While speaking at the US – India Businesses and investment opportunities event in New Delhi, the finance minister of our country said that the Global Economic outlook continues to remain challenging and the economy of India is also not insulated from the impact of these emerging global developments.
However, she pointed out that India has carved out its growth trajectory and has witnessed the leaps and bounds of various events like the support of the southwest monsoon for agriculture and agro-businesses, strong corporate balance sheets, public investment, and customer and business confidence, and the retreating threat of COVID pandemic.
India has emerged as one of the fastest growing economies of the world and has recently surpassed the UK to become the fifth-largest economy in the world for over 10-15 years it shall be among the top 3 economic powers Globally.
Highlighting some of the major measures the Indian government has taken to boost the economy, Nirmala Sitaraman mentioned the success that Production Linked Incentive (PLI) scheme has brought in some sectors of the state, Semiconductor and the PM gatishakti program to name a few.
A vital component of the Indian growth story is also the inflow of foreign capital from various sources. Key reforms have been made to encourage the same like rationalization and simplification of the Foreign Portfolio Investors (FPI), increased aggregate foreign investment limit, an introduction of a common application form (CAPF) for registration of FPIs, and launching of new debt channels like Fully accessible route(FAR) and Voluntary retention route (VRR). The sustained inflow of FPIs points to the success of these measures. It is significant to note that the US is the top source country of FPI investment in the country.
India has transformed into a digital economy by leveraging the foundation of a billion bank accounts, a billion digital identities(aadhaar) and many Mobile phones. She said that today we have a powerful story about digital India redesigning our future and eyes on the future.
To boast, we have the highest number of developing FinTech companies.
The ties between US and India have strengthened as the US is India’s biggest trading partner and the bilateral trade between countries has reached an all-time high of $150 billion in 2021. Our finance minister considers the top 20 economies of the world a very potent network that can bear the responsibility of ‘global spillover’ of their economic and policy decisions. Atmanirbhar Bharat or the policy of self-reliance means that India is only increasing its share in the manufacturing sector of the GDP but is not a complete protectionist and is ready to trade bilaterally and multilaterally with different countries.
As our country is envisioned to be a trillion-dollar economy with the facilitation of trade in different countries globally it has sparked a fire of self reliance too in order to enhance the overall development of its citizens from all backgrounds.
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