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“INDIA AT
77”-Navigating an Emerging
Economy Amidst Reforms |
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| Paper Id :
19274 Submission Date :
2024-09-12 Acceptance Date :
2024-09-24 Publication Date :
2024-09-25
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.13906780 For verification of this paper, please visit on
http://www.socialresearchfoundation.com/anthology.php#8
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| Abstract |
India stands at a
crucial juncture in its economic trajectory, marked by the simultaneous
challenges and opportunities posed by globalization and climate change. India's
economic progress has been nothing short of extraordinary. Its GDP has risen
throughout the years to become the world's third-largest economy. A young and
lively workforce, a growing middle class, and a quickly expanding internet
infrastructure have all contributed to the country's precipitous rise. With the
rise of varied industries such as information technology, pharmaceuticals,
manufacturing, and agriculture, India's economic variety serves as a buffer
against global instabilities. The approach centers on utilizing data and
statistics from relevant secondary sources to tackle the article's subject
matter. It underscores the importance of the current political, economic, and
social landscape in shaping the discussion. |
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| Keywords | GDP In Different Sectors, LPG Reforms, Make In India, Start Up. | ||||||
| Introduction | India is one of the largest
economies in the world, and perhaps, one of the most prominent emerging markets as
well. This paper examines the current state of India in terms of strategy, mindset
and its implications on
economy and other determinants that impede growth. India, at 77 years of
independence, has undergone significant transformation in various sectors.
Agricultural Sector in India has moved from Green Revolution to crop diversification,
from government policies to organic farming and what not .The focus on
sustainability, technological adoption, and policy reforms will be crucial in
ensuring the sector's resilience and growth in the coming years. On the other
hand India has moved from a closed door policy
to an open door policy
starting from 1991; greatly affecting
our next two sectors. In the
manufacturing sector, from 1991 onwards, we have focused more on foreign direct
investments but for a balanced economy we have started
initiatives like ‘Make in India’. The focus on sustainability, digital transformation,
and infrastructure development will be crucial in shaping the future of the industrial
landscape. Moving onto the next sector
i.e. Service sector , IT services have been a blessing for our economy There’s
a huge development in service sector be it in the education or health sector or be it in the infrastructure or E-Commerce sector, service
sector has seen it all. The focus on innovation, skill development, and policy
reforms will be crucial in sustaining this growth and addressing existing
challenges. |
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| Objective of study |
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| Review of Literature | India is an emerging global economy. The views of Hogg (2007) has been expressed that when we glance at the potential of India, categorically, it has a substantial platform to capitalize its resources and transfigure as an economic power house, but the road to success is highly reliant on relationships with its neighborhood, that will become the inflection point for any country looking to grow and progress India is an emerging global economy. The views of Hogg (2007) has been expressed that when we glance at the potential of India, categorically, it has a substantial platform to capitalize its resources and transfigure as an economic power house, but the road to success is highly reliant on relationships with its neighborhood, that will become the inflection point for any country looking to grow and progress India is an emerging global economy. The views of Hogg (2007) has been expressed that when we glance at the potential of India, categorically, it has a substantial platform to capitalize its resources and transfigure as an economic power house, but the road to success is highly reliant on relationships with its neighborhood, that will become the inflection point for any country looking to grow and progress. According to Datta. S, Prashant Kumar Singh and Rumel Dahiya (2012), are
the neighborhood and relationships with them. India, sharing border with the
second largest economy, which has gone through skyrocketing growth and
attracted majority investor to have an eye on opportunities underlying in
China. While examining the relationship of India with China, one would clearly
identify the relationship being contentious due to dominance in region and few
other concerns that encompass territory issues and military dominance.
