Paper: GS – III, Subject: Economy, Topic: Growth and development, Issue: India’s Economic growth.
Context:
India is approaching a significant milestone with its GDP at $4.2 trillion, on the verge of becoming the 3rd-largest economy globally.
Key Highlights:
India’s economic scenario to become 3rd-largest economy:
- Surpassing Japan: India has surpassed Japan and is set to overtake Germany in GDP size in the coming years.
- Average GDP growth since 2014: 6.4%, peaking at 7.4% in the latest quarter.
- Inflation: Declined from 9.4% in 2013–14 to 4.6%, ensuring macroeconomic stability.
Infrastructure Transformation:
- National Highways: Expanded from 91,287 km (2014) to 1,46,204 km (2024). Speed of construction increased from 12 km/day to 34 km/day.
- Last-mile connectivity: Focus on rural road development with 99% rural inclusion.
- Railways: India is now the world’s 2nd-largest cargo transporter. Passenger volume is over 30 million daily.
- Increased efficiency: Efficiency boosted through dedicated freight corridors especially Northeastern connectivity improved.
- Aviation Sector: Operational airports increased from 74 (2014) to 160 (2024). UDAN scheme connects remote and regional towns. India targets 300 airports by 2047.
- Urban Transformation: PM Gati Shakti Mission aims to integrate multimodal logistics systems. India’s metro network is the 5th largest globally, spanning 1,164 km.
- Energy & Sustainability:
- Solar capacity: Increased from 2.6 GW (2014) to 65 GW.
- Renewable energy share: Now 33% of total capacity.
- India ranks 4th in wind energy and 3rd in total RE capacity.
- Digital Public Infrastructure (DPI):
- Platforms: UPI, Aadhaar, Jan Dhan.
- DPI adopted by 12 countries.
- DPI enables real-time payments, digital governance.
- Digital transactions reached 3–4% of GDP annually.
Social & Economic Empowerment:
- 171 crore people gained ID-based benefits via Aadhaar.
- Poverty rates dropped: 21.2% (2013-14) to 11.28% (2022-23).
Business & Regulatory Reforms:
- GST Reforms: Reforms in GST, simplification of regulations, ease of doing business focusing on reducing compliance burden, enhancing competitiveness and deepening integration into global supply chains.
Conclusion:
India’s economic and infrastructure journey over the past decade signifies a resilient, self-reliant, and digitally empowered nation. With continued reforms and global outreach, India is well-positioned as 3rd-largest economy to shape the global economic order in the 21st century
https://indianexpress.com/article/india/indian-economy-poised-to-take-off-says-piyush-goyal-6231598
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