India: Economy of the Decade?

Economies around the world have been changing decade to decade. It is hard to predict where a country will reach at the end of the decade. But if the ball is in the court, and is played right, well then the game will be yours. Similarly, at this point of time India really has the opportunity, and things could really become great if they play it right.

If you look back, India has really evolved over the years. From the year 1991 India started to open up its economy to the rest of the world. Specific changes included reducing import tariffs, deregulating markets, and reducing taxes. This led to an increase in foreign investment and high economic growth in the 1990s and 2000s. From 1992 to 2005, foreign investment increased 316.9%, This was a major boost for India's growing middle class. In a similar time frame, the government also started huge subsidies for rural India. This resulted in creating a huge consumer sector both in urban and rural India. Higher FDI and consumer sector reflected the country's GDP, From 2003 to 2007 India consistently growing at 7% to 8% annually. And overall India's GDP grew from $266 billion in 1991 to $2.8 trillion in 2019.

One major reason behind this economic growth is sudden boom in country's service sector. The services sector is not only the dominant sector in India's GDP, but has also attracted significant foreign investment and It contributes more than half of countries' GDP. Unlike other countries where the trend is economic transition from agriculture to industry to services, in India it is directly shifting more toward services rather than the industrial sector. India's competitive advantage formed by the knowledge-based services makes it a unique emerging market in the world, and attracts many investments in the country. With the growing tech, and IT industry in India, the services sector in India still has lots of potential to unlock a multi-trillion dollar opportunity in future.

But even with this growth of the service industry, India is still struggling to generate good-paying jobs in the country. Now one of the biggest sectors besides the services which can offer thousands of good-paying jobs, is the manufacturing sector. Growth in manufacturing is crucial for India's economic development. To capitalize on the demographic dividend, India must create nearly one million jobs per month over the next decade. Manufacturing has the potential to provide large-scale employment to the young Indian population and thereby enable a significant section of the population to move out of poverty. With 2.7 trillion dollars of GDP in 2020, India is the world's sixth-largest economy. Yet manufacturing accounts for only 16% of the country's GDP, compared with the services sector's 54%. Also India represents only 3 percent of the world's manufacturing output.

You see, the country has several strengths that could help it become a successful manufacturer. Like a large pool of engineers, a young labour force, wages that are half that of China's, and significant domestic consumption of manufactured goods. These factors become especially important as China, the world's preeminent manufacturing destination, faces peak labour shortages and exponential wage growth. Now India is also focusing on more high-end manufacturing like electronic components, smartphone manufacturing, and other related products. Till now they have had some success attracting some major companies under the government's PLI scheme. According to the Indian Ministry of Electronics and Information Technology, these companies will be producing smartphones and other electronics components worth more than $143 billion over the next five years. Also, around 60% of the locally produced products will be exported. Some estimates suggest that these companies could generate more than 200,000 direct employment opportunities in the next five years and as many as 600,000 indirect employment opportunities. Yet for now, most of the manufacturing is still based on assembly lines and not sophisticated manufacturing like chipset, memory, and other components. Still country is optimistic about creating complete supply chain for electronic manufacturing. Recently some news reports have come up in which the Indian government is in talks with Taiwan for semiconductor manufacturing in India. As you know Taiwan is one of the biggest manufacturers of semiconductor and it could drastically change the India's electronic manufacturing capabilities.

So to sum it all up, we can say the ball is in India's court. But they will only win the game if they could get over the challenges and play it right. The country has a huge opportunity to grow upon their demographic divident, like China did in the past.
Now what is your perspective about India, Will they really win over this decade? Well tell us in the comments below.

#indianeconomy #economyofindia

[raunakshukla]

We want to see India as 10 Trillion dollar nominal GDP in 2030...
2.5 Trillion Exports per year...
3 Trillion Forex reserve....
Let's be hopeful...
Let's trust India...
Jai Hind...

[Sohampn]

Also in the video you mentioned India's industrial output accounts to 16% of GDP which is wrong it is 27% India's agricultural output accounts for 16% of GDP

[priyanshrathod]

I pray to God that our country also become rich and developed as it used to be before Europeans came and looted it.

[marktrinidad]

India has a long way to go. They need to be pragmatic on their policies so to provide jobs to more Indians entering the workforce and be independent and not be easily swayed on their policies due to US pressure. Wish them more growth though as any Asian growth helps the whole region as a whole to grow.