Moreover, the mounting collaboration of China with Pakistan and Bangladesh has
also led wariness and austerity amid China and India's fragile relationship. India is an emerging global economy. The views of Hogg (2007) has been expressed that when we glance at the potential of India, categorically, it has a substantial platform to capitalize its resources and transfigure as an economic power house, but the road to success is highly reliant on relationships with its Neighborhood that will become the inflection point for any country looking to grow and progress. Chauduri (2002) also reported that the “expectations of rapid and sustained growth of output and employment …have not materialized.” The author concluded that value added growth in the 1990s was inferior to that in the 1980s, that the industrial base had become shallower, that employment growth in the 1990s was negative in five out of nine years and that the labour productivity stagnated after 1995/96, after having increased 4 in the early 1990s. Here again no attention is paid to the changes in protection, prices and costs that resulted from the reforms. A much more positive picture was drawn by Panagariya (2004), who argued that growth in the 1990s was more robust than that of the 1980s and that it was achieved through important policy changes. The main policy changes held responsible for accelerated growth are the liberalization of foreign trade, the reduction in industrial licencising and opening to foreign direct investment. |
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| Main Text |
India’s Journey through Our Eyes (1947- 2024)India’s economic growth
is a result of polices and initiatives adopted by the Indian government. After
independence, Britishers left India with a crumbled economy. But as soon as
Indian government was elected it shifted its focus on Agriculture Development
primarily. Prime Minister Jawaharlal Nehru’s development model envisaged a
dominant role of the state as an all-pervasive entrepreneur and financier of
private businesses. India set up the Planning Commission in 1950 to oversee the
entire range of planning, including resource allocation, implementation and
appraisal of five-year plans. The five-year plans were centralized economic and
social growth programmes. Five year plans appeared really effective but lacked
the required implementation. Population of India in the consecutive years
suddenly rose so did the poor population. In 1964, the war with China had
exposed India’s economic weakness. Chronic food shortages and price rise
convinced the then PM Lal Bahadur Shastri that India needed to move away from centralized
planning and price controls. 1960’s marked the era of the green revolution
which resulted in the adoption of modern farming techniques. Adressing the poor
population of the country, Indira Gandhi launched “Gareebi Hatao” programme
Global partnership in the manufacturing sector was initiated by the
collaboration of Maruti with Japanese car manufacturing company Suzuki in 1983. Following this, Indian economy was finally opened in 1991’s economic LPG reforms. This came out to be a significant step resulting in many Multinational companies setting up their offices in India boosting the tertiary sector of India. Following years marked the development of tertiary sector and reduced dependence on agriculture making the tertiary sector the majority contributor in India’s economy. In 2005 government introduced MGNREGA Scheme to provide employment to people. The adequate use of opportunities for the demographic dividend can prove to be a cornerstone in India’s journey of becoming ‘Viksit Bharat’. Over time several other schemes have been introduced to boost India’s economy and shape India in becoming a global economy power. The following page consists of tables that offer a comparative look of all the three sectors of the economy in two time frames and the various policies and reforms initiated by the government in various sectors for the upliftment and overall growth of the Indian economy. The following data has been taken from various authentic sources and NCERT textbooks.
Make In India The make in India initiative was launched by Prime Minister in September 2014. It was devised to transform India into a global design and manufacturing hub. It was launched against the backdrop of the crisis in 2013. The Make in India initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, not only in manufacturing but also other sectors for the next three years, aimed at raising the contribution of the manufacturing sector to 25% of the GDP in the coming years. It aims at raising the contribution of the manufacturing sector to 25% of the GDP in the coming years.
Benefits Of Make In India Millions of jobs have been created across various sectors. For instance, the "Make in India" initiative has contributed to the creation of over 10 million direct jobs by 2023. Foreign Direct Investment (FDI) has seen record inflows, with India receiving $85 billion in 2023.The GDP has grown from around 16% in 2014 to approximately 19% by 2023.
There were many other schemes to facilitate make in India programme such as: Startup India, Digital India, Skill India mission etc. Startup India Startup India scheme is an important government scheme that was launched on 16th January 2016 with an aim to promote and support the start-ups in India by providing bank finances. The Startup India scheme is based majorly on three pillars which are mentioned below: 1. Providing funding support and incentives to the various start-ups of the country. 2. To provide Industry-Academia Partnership & Incubation. 3. Simplification and Handholding. The below are the benefits and advancements of ‘Startup India’.
Analysis
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| Conclusion |
As it is clearly seen in the picture above that the Make In India
initiative has provided an impetus to the manufacture, using sector of the
country but it also comes with a downside that is : Its impact on agriculture- Make in India promotes industrial growth while excluding
agriculture from it.
Its impact on pollution- The pollution index for India is currently 76.50,
and after the Make in India Campaign, this number will rise undoubtedly. |
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| References |
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