India's economic progress from 10th to 4th largest in the world under PM Modi's leadership

India is heading towards a new era of Viksit Bharat under the visionary leadership of Prime Minister Narendra Modi. His zero tolerance policy against terrorism and his timely, uncompromising stand on the nation's safety has elevated India's position in the global arena. It is utterly important to discuss the past and the present India under his leadership. Since taking office in 2014, India's GDP grew from 2.03 trillion dollars to 4.18 trillion dollars in the period of 11 years accelerating India from being the 10th to the 4th world's largest economy.

History of China's economy, which was half of India's in 1980, growing 5 times:

In 1980, a systemic change in the world led to the emergence of new commercial strategies, a common commercial model suitable for the then economic environment in the fields of industry, agriculture, services and manufacturing. The whole world took the initiative to move forward in economic development by following this more modern rule-based commercial system, one law, one quality, and following a common rule-based business model. China understood this in time. In 1980, China's per capita GDP was $307. In 1980, China's per capita income was about 21,000 rupees according to today's calculations. At that time, India's per capita GDP was 580 dollars. In 1980, India's per capita income, compared to today, is about 51,000 rupees. China understood this change and took timely and decisive steps.  They have brought about radical changes in their social system, educated their citizens, made them aware of it, trained them, provided them with all-round support and assistance, and provided them with the necessary infrastructure and a suitable commercial environment. With comprehensive preparations, China joined the World Trade Organization (WTO) in 2001. At present, China has become an economy of 19 trillion dollars. And our economy is only 4.18 trillion dollars. In 1980, China, which was half the size of India economically, is now almost five times larger than us. That is, China's economy has grown 10 times more since 1980.

They have been able to understand the future industrial and commercial potential and take the right steps in time and quickly move the economy forward in the right direction. Within 15/20 years, they have fully prepared themselves for this. From 1984 to 2014, the governments in India were minority. It took 30 years to establish a single majority government. During this long period, countries like China have moved forward on the path to achieving specific goals economically.

India had a government of 13 months, sometimes a government of 13 days, sometimes 6 prime ministers in 5 years. In such a politically unstable situation, it is inevitable for the economy to stumble. In such a situation, it has not been possible to provide real education, awareness, training, support and infrastructure to the society. After 2014, under the leadership of Prime Minister Narendra Modi, the country started moving forward with a new vision.

Prime Minister Narendra Modi's various visionary steps and their achievements:

When he took office as the Prime Minister in 2014 ,  a large part of his tenure was spent in the Covid-19 pandemic. Despite that,  India has grown from the 10th largest economy of $2.03 trillion (in terms of GDP, US dollars) to the fourth largest economy of $4.18 trillion in just 11 years. Steps taken for economic progress under Modi's leadership.

1. Make in India: Started in 2014

Objective: This initiative was taken to encourage India's manufacturing sector and bring in foreign investment. Emphasis has been placed on sectors such as automobiles, electronics, defense, textiles, etc.

Achievements:  India's FDI (Foreign Direct Investment) inflows have increased. India has become a leading country in mobile phone manufacturing. Many foreign companies including Apple have opened manufacturing units in India.

2. GST (Goods and Services Tax): Launched in 2017. The biggest tax reform in the history of India.

Objective: To facilitate trade across the country by introducing a single tax system. A uniform tax system was introduced by abolishing multiple taxes at the central and state levels.

Success: This has simplified the tax system. It has benefited medium and small traders. Revenue collection has accelerated.

3. Digital India

Objective:  To make government services easily available through digital means

And to promote e-governance. Including digital transactions (UPI, BHIM), e-hospitals, digital education etc.

Success: UPI (Unified Payments Interface) has transformed India's digital economy into a reality. Crores of people have participated in e-governance services. E-education, e-hospitals, digital ID (Aadhaar) have become popular and transparency and speed have come in service delivery.

4. Pradhan Mantri Jan Dhan Yojana (PMJDY)

Objective:  By providing an opportunity to open bank accounts to the people deprived of banking system, it has been possible to encourage financial inclusion.

Success: As a result, more than 50 crore bank accounts have been opened. It has been possible to send subsidies directly to the poor in a corruption-free manner. DBT (Direct Benefit Transfer) has been implemented, due to which there is no need to pay commission to any person in the middle.

5. Ujjwala Yojana

Objective:  Cooking gas (LPG) connections are provided to women of poor families. Emphasis is given to protecting women's health and environment.

Success: More than 9 crore women have received cooking gas and through this, the health and environment of housewives have improved.

6.  Startup India

Objective:  A new initiative to encourage youth entrepreneurs and to encourage businesses by providing tax exemptions, easy registration, and venture capital assistance and increasing the number of entrepreneurs among the youth community.

