India’s Economic Growth since 2014: A Phenomenal Journey
India’s economic landscape has undergone a significant transformation since 2014, when Narendra Modi took office as the Prime Minister. Under his leadership, the country has emerged as the fastest-growing economy in the world. This article explores the multifaceted reasons behind this growth, including policy reforms, FDI inflows, and digital transformation.Policy Reforms and Economic Overhaul
One of the primary catalysts for India’s economic revitalization has been the introduction of innovative policies and reforms that aimed at modernizing various sectors. The recalibration of India’s economic engine includes significant changes in the method of calculating GDP. The Gross Value Added (GVA) component was incorporated, recognizing the substantial contribution of the service sector, which constitutes nearly 60% of India’s GDP.
Foreign Direct Investment (FDI) and Structural Reforms
The period from 2014 saw unprecedented levels of Foreign Direct Investment (FDI), marking a turning point in India’s economic trajectory. High FDI inflows were attracted to sectors such as defense, digital television (DTH), aviation, single-brand retail, start-ups, pharmaceuticals, and e-commerce. These reforms aimed not only to boost the service sector but also to foster a more competitive and dynamic industrial platform.
The Make in India Initiative
One of the most impactful reforms was the launch of the ‘Make in India’ initiative, which sought to promote manufacturing in the country. The government’s persistent efforts to persuade foreign investors to open state-of-the-art technology centers in India created a robust ecosystem for skill development. This initiative fostered a culture of innovation and manufacturing within the country, transforming India into a global manufacturing hub.
Digital India and Technological Advancement
The Digital India campaign played a pivotal role in driving economic growth by leveraging technology. Companies like Google and Facebook recognized the potential of the Indian market and began investing heavily. This investment not only benefited the tech sector but also spurred a broader digital revolution. The government’s digitization push led to the launch of several e-governance initiatives, improving the ease of doing business and enhancing the overall efficiency of the public sector.
The Vodafone Investment Boost
A notable milestone in the economic narrative of 2014 and beyond was the significant investment by Vodafone in India. The company invested nearly 14,700 crore rupees, clearly signaling its confidence in the Indian market. This investment aligns with the broader trend of increased foreign investments into India, driven by a supportive regulatory environment and a growing consumer base.
India’s journey since 2014 has been marked by transformative changes that have significantly impacted its economic prowess. The decision to incorporate the GVA component, coupled with structural reforms, FDI inflows, and digital transformation, have collectively contributed to making India one of the fastest-growing economies in the world. As the country continues to navigate this exciting economic landscape, the promise of further growth and development remains compelling.