the requisite skills to push my ideas to the next level.
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