Success: The number of unicorn (valuation of more than $ 1 billion) startups in India is more than 100. Interest in starting new ventures has increased among the youth.

7. Aatmanirbhar Bharat Abhiyan

Objective:  Indian industry and manufacturing

A plan to increase capacity and increase reliance on domestic products and build a self-reliant economy after the COVID-19 pandemic. Financial assistance, tax exemptions and easy credit facilities for the MSME (Micro, Small & Medium Enterprises) sector.

Success: Special assistance and loans have been provided to MSMEs. Domestic initiatives in defense and electronics production have increased. As domestic defense equipment production has increased, exports have also increased.

8. Large infrastructure projects (Infrastructure)

Bharatmala, Sagarmala, Smart City Mission, highway construction Etc. Huge investment. Importance is also given to modernizing railways, airports.

Success: Thousands of km of highways have been constructed every year. Bullet Train project has been started and urban development is taking place through Smart City project.

9. Relaxation of FDI policy 

Foreign investment has been opened in several sectors including defense, retail, real estate.

10. Monetary and banking reforms 

Dealing with NPA (non-performing assets) in coordination with the Reserve Bank. Bank mergers have created larger and more capable banks.

With these steps, India has started moving towards a high growth path.

11. Banking and financial sector reforms 

Dealing with the NPA (bad loan) problem, various initiatives have been taken to consolidate banks.

Success: Large and strong banks have been created by merging several banks. Loan recovery has improved with the introduction of Insolvency and Bankruptcy Code (IBC).

12. Demonetization – (2016)

It has been possible to recover black money, solve fake notes, and prevent financing of terrorism. People have become interested in digital transactions since then.

13. Main objective of PLI project is to increase domestic production

To increase domestic production by reducing dependence on foreign products. To attract foreign and domestic investment with advanced technology and production capacity.

Defense Acquisition Policy (DAP) 2020- Domestic production has been given priority in the new defense procurement. More than a hundred items have been added to the import ban list (Negative Import List).

As a result of various reforms, retailers have also realized that their business will also be e-commerce or future trade in the future, which was never understood before. Although, companies like Flipkart and Amazon Online have taken all the benefits of it during this period.

Unorganized sector is the main strength of Indian economy as compared to organized sector

For the past so many years, only organized sector was considered as a threat to economic development. That is why today the entire organized sector provides only 7% employment. And our unorganized sector provides 93% employment. That is why Narendra Modi ji emphasized on the development of our unorganized sector after 2014. ItThis trend continued until 1750 without bringing environmental, tenant reform, amity, or policy.⁰very necessary to convert agriculture and dairy industry into organized sector. The upcoming new agricultural laws are GAP, GMP, GHP, Real time tracing, Good agricultural practice (improved agricultural practice) Good manufacturing practice (improved production practice) Good hygiene practice and improved distribution or export techniques. But in this case, the biggest obstacle in India is that about 90 percent of the country's farmers have land area less than 2 hectares. According to this parameter, they will not get opportunities. Initiatives are being taken to encourage them, educate, raise awareness, train, provide support infrastructure and open the doors of multiple government assistance.

Focus on the development of the unorganized sector

To manage the unorganized sector in such a large scale in an organized manner, the central government under the leadership of Modi ji launched the Ministry of Cooperatives on July 6, 2021. This ministry was started with empty hands because this ministry did not exist before. Therefore, a skilled person like Amit Shah was given the responsibility of this department.

Taking the matter as a priority, work was started with a proper plan to quickly create 10,000 (Farmer Producer Organizations) FPOs, with a target of 2 lakh pax. One of the goals of which is to quickly convert the unorganized into the organized sector.

There is also great potential in the dairy sector. Milk is the main source of livelihood of 9 crore families. Most of them are women. Now, if milk is packed in the Amul pattern (various dairy products), packing and expiry date are mentioned in this pattern, our dairy sector can also be made functional. The livelihood of about 6 crore people depends on fish and meat.  However, the way these are currently being sold in the open market needs to be changed to comply with global parameters. Because the citizens of the country are now very conscious about food products and their quality. Therefore, if this sector of our country is also trained in that way, a bigger market will be available.

Target to create a 40 trillion economy

 Prime Minister Narendra Modi is working towards Viksit Bharat  by 2047, to create a 40 trillion economy. And wehavetheentirescopeandelements for this. This trend continued till 1750 without causing any harm to the environment, Indian reforms, harmony, or policy. At that time, India accounted for about 24 percent of the world's GDP. In the meantime, this model was destroyed during two centuries of British rule . In one fell swoop, India's GDP came down to about 2 percent.

