India is currently projected to become the 5th largest economy of the world, surpassing the United Kingdom and France. But, as is the case with any development project, the path to this goal is littered with challenges, naysayers and global influencers barring the way. In the face of these obstacles, Prime Minister of India, Narendra Modi, is turning to grass root solutions and putting India’s Entrepreneurs at the centre of sustainable growth for India. It seems that Narendra Modi plans to continue to repeat his mantra of “Make In India”.
India is currently the world’s seventh largest economy by nominal GDP, and third-largest when viewed by purchasing power parity (PPP). Using an economic development strategy that relies on a mixture of growing a market economy, along with increased regulatory oversight, and the governmental provision of public services, India has steadily been strengthening its economic might. In line with Prime Minister Modi’s primary objectives, India is on track to soon become a USD 5 trillion economy, having already surpassed China as the world fastest growing economy. However, reaching this target will be dependent on economic and social growth, through inclusive development.
With the second largest population in the world, currently reported to be around 1.37 billion people, there are numerous social challenges in need of investment. The longstanding challenge of providing education, healthcare, housing, and social security provisions still remains, as 68.8% of the country is currently living on less than USD 2 a day. But it appears that the Modi government 2.0, has a plan for this as well. One solution currently being explored is the reworking of the country’s current scholarship scheme to increase disadvantaged students’ access to schools and education.
Then there is Modi’s famous ‘Make in India’ mantra, which is more than just a snappy slogan. With this scheme Modi has been able to create local employment opportunities, and encouraged the creation of products that are needed by those local communities. What is more, the program has created numerous opportunities for women, promoting them as leaders within households and communities, and providing opportunities for female entrepreneurship. The scheme is focused on developing local talent and creating jobs.
Supporting the ‘Make in India’ initiative is another of Prime Minister Modi’s catchy slogans, ‘Zero defect, zero effect’. This slogan speaks to the positive impact of micro, small, and medium enterprises (MSMEs) producing high-quality, ‘zero defect’, products, while having ‘zero effect’ on the environment. Climate change mitigation and the environment are at the heart of the Government of India’s policies. It has formed partnerships and coalitions with neighbouring countries, including in its latest initiative to introduce Disaster Resilient Infrastructure. In India, the government seeks to ban some single use plastics by 2nd October this year, and all single use plastics by 2022.
The Modi government 2.0 seems to have answers for the challenges facing India’s larger scale economy, which is also in need of investment. The government has been proposing new forms of infrastructure, legislative reforms, and foreign trade deals. For the country to go from its current USD 2.7 trillion economy to almost double will require 9% growth per annum. In order to achieve this goal Prime Minister Modi has been growing India’s international trade ties, while at the same time striving to attract new high-tech manufacturing businesses. This latter move is an effort to develop ‘Digital India’, an initiative aimed at improving overall digital infrastructure across the country. There has also been much discussion of more liberalising in the policies around foreign direct investment, to make it easier for foreign partners to do business in this budding economy.
Narendra Modi’s landslide victory in May demonstrated his popularity with the people, but with such a diverse country, he will never be able to please all of the people all of the time. In an effort to keep spirits high, Prime Minister Modi has made many bold promises within the first few months of his second term in office. A budget released within his first 50 days talked of electric vehicles, reducing tax rates to benefit small domestic companies, and bring cooking stoves into every home. His government has also taken a firm stance on corruption, and governance, and put forth a number of ‘people-oriented’ decisions. Above all of the other challenges, Prime Minister Modi has prioritised the fight against terrorism to ensure business and citizens are safe across India.
India has chosen democracy and development over the approach taken by its neighbour China, that of communism and capitalism. Sadly however, despite India sharing similar values to the European Union on democracy, human rights, fundamental freedoms, and support for rules-based global order, the European Union has thus far shown a preference for communism and capitalism, with China as its preferred trading partner. As the two largest democracies in the world, the European Union and India should be the optimal valuable partners in global economic, political and social development projects.
Source : https://eptoday.com/entrepreneurship-fuels-democracy-and-development-for-india/