Over the past six years, India has experienced immense growth in its economy, thanks to strategic structural reforms and increased formalisation. As per a recent report, this growth has been built within a large and varied ecosystem, showcasing the country’s determination and resilience despite various challenges.
The Indian economy has always been on a steady growth trajectory, but the last six years have been exceptional. The country has been able to maintain a stable and impressive GDP growth rate, averaging at around 7%. This has been made possible due to the government’s unwavering focus on implementing structural reforms and encouraging formalisation across various sectors.
One of the major drivers of this growth has been the implementation of the Goods and Services Tax (GST), which has revolutionized the Indian tax system. The unified tax structure has eliminated multiple layers of taxes and has brought about transparency and ease of doing business. This has not only boosted revenue for the government but has also provided a conducive environment for businesses to thrive.
Another significant reform has been the introduction of the Insolvency and Bankruptcy Code (IBC). This has streamlined the process of resolving insolvency and has instilled confidence in both domestic and foreign investors. The IBC has also helped in reducing the burden on the banking sector by resolving bad debts, which were a major obstacle to economic growth.
Along with these structural reforms, the government has also focused on formalisation of the economy. This has been achieved by promoting digital transactions, issuing unique identification numbers to individuals (Aadhaar), and bringing more individuals and businesses under the tax net. As a result, there has been a significant increase in tax compliance, leading to higher revenue generation for the government.
Additionally, the government’s efforts in promoting ease of doing business have resulted in India’s steady rise in the World Bank’s ‘Doing Business’ rankings. The country has jumped from 142nd rank in 2014 to 63rd rank in 2019, showcasing a remarkable improvement in its business environment. This has attracted the attention of many global companies, leading to an increase in foreign investment.
The growth of the Indian economy has not been limited to a few sectors but has been all-encompassing. The country has witnessed growth in industries such as information technology, pharmaceuticals, automobile, and agriculture. The government has also introduced policies to boost domestic manufacturing and promote ‘Make in India’ initiatives, resulting in job creation and economic growth.
One of the key factors contributing to the growth of the Indian economy has been the country’s diverse and robust ecosystem. With a population of over 1.3 billion, India has a vast talent pool, which has been a major driving force for innovation and entrepreneurship. The government’s initiatives such as Startup India, Digital India, and Skill India have provided a boost to the ecosystem, making it easier for individuals to start their own businesses and contribute to the economy.
Moreover, India’s demographic dividend has played a crucial role in its economic growth. With a majority of its population being under the age of 35, the country has a large workforce that is skilled and ready to take on new challenges. This has not only made India an attractive destination for businesses but has also provided a competitive edge in the global market.
The report also highlights the role of various stakeholders in India’s growth story. The government, corporates, and citizens have all worked together to create a conducive environment for economic growth. The government has been proactive in implementing policies, while corporates have shown resilience in adapting to the changing landscape. Citizens, on the other hand, have embraced digital advancements and have actively participated in the formalisation process.
In conclusion, the growth of the Indian economy in the last six years has been nothing short of remarkable. The country has shown its determination and resilience in the face of challenges and has emerged as a global economic powerhouse. With structural reforms, increased formalisation, and a diverse ecosystem, India is on the path towards becoming a $5 trillion economy in the near future. The government’s continuous efforts and the collective contribution of all stakeholders have paved the way for a bright and prosperous future for India.
