How India’s economy drastically changed in last ten years
India has undergone a significant metamorphosis during the previous 12 years, moving from one of the Fragile Five economies to a powerful, self-sufficient, data-driven engine of global growth that is well-prepared to handle the complexities of the digital century with total sovereignty.
The post on The Organise remarked, “The country changed from a passive tech user to a sovereign builder of its own destiny by shifting from short-term expenditure excesses to an aggressive Rs 12. 22 lakh crore public Capital Expenditure strategy (a massive 4. 4 percent of GDP). ”
It emphasized that, as part of the shift, in 2014, public sector banks were suffering from stressed debt, with a terrifying peak of 11. 18 percent of their Gross Non-Performing Asset (NPA) ratio as a result of irresponsible lending to the business sector.
The government authorized public sector banks with the Insolvency and Bankruptcy Code (IBC) and pumped a record Rs 3. 10 lakh crore into their vaults as part of the rescue operation. The sharp rebound was evident in a multi-decade low of 2. 5% in NPAs.
These financial institutions are spurring economic expansion by generating record yearly net profits that exceed Rs 1. 4 lakh crore.
A new significant adjustment has been made in the IT industry. For many years, India created the software for the globe, but it imported all of the silicon hardware needed to run it.
The government implemented a Production Linked Incentive (PLI) Scheme worth Rs 1. 97 lakh crore in order to break this cycle. As a result, the nation became the second-largest maker of mobile devices in the world, with yearly mobile exports exceeding $28 billion.
Additionally, India is establishing semiconductor production facilities to reduce imports. In Gujarat’s Dholera, Tata Electronics is creating a $11 Billion mega-fab, working with seasoned international chip makers, and utilizing cutting-edge ASML lithography equipment. The article stated that once finished, this one factory will reduce front-end chip imports by $10 billion to $12 billion annually.
In the telecom market, state-owned BSNL is deploying a 5G network that is fueled for the first time by a fully homegrown technology stack developed by a local consortium comprised of C-DoT, Tejas Networks, and TCS. This puts India in one of only four nations that possess their own radio network equipment.
Additionally, by implementing a thorough Semiconductor Vision for 2035, India is aiming to establish a local ecosystem worth $120 billion to $150 billion, maintaining an unheard-of 55% to 70% of the value addition exclusively within its borders, rather than merely putting chips in boxes.
High-speed Vande Bharat express trains are also cited as an example of the new technological advancement. Before, India used to spend a lot of money importing blueprints for high-speed trains from Japan or Europe. These sleek trains, designed and built from scratch by engineers at Chennai’s Integral Coach Factory (ICF), were delivered at half the price of imported trains.
Additionally, indigenous space technology businesses like Skyroot Aerospace are shattering long-standing government monopolies.
The article says that Skyroot is getting ready for the first flight of its fully commercial orbital launch vehicle, Vikram-1, with the goal of capturing a piece of the $25 billion worldwide market for small satellite launches, after having launched India’s first private rocket in 2022.
This also highlights India’s unprecedented data center explosion, which has increased its operational capacity to 1. 6 GW. India implemented the Green Energy Open Access Regulations to maintain their operations without consuming fossil fuels.
India’s non-fossil installed capacity has increased to an incredible 283. 46 GW, with a fast-tracked, 15-day clearance window supporting a 53-fold explosive expansion in pure solar capacity to 150. 26 GW.