Potential aspects of economic development

750 million of our country's total population are under 29 years of age. No country in the world has such a large youth force. History is a witness that the economic development of a country accelerates in countries where youth power is high. In the era of individualism, we still kept our families together based on social values. We have the largest agricultural land in the world relative to the country's original geographical size. China is three times larger than us. America is also larger than us in terms of area. But no country has more than 14-15% of arable land. We have 58% of arable land. We can feed the largest population in the world organically. We can become a strong economy only on the strength of food. No technology can grow organic crops. Our country has the largest land area in the world. We are capable of feeding the entire world, but for that, there needs to be ongoing certification throughout the world, so that there is no doubt or doubt in the use of that food. So that it can be produced and exported with quality. No technology can produce food, if there is not enough agricultural land. And India has it to a large extent. Our country has climate suitable for every crop which is a blessing from mother nature.

More trust in the country than FDI

A fixed idea was created that economic development is not possible without FDI. India's 3 crore NRIs live abroad. They sent about 120 million dollars last year, which is more than double the FDI. According to the World Gold Council statistics, we have almost half of the world's gold. America's gold reserves are 8 thousand tons, and India has 24 thousand tons. Prime Minister Narendra Modi's target is to reach 40 trillion dollars in the Indian economy by 2047. CII (Confederation of Indian Industry) has given a hint. And we have all the ingredients to meet this target. We have been contributing 24 to 35% to the world GDP. We have done it. The British who came in the intervening 200 years destroyed the model. When that happened, we had 2% of the global GDP left. Even today it is not more than 3%. 105 trillion dollars of the world economy.  The main reasons for the Indian economy gaining momentum under the leadership of Narendra Modi are policy reforms, digital transformation, infrastructure development, manufacturing incentives and global investor attraction. Due to which India has reached a strong position as an emerging economic power today.

India's presidency in G20 and positive aspects

India's leadership in the G20 presidency and global economic discussions is a positive aspect. The G20 is a group of 19 of the world's most influential countries and the European Union, which controls about 85% of the world economy and 75% of trade. India presides the summit from December 1, 2022 to November 30, 2023. The theme of which was: "Vasudhaiva Kutumbakam" meaning "One Earth, One Family, One Future"

India's economic success under G20 leadership

1. Increased investment and brand image - India has been presented as a credible, emerging market to many world leaders and investors. With 200+ meetings held in India, FDI opportunities and entrepreneurial connections have been developed in various cities. India's potential has been highlighted to foreign investors through various G20 summits. India's infrastructure, digital public infrastructure, manufacturing and startup ecosystem have been appreciated worldwide.

2. Accelerated efforts in infrastructure development - Smart cities, roads, airports, etc. were developed in preparation for the summit.. The tourism industry benefits from increased income from hotels, transport, local businesses.

3. India as a global model for digital economy - Indian digital innovations like UPI, DigiLocker, CoWIN, Aadhaar etc. are showcased to the world. Some G20 countries have shown interest in adopting India's digital public infrastructure model. This has led to other countries wanting to cooperate with India, which will enhance technology-based economic relations in the future.

4. Development of logistics and connectivity : India-Middle East-Europe Economic Corridor (IMEC) was announced at the G20, which could become  an alternative corridor for trade in the future. It is a possible alternative to the China-led BRI (Belt and Road Initiative).

5. Environment and Green Economy- International cooperation in climate finance, renewable energy, green hydrogen etc. increases. The concept of an Indian eco-conscious lifestyle called "Lifestyle for Environment (LiFE)" is being discussed worldwide.

6.  Potential for leadership in renewable energy - India is leading the way in green development with the concepts of 'One Sun, One World, One Grid' and 'LiFE (Lifestyle for Environment)', which is helping to attract new green investments.

7. New trade opportunities - New trade routes and agreements have been created for India through bilateral discussions with G-20 member countries. The G-20 presidency was not only an honorable responsibility for India, it was a strategic opportunity through which India has moved to the center of the global economy. Its long-term impact will play a significant role in India's economic development, global leadership and investment attraction.

Failure of previous Congress-led governments

In the history of independent India, some prime ministers and their short-sighted policy decisions had a negative impact on the economy. Whether such steps were taken for political reasons or out of ignorance, their long-term impact damaged the economy.

Jawaharlal Nehru: (1947-1964) Immediately after independence, more importance was given to the development of heavy industry than rural economic development with Gram Swaraj ideology.

There was no significant progress in the development of the agricultural sector, which is one of the economic pillars of India.

Indira Gandhi (Prime Minister: ( 1966-77, 1980-84)

Steps and Impact: Nationalization of banks and industries (1969) and price control policy. The aim was to establish a socialist economy. Although bank nationalization brought some positive results, heavy regulation and license raj stifled the economy.

Steps:- Due to Emergency of 1975 ,the democratic process in making economic decisions was disrupted.  As a result, investo6r confidence weakened. As a result, competition in the world market decreased. Government regulation increased excessively. Productivity and innovation decreased.

