A major debate has unfolded around India’s economic prospects. On the one hand, you have Prime Minister Modi declaring at the 2018 World Economic Forum that India’s economy, already the fifth largest in the world, will double, to $5 trillion, by 2025. On the other hand, you have the media pointing out the country’s shallow middle class, growing inequality and joblessness, and a trail of multinationals frustrated by the lack of China-like success in India.
While India remains a challenging market, there are at least three reasons global firms cannot overlook the country without consequences.
India has seen growth in infrastructure spending. The country has been increasing its spending on infrastructure such as airports, cities, hotels, ports, roads, bridges, hospitals, and power plants. During the past three years, for instance, the newly formed Andhra Pradesh State has made massive investments in building out its infrastructure. India has expanded its solar generating capacity eightfold since 2014 and achieved the target of 20GW of capacity four years ahead of schedule. India plans to catalyze $200-$300 billion of new investment in renewable energy infrastructure over the next decade. Click to Read More
The advancements in technology are revolutionizing the way every industry and segment functions, with the financial domain being one of the biggest beneficiaries. The amalgamation of technology in finance has entirely transformed the way transactional operations are being handled. So much that the traditionally cash-driven Indian economy has gradually warmed up to fintech, with the term ‘fintech’ being mentioned in the Union Budget speech for the first time ever in 2019. Driven by factors such as a multi-fold increase in investments made, smartphone penetration, bolstered e-commerce and subsequent rise in customer expectations, the fintech segment has grown exponentially, pervading our daily lives and impacting most of our financial decisions. According to a report from NASSCOM and KPMG India, the fintech market in India is forecasted to double from its current value to reach USD 2.4 billion by 2020. Moreover, the transactional value for this sector is estimated to grow at a5-year CAGR of 22%, reaching USD 73 billion by 2020. Click here to read more
India has been one of the fastest growing large economies in the world, the International Monetary Fund (IMF) has said, asserting that the country has carried out several key reforms in the last five years, but more needs to be done.
Responding to a question on India’s economic development in the last five years at a fortnightly news conference here, IMF communications director Gerry Rice Thursday said, “India has of course been one of the world’s fastest growinglarge economies of late, with growth averaging about seven per cent over the past five years.”
“Important reforms have been implemented and we feel more reforms are needed to sustain this high growth, including to harness the demographic dividend opportunity, which India has,” he said. Click here to read more