INDIA FORGES AHEAD
WITH AN EYE ON SUSTAINED ECONOMIC GROWTH, INDIA IS WRITING ITS SUCCESS STORY WITH APLOMB
The 75th Independence Day of India is a landmark celebration with Prime Minister Narendra Modi announcing a slew of programmes and projects to showcase ‘development, governance, technology, reform, progress and policy' over the years.
From 1947 to 2021, the country’s development journey has been marked by significant milestones and reforms that enabled it to achieve substantial progress in many areas including rise in income levels, growth, literacy, life expectancy and a wide variety of other economic indicators.
EYES ON GDP
Ten years after the country adopted a new industrial policy with emphasis on liberalisation, privatisation and globalisation thereby increasing India’s GDP growth rate, increase in foreign direct investment and increase in the per capita income, Indian companies have flourished, making the country an economic power to contend with.
Replacing the Planning Commission with NITI Aayog, a state-of-the-art resource centre that acts as the Government’s think tank with the necessary resources, knowledge and skills, that enables it to act with speed, promote research and innovation has given a further boost to the country’s economic progress.
Leading nations view India as a potential superpower. Rebuilding itself from ground zero, India now has the thirdlargest GDP in the world in purchasing power parity terms and an environment that is conducive for the growth of budding entrepreneurs and industries alike. Despite economic activity taking a hit during the second wave of COVID-19, according to the economic think-tank National Council of Applied Economic Research (NCAER) the Indian economy is likely to grow 8.4-10.1% for the current financial year as against a contraction of 7.3% in the last fiscal. According to the IMF World Economic Outlook (April-2021), India's GDP growth rate in 2021 is projected at 12.55%. India is in fifth position out of 193 economies. India is among six economies that will experience a double-digit growth rate in 2021. With a 7.965% contraction in 2020, India is at the 150th position. India was among the top 10 growing economies in two years, 2016 (7th out of 203) and 2015 (9th out of 204).
PSUSTHE CONSTANT SUPPORT
Since Independence, among all sectors that have contributed to the growth of Indian economy, PSU sector has been the most consistent and prominent given its contribution towards the country. The PSU sector has not only contributed in terms of GDP’S growth and development, but also assured self-reliance to the people of the country. The services of the PSU sector have laid the foundation for various other sectors to grow and prosper. The PSU sector has given the framework for others sectors to manifest growth and abundance in the country. India has made significant strides in the industrial, oil & gas and financial sectors since Independence with PSUS like Indian Oil Corporation (IOL), Hindustan Petroleum Corporation Limited (HPCL) contributing tremendously in the economic growth of the country. Under the ‘Make in India’ initiative launched in 201415, the Government of India has enhanced its focus on PSUS belonging to 25 important sectors of economy. PSUS in various sectors will get a chance to elevate their scale of operations, optimise allocation of resources, upgrade plants and procedures and bring more recognition to India as a manufacturing hub. HPCL for example, recorded Profit after Tax (PAT) of Rs 1,795 crore during April-june 2021. The revenue for the quarter is Rs 77,586 crore as compared to Rs 46,108 crore during the corresponding previous period.
BANKING ON GROWTH
The banking sector, whose history goes back to the preindependence era, also has a solid base in India and forms the base for the economic development of the country. The Indian banking sector today is also one of the largest service sectors found in the country. There have been major changes in the banking system and management over the years with the advancement in technology, considering the needs of people. The post-independence phase led to major developments in the banking sector of India and also in the evolution of the banking sector with nationalisation of banks between 1969 and 1991. This led to an increase in funds thereby increasing the economic condition of the country, increased efficiency, helped in boosting the rural and agricultural sector of the country, opened up a major employment opportunity for the people.