If the finance ministry projection is to be believed, India’s economic trajectory is set to potentially reach $7 trillion by 2030.
According to data presented in ‘Indian Economy – A Review’, India has managed to achieve strong growth for a third consecutive year, surpassing a 7 per cent expansion right when the global economy struggles to grow at more than 3 per cent.
“India’s unwavering commitment to ensuring steady economic growth is generating resources for investment needed for climate change adaptation, building resilience, and mitigating emissions,’ the review read.
Over the past decade, public sector capital investment has surged, the financial sector remains healthy, and non-food credit growth has been robust, all contributing to India’s brisk economic ascent.
“The reforms undertaken to strengthen the financial sector have helped clean up the balance sheets of banks and corporates and emboldened banks to resume lending to all sectors of the economy. The unification of the domestic markets brought in by the adoption of the GST has incentivised production on a larger scale, and enhanced economic efficiency while reducing logistics costs,” the report reads.
The report adds that Centre’s all-inclusive welfare approach is expected to contribute to the expansion of the consumption base by enlarging the middle class. Despite challenges posed by the global health crisis and climate variability, the agriculture sector has displayed remarkable tenacity and resilience, it claims.
India’s robust Digital Public Infrastructure (DPI) has transformed the authentication ecosystem, reducing the cost of conducting electronic Know Your Customer (e-KYC).
This, coupled with widespread internet connectivity and smartphones, rapid urbanisation, has propelled the country’s e-commerce market, making India the third-largest fintech economy globally after USA and the UK.