Welcome to our third post on the knowledge series "Is India the new China?”
In this post, we will talk about the reforms that are in place and how they are contributing to our growth, the reforms that are proposed to be implemented and the reforms that are needed to ensure that India becomes the third largest economy by 2030.
Even in the long run a government has very little influence over the size and growth of its labour force. The authorities are therefore focusing on the other two variables: boosting investment and Total Factor Productivity.
The 2019 Economic Survey laid out the Strategic Blueprint for India to become a USD 5 trillion economy by generating a virtuous cycle where private investment, wage and employment growth as well as consumption feed into each other.
India accounted for more than one-third of the world’s GDP. Economic dominance over such long period manifests by design; not by mere chance.
In the process of economic wealth creation in the future, the role of markets and the private sector is expected to secularly increase in the Indian economy.
A slew of reforms has been launched in the last few years—the Bankruptcy Code, the Goods and Service Tax, critical changes to the Essential Commodities Act, Agricultural and Product Marketing.
In the next decade, the mindset in the Indian private sector should also undergo reform. India also needs to tap into the manufacturing sector to gain a competitive advantage.
To become a global force in manufacturing, India needs to focus on “Assemble in India for the World” before integrating backward to producing in multiple stages of the value chain.
The few reforms that have already contributed are as follows:
We as finance professionals play a huge role in this sector and can contribute to the growth of the economy.
Are you as curious as we are?
What do you think should be the focus points for us? Please let us know in the comment section below!