India at 70 represents the passing of an illusion. As the Country continues to tackle it’s pressing economic, human development and social equity goals, it is emerging as a World power even as it still has a large unfinished agenda. India over the past decade has become a much larger factor in foreign and international economic policy around the world.
Economic activity has shifted to Asia and India is a large and growing part of that story ..in part due to success of economic growth in lifting more than 160 million out of poverty ; India’s economy now the World’s third largest in terms of purchasing power parity has given it greater global heft and is powering the expansion and modernization of the country’s military capabilities
Perhaps as important, a more vocal India is emerging on the world stage , an India that sees itself as a Leading power and seeks to fulfill that ambition. This new stance , still a work in progress , suggests more provocative participation from India on international matters in the years to come.
Whichever way you look at it, India is one of the most happening countries in the world today ,and is poised to becoming the third largest economy ( behind USA & China ) by 2030*.
This has been a result of a number of key/ bold initiatives taken by the new government, including some hard reforms some of which are as under :
- Corporatization of the Government / Bureuacracy
- 3 year / annual , monthly Planning for each ministry / department – with monthly reviews
- Improved administration – tighter disciplined working/ accountability against assigned KRAs , focus on productivity ,efficiencies & control on expenditures
- Review & re-engineering of processes – to enhance ease of doing business
- Increased accessibility to decision makers including the Prime minister himself
- Bureaucracy delinked from politicians / ministers
- Imporoved visibility of the country and building relationships with key partners / nations
- Top level meetings with key countries / leaders– USA , China , Japan . Germany , France and the BRIC Nation heads
- Top level interaction with key interest groups
- Leading corporates – Oracle , Google …….
- Indian diaspora
- Active participation in World bank, IMF , World Economic forum,
- Strategic Visits to specific countries to present /Market the New Face of India
- Well integrated & complementary, nation & economy building programs
- Strong focus on building infrastructure
- The GOI has allotted 9.55 billion USD to National highways for building roads **
- The government has set earmarked 20% of of the Investment of US Dollar 1 trillion resrrved for infrastructure during the 12th 5 year Plan. **
- India will have more SEZ ( Special Economy zone) than the rest of the world combined and a Trillion Dollar Investment has been planned.
- Strong focus on building infrastructure
- Make in India – where companies are strongly encouraged to establish manufacturing facilities in India – and this is incentivized by preferred tariffs , facilities and other sops.
As a result a number of companies have scaled up / invested in large facilities in India eg
- IBM, Oracle …in IT .,
General Motors , Mercedes benz in automotive / engineering
- Wayne burt-GE Aviation , HAL-Ircut Corp , Boeing in Aviation & Defence
- General Electric -Alstom in Railways
- Space Group , Samsung , Xiomi , Foxconn, Lenovo , Opteimus -wistron in Telecom
- Skill India – harnessing one of India’s richest resource – one of the YOUNGEST population in the world with a median age of 25
While India has a large well educated English speaking population – which is in great demand across the world specially in IT , Manufacturing , Banking – IT is NOT enough to support the spurt in demand for MAKE in India as also for export
- Digitization – using the power of digital technology to Empower & Build Knowledge Economy
- Financial inclusion : Using technology and digital Records in public Administration with New technologies that make the use of financial inclusion and Bio metrics.
- Financial reforms – eg GST , demonetization , promoting cashless society
- Leveraging technology – dashboard for all infrastructure projects for realtime status , automation of IT , Railways etc
Whilst the results of these initiatives have been mixed so far ( for it’s a shade too early ) – their overall impact in the last few years & what can be expected in the future is pretty substantive
Few key indicators/ projections are @
- Currently the Fourth fastest growing economy in the world
- Currently placed at rank 7 India will be the 3rd largest economy by 2030 *
- Indian Economy will expand to 6.84 trillion Dollars by 2030 ***
- Furthermore it’s Annual economic output will double of Britain & France by 2030 ***
- By 2040 india’s GDP in terms of Purchasing Power Parity will grow to 30 Trillion Dollars and in terms of dollar will grow to 28 Trillion dollars by 2050 , behind only USA and China.
- Ease of doing business is Significantly improving with the key initiatives aimed at cutting bureaucracy /Red Tapism
- Second largest market for Facebook & Linked in
As mentioned before India is a land of huge opportunities for countries , corporates and professionals** alike for many , many years to come
And we at Horton India – are geared to support corporates & professionals to tap these opportunities and are in the process of building / bolstering our team & expanding our presence to meet the Challenges of the Emergent India ..A Force in the Making !!
* HSBC Report
* Report by Bank of America Merrill Lynch
* Forbes Asia
** Indian Planning Commission Reports
*** USDA -United states Department for agricultural & economic research