Recent data suggests that India’s
economic performance is consistent and IMF predicts a robust growth rate of 7.4
% for India’s economy in 2017. There are many long term changes such as
urbanization, the ever increasing middle class and the spending capacity of the
people powering it’s competitiveness and in turn the consistent economic
success. Citizens have better access to employment, education, health, and so
Due to urbanization a huge
consumer base is formed which is a good indication for both global and local
The infrastructure also got a
boost as a result of urbanization. Again this is an opportunity for both
private companies as well as government. There will be need of more housing,
transportation, education & health institutions and utility services like
power, drinking water, sanitation and so on. State may compete with each other
provide better infrastructure to attract companies and tap resources.
But what makes it more
sustainable is recent government initiatives and technological advancements. If
the most significant and powerful changes to be listed the recent
implementation of goods and service tax (GST) will be the numero uno. Now India’s
29 states will be really a unified market. Earlier all the states had different
tax structures for different goods.
Why some states are very
developed in India and why can’t industries come up in economically
underdeveloped states? The problem is – lack of infrastructure. Governments in underdeveloped
states cannot provide basic facilities such as electricity and water. This is
because these states are not rich. Why are these states not rich? Tax
collections are highest in manufacturing states. GST being consumption based
tax, tax collection will go to the states in which the goods are consumed, and
not where they are manufactured. This will give all the state the opportunities
to be competitive and opportunity to economically perform.
Government’s push for financial
inclusion now showing the effective difference.
A large-scale independent national
survey shows 99 percent of households have at least one member with a bank
account (Bhattacharya 2016). Financial inclusion is linked to a country’s
economic and social development, and plays a role in growth and employment. Due
to financial inclusion bot the government and people truly involved in economy.