How Does 2023 Look For the Indian Economy Viz A Viz Other Growing Economies?

Indian Economy to be among fastest Growing Economies

In a recent Summit, the Indian Union Minister for Petroleum and Natural Gas addressed that the Indian Economy is on the verge of becoming globally the third largest and a nearly 10 trillion-dollar economy globally by the year 2047.

How does the Future of the India Economy look?

Despite several challenges and a competitive market scenario, India commits to moving towards a more sustainable future through environmentally friendly policies and using sustainable energy to meet energy requirements. During the recent global crisis, the Indian Economy has witnessed a boost in three sectors, namely- food, fuel, and energy. With a degree of confidence, credibility, guidance, and assuring energy availability, India was able to navigate out of this scenario. Additionally, business consulting firms in India have contributed to the economy’s growth and development.

Apart from India creating a mark in the energy sector, modernization and digitization have been well-adapted by businesses across the country. This allows for optimal functioning of operations. According to provisional estimates of GDP released on 31^st May 2022, the Indian economy has managed to recover to the pre-pandemic GDP level of 2019-2020. The real GDP growth of 2021-2022 is 8.7% compared to the GDP growth in 2019-2020, which is almost 1.5% higher. Additionally, the investment rate during the 4^th quarter pushed to top levels along with the capital utilization, which again rose higher in the 4^th quarter. All of these data indicate increased economic demand and consistent growth of the Indian economy.

Furthermore, future capital spending of the Indian Government will be supported by factors, such as an organized tax system, digitization of tax filing, tax buoyancy, etc., which will contribute massively to the economy’s growth. Also, the sowing of Kharif and the use of advanced technology in the agriculture sector have enhanced growth.

Can FDI Impact the Growth of the Indian Economy?

With globalization, several countries have witnessed a considerable inflow of FDI during the last two decades. However, India’s liberalization policy, the current pattern of economic changes, several government policies, guidance from top management consulting firms in India, and enhanced market potential have allowed several foreign investors to enter this market and sustain success.

Even during the pandemic, India has pulled in several investments where almost 98% is through the automatic route and the rest are through the government route.

In the year 2021-2022, India received nearly USD 83.6 billion in foreign inflows, which is considered to be the highest ever! FDI has invested across 57 sectors and over 30 union territories in India. To ensure ease of doing business here, India promises to attract USD 100 billion in FDI in the recent financial year.

A significant number of FDIs in India will boost employment possibilities, enhance the country’s export performance, encourage several initiatives in export, and bring advanced technology and tools for skill development. It will also encourage international brands to enter the Indian markets and break the domestic monopolies, and initiate a more competitive market.

Foreign Direct Investment Projections for FY 2022-23

India has become a favorable destination for FDI inflows in recent years. Named one of the top 50 most innovative countries in the world, India has become a favorite destination for FDI inflows in recent years. As of 2019, India ranked 68th in the Global Competitive Index. Here is a list of the recent projections for the financial year 2022-2023:

• The recent FDI inflows will promote domestic manufacturing, strengthen the supply chains, boost exports, and push India’s industries to be more competitive.
• The recent PLI scheme will provide considerable gains for employment and production facilities. These benefits will also extend to the MSME systems.
• Since the use of semiconductors is imperative in developing the world economy, the Government of India has recently initiated a USD 10 billion policy that includes building a design ecosystem and a semiconductor in India.
• The government has announced several reform measures to boost the Make in India initiative. This includes the reduction of unnecessary compliance burden through liberalization of regulations, amendment of several laws, reduction of cost, digitization, etc.
• Flexibility in hiring employees through labor reforms, ensuring quality control orders in local manufacturing, and reducing corporate taxation are some other initiatives.
• New policies aim to encourage and promote local industries by motivating local manufacturers to participate in several public procurement projects.

How India Entry Consulting firms can be an effective tool for the Indian Economic Growth Strategy?

The top management consulting firms in India, such as Tecnova, hold considerable importance as they contribute majorly to shaping the Indian economy. These business consulting firms carry out major functions that include detecting the current market scenario, finding future opportunities, researching thoroughly, and shaping companies’ strategies accordingly. Here is how they help contribute to the Indian economic growth strategy:

• Experts in these consulting firms try to anticipate opportunities and detect threats in the future existing within the systems. They use their experience to conduct a SWOT analysis to determine growth opportunities in global businesses.
• A business owner can overlook certain areas that require speculation and development, but Management consulting firms operate in these areas and try to identify possible issues.

As India grows to develop in various other sectors, management consulting firms in India provide innovative ideas that the Government uses to initiate breakthrough insights and hence contribute to the development of businesses.

Reference

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