[pankajsahu]

This decade is for South Asia, particularly India, Vietnam and Bangladesh. India gaining its old glory, an Ara before 1820

[Sohampn]

India's plans have somewhat slowed down because of the Pandemic but in my opinion all the goals and targets set by the government will be achieved in said time since we will reach pre-pandemic levels of economy by Q2 2022 we will then focus on expanding it

[ravishbhasin]

India will not take China route, it'll make a QUANTUM leap. It will go straight into Digital and electronics and other high tech where all the money is at, while all the jobs will be generated due to logistical infrastructure like roads, bridges, railways and more. If India successfully manages to get hold sustainable Hydro power, it can be a grand game changer and will lead power revolution because of our location advantage. Trains, Bullet trains and more will pop out in such short intervals and will improve public transport and logistics, you can clearly see how fast metros popped out in a span of few years after Delhi metro showed how good it can be.

Education will go through overhaul and skill will be prioritized to learn, Biggest revolution would be in the way agriculture works, middle man are being removed and cut off and farmers are getting direct benefits. Technology will be introduced to farmers with much better ways to farm through various methods and techniques creating great food surplus and creating more output to be used for food processing and add value to our exports. Textile sector is fine but it needs alot more inter-connectivity and access to market which is also happening by connecting them with digital mediums even if it means hand holding them through it.

India will be at forefront of E-revolution and it has already changed much of its railways to be electrified rather than run on coal. Soon it will be populated with EVs and more, you can already seeing E rickshaws taking over in the Delhi compared to normal one. Another thing not being mentioned is that India is also upping the defense exports and selling Tejas and Brahmos along with various guns and equipment constructed over here due to the shift in policy and more focused approach towards weaponry. India will soon be a missile superpower too. It'll have so many types of missiles that it can destroy another nation just by sitting right where it is while also having defense capabilities provided by XRSAM, Iron dome and S400 and maybe even S500.

[AA-kuwv]

India:- I have total 2.8 trillion GDP
World:- What is Per Capita GDP not total?

India:- I produce low Solid Waste per Capita
World:- What is the total Solid Waste not per capita?

[souravsharma]

Dedicated freight corridors and expressways along will help boost infrastructure and supply chain. PLI schemes in manufacturing has started showing good results as many renowned manufacturers have come for component level manufacturing. India already has software power but now same thing will be done in manufacturing sector. It is just a matter of time

[bose]

Yes India will succeed but it needs some time and you know why?
1.The government has good strategies
2.The people are motivated
3. A very huge young and educated young people
4. In general the Indians are hard working
5. The market is huge

[Ansh_]

This year we are having a 10% growth in GDP and next year it will be 12%, Export will also cross $400 billion in this year, I know this is low but we will cross 1 trillion dollar export in 2024 👍

[federicoduff]

The Indian democratic system slows down the country's economic development

[prabhakarroy]

India will win 🇮🇳. Because it's necessary!!!!

[mykeralajob]

India is a head of decades than other countries in digital transaction 🔥

[ravimishra]

So much of thus transformation has occurred in the last decade, because of the direct intervention of Modi. Not fanboying here, but the man genuinely deserves credit for laying emphasis on infrastructure, especially power and roads, UPI and opening a bank account for every indian. The basic work to bring decades of growth has been laid, and hopefully India will reap the benefits from thus decade on.

[bose]

To be a developed country it´s not enough to increase our GDP only.There are at least 10 more things we need to focus on:
1. Hard work and discipline
2, Honesty and less corruption
3. Open mind and and friendly to all - no discrimination and no cast system
4. Good foreign policy
5. Environment
6. Strict laws and punishments
7.Justice and security to all
8. Education
9. Health care
10. Infra structure with sanitation, beautification and cleanliness

[eduardocajias]

Will India "run over" in this decade as they asked in this video?!
I have no idea.
But... If not in this decade, India will rum over in the next decade!
I am sure.
Salute from São Paulo, Brazil (and we should increase not only our comercial relations with India, but specially cultural, educational, and tecnological relations).
😉

[ska]

What kind of videos you want in the future ? We need the story of Asian century .

[korabkanwar]

But people protest against every reform here 🤔🥴

[mchief]

Good job India, hope your economy is best, love from Pakistan