Modi Govt’ Achievement: Indian Economy Now Sixth Biggest in the World

It seems the sweeping yet stringent reforms made by our Honorable Prime Minister Narendra Modi have paid off. Yes! The World Bank figures (2017) have confirmed that Indian economy has become the sixth biggest economy pushing France and Great Britain into seventh and eighth place respectively.

If the data is to be studied further, the GDP of India has increased up to $2.597 trillion at the end of the year as against $2.582 trillion for France.

What led to rise in Indian economy?

Employment Opportunities

After several quarters of slow-down Indian economy rebounded, thanks to the implementation of GST and other economic policies pursued by the government of India. His make in India policy initiative created a level playing field for the companies and boosted the job opportunities alike. Recently, his nod of approval to open a factory to Korean technology firm Samsung in Noida vouches that he not only wants to make India a manufacturing hub but also want to improve the ties with the foreign nation.

Infrastructure reforms

The current government has changed the world of infrastructure and realty sector by building a port terminal for Mumbai, increase in the road network for rural areas, implementation of RERA, opening up of Real Estate Investment Trusts, etc. India’s remarkable improvement in transparency in doing the business operations has further mapped the growth of the economy.

Agriculture Reforms

The government has proposed various reforms like

• Elimination of middle man
• Crop specific procurement policy- under which the government plans to compensate the farmers in case the market rate of mandi is higher than MSP
• Market assurance scheme, under which the states will be empowered to procure certain crops without the former approval of center
• Private procurement and stockist scheme, under this scheme the government will reward the private players for buying crops from farmers at MSP.

Banking Reforms

The government has initiated bankruptcy law to improve the foothold of the banking sector and wipe away the bad loans. LIC take over of loss making IDBI bank, further suggests that the best is yet to come. Apart from that, it is worth mentioning that the recent implementation of GST has impacted the direct tax collection as well as advance tax positively.

Other reforms

His proposed plan to connect small towns and cities (though in a nascent stage) is another attempt to boost the economic growth of Indian economy. The reforms in the power sector, Indian railways, housing for all scheme, all suggest that India is in a progressive mode, but the biggest challenge that the Indian government face is- rising oil prices that would impact the current account deficit and push consumer price inflation high.

In the end, we can conclude that despite global competitiveness, improvement in ease of doing business rankings, better macro and micro indicators, the business sentiment needle hasn’t moved in a right direction, there’s a lot more to be done.