While the entire world is appreciating India’s economic growth, its only the Congress and its allies in India who are being cynical of India’s growth. The Moody’s and various other economic experts have given a very positive opinion of India’s growth in next 2-3 years which has set a positive trend in the country. The other indication is the surging sensex values which had plunged below 27,000t 3 years back is now above 35,000 which is all time high in the history.
The biggest reason why the markets are now growing well is due to policy reforms, ease of doing business and implementation of GST which has brought all taxation under one rule. While we agree that initially the implementation of GST requires a lot more coarse correction, but what satisfies the market is that it is heading towards the right path.
The Wall street journal published an article yesterday in which it rightly pointed out the systematic growth of Indian Economy since 2014. A comparative analysis has been given which shows how the Economy which was picking up in 2006-2007 suddenly reversed and took a steep fall in 2009. The Indian Economy further plunged in 2011 and continued the negative trend which literally destroyed the industrial and manufacturing sector and put a halt to the growth.
But it was only after PM Modi took over as the Prime Minister of the country many age old policies were scrapped and the economy slowly started to revive. His push for ease of doing business, ending red tapism and giving importance to entrepreneurship programs like Start up India, Stand Up India was seen as a hope in the younger generation. Supporting small and medium scale industries by launching MUDRA yojana was one of the game changer in terms of job creation. Over 10 crore people have been benefited by the Mudra Yojana which is one of the most successful reforms ever made. PM Modi’s another major push was Make in India which opened up new fronts to foreign companies to establish their industries in India and provide job opportunities to Indians.
The Wall Street Journal points that “Since taking office in 2015, Mr. Modi has been trying to change the conversation around India. He wants it to be seen as the next China in terms of economic opportunities as well as a bastion of democracy. He is battling perceptions that depict India as a messy democracy, bogged down by poverty at home and the rivalry with its nuclear-armed neighbor Pakistan.”
The WSJ says that the “India’s economic ascent was predicted late last year by The Centre for Economics and Business Research in London. The country’s GDP has been in the top five as measured by purchasing-power parity—which adjusts for domestic prices—and for years it has been much further down the rankings in terms of GDP per capita. But this is the highest its GDP has reached in modern times in terms of current real dollars.” The official numbers won’t be in until the end of February, but it looks as if India leapfrogged the U.K. and France last quarter, a position it will maintain this year, said Doug McWilliams, deputy chairman of the center. The CEBR predicts India will continue to rise in the rankings and become the world’s third largest economy by 2027.
In 2005, China was in No 5 position of fastest growing economy in the world and today it stands in 2nd position. But India although not a trade-dependent great power, it stands at a similar crossroads today, said Alyssa Ayres, former deputy assistant secretary of state for South Asia and author of a book published last month, “Our Time Has Come: How India is Making its Place in the World.”
“(Chinese president) Xi Jinping was the talk of the town last year.”, “Well, Modi is going to be the big curtain raiser at Davos this year. That’s India saying, ‘We want to be seen here” said WSJ.
It said that since PM Modi came to power, India has been able to take more muscular stance in the global world. At the World Trade Organization, it won concessions over India’s food-stockpiling program, and it has joined the International Missile Technology Control Regime, which tries to control missile trade. India was the world’s biggest importers of defense equipment in the five years through 2016, according to the Stockholm International Peace Research Institute, a Swedish think tank.
Mr Modi has been able to build very close relations with US, Japan and many other countries and restart the economic and military trades which had taken a hit during the last decade. His visit to Israel was another significant event in terms of military cooperation and intelligence sharing. The visit of Israeli Prime Minister to India last week also grabbed the attention of the world. PM Modi’s invite to the leaders of the Association of Southeast Asian Nations later this month to New Delhi for India’s Republic Day celebrations shows how India is dominating the South Asian countries and giving a tough fight to China. Promoting Yoga was a masterstroke of PM Modi to depict India as a soft power, at the same time, strong message was sent to the world by taking strong decision on surgical strikes.
India’s endgame, analysts and insiders say, is a role that better reflects its strong economic position. It has long pushed for a seat as a permanent member of the U.N. Security Council, and it hopes to become part of the Nuclear Suppliers Group, which would help it more easily gain access to nuclear fuel and technology. It would also like a greater say in the decisions of other international organizations including the World Bank and the International Monetary Fund says WSJ.
“One of Mr. Modi’s allies in raising India’s profile abroad has been the country’s diaspora, which includes many of the executives of the world’s top companies who will be at Davos. Mr. Modi has activated his supporters among the more than 15 million Indians living around the world. “You might have realized that in the last three-four years, the perception of India has changed,” he told a gathering earlier this month of powerful Indian expatriates invited to Delhi. “The focus is on us, the world’s attitude towards us is changing. This is the main reason is that India itself is changing. It is transforming itself.”
Credit and Source: The Wall Street Journal