Country’s economy is growing faster than China’s, and its short-term goal is to become a $5-trillion economyThe Indian economy is now growing faster than any of its Brics partners, outstripping even China. Meanwhile, SA and Brazil are deindustrialising, and Russia’s economy is crumbling because of its ill-considered war with Ukraine.
The government has also introduced incentives to stimulate manufacturing, particular in electronics and technology. It has focused on increasing investment infrastructure as a catalyst to unlock economic growth. The country’s next budget is set to heavily prioritise capital expenditure to increase employment, investment and local demand.
illovers from recent developments in financial markets in the US and Europe pose a risk to short-term investment flows to emerging markets, including India”. For many years after independence in 1947 India’s economy grew at less than 1% a year on average, but after liberalisation and other reforms in 1991 there was a high growth phase, especially between 2005 and 2008, and recently annual growth has hit 7%.
India’s goal in the short-term is to become a $5-trillion economy, which could be achieved within five years with annual growth of 8%-9%. Former Reserve Bank of India governorRangarajan, one of the world’s most respected central bankers who is a former chair of the Economic Advisory Council to the Indian prime minister, has said if the economy grows at this rate its per capita income will rise to about $3,472.