Morarji Desai (Prime Minister: 1977-1979)

Many projects during Indira Gandhi tenure were canceled. Due to political vendetta, many ongoing economic programs were stopped. As a result, economic stability decreased.

Manmohan Singh (Prime Minister:( 2004-2014)

The Problem: Policy Paralysis in the second term

In his second tenure, especially in 2010-2014, due to allegations of corruption like 2G spectrum scam, coal block controversy, investments slowed down. As a result, foreign and domestic investor's confidence weakened and nation's economic growth slowed down.

'Operation Sindoor' In addition to giving a strong response to terrorism and Pakistan

New direction of Indian economy:

The whole world has witnessed the great power and effectiveness of India's indigenous weapons in terrorist attacks and recent military operations against Pakistan. India has successfully conducted operations on one target after another, completely repelling Pakistani attacks time and again which is an example of the heroism of our Indian soldiers and modern defense system. India's capability in defense exports has been demonstrated by Operation Sindoor. And confidence of the whole world on Indian defense equipments has increased to a great extent.

Success of Operation Sindoor: The whole world has witnessed the great power and effectiveness of India's indigenous weapons in recent military operations against Pakistan. India has successfully conducted operations on one target after another, completely repelling Pakistani attacks time and again which is an example of the heroism of our Indian soldiers and effectiveness of our modern defense system.  Operation Sindoor has demonstrated India's capability in defence exports and gained world's confidence in Indian defence equipment .

Achieved MINIRATNA status: Munitions India Limited (MIL) and Armoured Vehicles Nigam Limited (AVNL) have achieved MINIRATNA category status after Operation Sindoor, which is a major financial and strategic achievement for them.

India's defence exports have improved significantly from 2014 to 2023. India has expanded its export sector significantly through government initiatives and  self-reliance in defence production.

India's defence exports reached ₹21,083 crore (about $2.63 billion) in the financial year 2023-24, a 32.5% increase over the previous year. Exports have increased 31 times in the last ten years, and India is now among the top 25 arms exporters in the world.

• 2014-2015: India was primarily an arms importer, and defence exports were ₹800 crore (about 100 million).
• 2022-2023: India's defence exports reached ₹21,083 crore (about 2.63 billion). That is, the volume of defence exports has increased 31 times from 2014 to 2023.
• Participation in production and exports Both private sector organizations and Defence Public Sector Undertakings (DPSUs) are playing a significant role in exports.  The private sector contributes about 60% and DPSUs contribute 40%.

Major Defence Exports of India

• Missiles: BrahMos Cruise Missiles, Akash and Pinaka Rocket Systems have seen an increase in exports.
• Weapons: INSAS Rifles, AK-203 Rifles and other Light Weapons.
• Fighter jets and Helicopters: HAL Tejas LCA, Dhruv Helicopter.
• Armoured Vehicles and Tanks: Arjun MBT, BMP-2, T-90S Bhishma Tankı
• Naval Defence Equipment: INS Vikrant, Scorpène-Class Submarines, OPVs.
• Various Government Initiatives
• 'Make in India': Through this initiative, India has become self-reliant in its defence production and increased its export capabilities.
• 'Atmanirbhar Bharat': Efforts have been taken under this scheme to improve India's own technology and increase exports.
• 'Strategic Partnerships': India's exports have been increased through strategic partnerships with various countries.

Target for 2024:- India has set a target of achieving defence exports of Rs 30,000 crore (about 3.6 billion dollars) by 2024-2025. To achieve this target, India has taken many new initiatives to increase its defence production and exports, such as:

Export Policy and Strategic Initiatives:  The government has expanded the 'Open General Export License' (OGEL) to simplify the export process and is issuing export approvals through an online portal. In addition, diplomatic efforts and seminars are being organized to enter foreign markets.

Future Goals and Plans :- India has set a target of achieving defence exports of Rs 50,000 crore by the financial year 2028-2029. To achieve this target, strategic steps are being taken to increase production, technological innovation and enter global markets.

India's Export Strategy:- There are several strategies of the government behind the increase in India's defence exports:

• Technology Cooperation: Many countries propose joint production or technology transfer to purchase technologies and equipments from India.

Simplification of export approvals: Introduction of 'Open General Export License' (OGEL) and online approval system.

• Military policy: India's military policy is strengthening and expanding domestic arms exports.
• Global standard of Indian arms in the global defense market: The increase in the quality of Indian arms and affordable prices are making the country's defense products appealing in the international market.

Future goals and plans: India has set a target of achieving defense exports of 50,000 crores by the financial year 2028-2029. To achieve this goal, strategic steps are being taken to increase production, technological innovation and enter the global market. Under the able leadership of Modi ji, our country is rapidly moving towards achieving the resolve of Viksit Bharat, becoming a model for many countries.