India's Global Rise: Building Opportunities For A New-world Order
To a section of analysts, Tim Cook and Apple’s official arrival in Mumbai and Delhi heralded the arrival of India on the global scene. To another segment, however, India’s abilities and economic prowess mean India is already a global answer.
A destination where brands find dependable manufacturing capabilities, facilities for research and development and a market that counts nearly 17 per cent of the global population. India certainly is an answer to many of the pressing problems the world faces. Can India provide the fuel needed to sustain global growth?
According to World Bank and OECD statistics, in the decade since 2010, the global economic output grew by 2.87 per cent. Within the same time frames economies such as America and Japan grew by 2.12 per cent and 0.79 per cent respectively; Germany by 1.54 per cent; China by 7.25 per cent and India by 5.7 per cent.
The fulcrum of global growth in the two decades post-1960s was upon American manufacturing. In the 1990s and a decade later, global growth was fueled by Chinese manufacturing. In a post-pandemic situation, however, economic output rendered by the Asian dragon and American hawk alone may not sustain global growth.
Why India?
India’s contribution is paramount to global economic growth which would mean promoting opportunities, fostering stability, and innovation that results in larger social good. India’s economy is forecast to surpass USD 3.7 trillion by the end of the year 2023.
By 2027, India is expected to rank third with a USD 5.4 trillion economy and India to surpass Germany and Japan as the world’s third-largest economy in the coming times
The world’s most populous country is already an answer to several pressing questions of the world. Outsourcing and offshore solutions? India: better bang for investors? India: opportunities in the digital economy? India: innovative technological solutions? To a world which must grow to alleviate poverty, provide innovative solutions and add jobs, India’s demographics and policy-making offer rich insights.
On the domestic front, policy-making has ushered in significant reforms. In FY 2022-23, India’s real GDP growth is estimated at around 7 per cent. According to the recent economic survey, its private consumption as part of GDP witnessed the highest second quarter since 2013-14 at 58.4 per cent of FY23.
India’s capital expenditure (capex) spending has witnessed fresh highs. In FY23, central government capex increased 63.4 per cent in the first eight months of the fiscal.
An economy that observes production and robust private consumption indicates a sound demand-supply equilibrium. An increase in government spending as CAPEX projects indicate sound economic policy and growth opportunities.
Additionally, India’s merchandise exports grew 6 per cent to USD 447 billion despite severe global headwinds. Going ahead, significant savings of precious forex validate the soundness of economic policies.
Upholding democratic values
As part of its quest to the world's top three economies, India has already provisioned significant measures. The government's approach has been on the right track through administrative policies such as infrastructure enhancement, port modernization, encouraging entrepreneurship, fueling innovation, strengthening exports and fostering the digital economy.
For example, in the areas of skill development, the government has channelised initiatives such as Digital India, PM Kaushal Vikas Yojna, Deen Dayal Antyodaya Yojana, National Career Service, Skill India, and the Deen Dayal Upadhyaya Grameen Kaushalya Yojana. A highly skilled workforce is a vital cog in any industry and such schemes only enhance productivity, encourage innovation and attract investors.
Ease of doing business is a critical tool for entrepreneurial viability, however, democratic values are equally crucial to better economic output. Free elections, independent judicial systems and the ability for businesses to arbitrate on critical legal issues are essential to fostering an economic environment. India understands that its ascent to the status of the top three global economies would require democratic institutions.
These help in strengthening governance, increasing transparency, and reducing corruption. Besides the smooth function of democratic institutions, India has also simplified bureaucratic processes, implemented e-governance initiatives, and consistently ensured the rule of law which only enhances India's competitiveness.
Democratic values have also resulted in India’s active engagement with various blocs, trade agreements, and think tanks as strategic partners. India's ascent on the global pedestal has resulted in the country forging strong bilateral trade and economic partnerships that have amplified its exports and foreign direct investment.
At the global roundtable, India has succeeded in narrating its strengths and innovations such as improved financial literacy, the success of JAM (Jan-Dhan, Aadhar, and Mobile) and other government schemes.
Leveraging from the secret ingredient
India as the world’s most populous nation may raise a few eyebrows, however, the demographics are a dividend to any brand considering an India expansion. Nearly 18 per cent of the world population lives in India. And a whopping 65 per cent of that population is young or under the age of 35, which gives India the benefit of having the world’s largest working population.
India’s financial services sector, though wealth in India has been predominantly held in the form of Gold and Real estate, however, in recent years, the stock market has arrived as a booming avenue. Stock exchanges such as the Bombay Stock Exchange have reported double-digit growth and a market capitalization upwards of USD 10 trillion.
Tectonic advancements in the fields of technology such as automation, healthcare, renewable power generation, and semiconductors await investors and businesses in India.
Given the globalised nature of trade, India with its strong native English-speaking population has a big opportunity to shape a new world order. India’s ascend to the top-three listing should not surprise but rather make it more lucrative in the global charts each day.
