{"id":4731,"date":"2023-11-28T12:13:10","date_gmt":"2023-11-28T12:13:10","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=4731"},"modified":"2023-11-28T12:16:03","modified_gmt":"2023-11-28T12:16:03","slug":"indias-growth-story-decoding-indias-economic-blueprint","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/indias-growth-story-decoding-indias-economic-blueprint\/","title":{"rendered":"India\u2019s Growth Story: Decoding India\u2019s Economic Blueprint"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">India&#8217;s economic journey has been a captivating blend of ancient heritage and a forward-thinking vision for the future. As an emerging market, India has showcased remarkable growth. India currently boasts a GDP of approximately $3.75 trillion<sup>1<\/sup><\/span><span style=\"font-weight: 400;\">. Projections indicate an ambitious milestone: becoming a $5 trillion economy by 2027<sup>2<\/sup><\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India&#8217;s manufacturing sector has experienced a significant growth story, evolving from traditional practices to modern, technology-driven production, driving economic expansion and job creation. With the government&#8217;s &#8216;Make in India&#8217; campaign and manufacturing fund incentives, India is poised for a thriving manufacturing future.<\/span><\/p>\n<h2><b>Government initiatives encouraging growth<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Indian government has played a pivotal role in creating an environment conducive to economic prosperity. The &#8216;Make in India&#8217; scheme launched nearly a decade ago has attracted substantial Foreign Direct Investment (FDI), since its inception. An essential driver of this initiative is the Production Linked Incentive (PLI) scheme across 14 sectors. This scheme aims to fortify supply chains, enhance competitiveness, and boost export potential, offering significant gains in production and employment, especially for MSMEs. Complementing these initiatives, &#8216;Atmanirbhar Bharat&#8217; fosters self-reliance, revitalizing the economy post-Covid-19. It prioritizes local production, reducing dependence on imports and creating job opportunities, particularly in pivotal sectors like power, coal, defence, aviation, and mining.<\/span><\/p>\n<h2><b>Key Industries poised to boost the economy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Various sectors have made impressive progress towards achieving self-reliant production and impactful exports. Some of them are:<\/span><\/p>\n<ul>\n<li><b>Software and Services:<\/b><span style=\"font-weight: 400;\"> India has been one of the major exporters of IT and BPO services over the last two decades. India is also becoming a major vendor to the world when it comes to SaaS and other tech offerings. Additionally, the implementation of India Stack, which includes Aadhaar and the Unified Payments Interface (UPI), has played a pivotal role in unlocking India\u2019s internet economy.<\/span><\/li>\n<li><b>Fintech &amp; Financial services:<\/b><span style=\"font-weight: 400;\"> With the advent of smart apps and the Internet, fintech services have gained great traction post-pandemic. The sector is expected to propel growth in upcoming years.\u00a0<\/span><\/li>\n<li><b>Renewables:<\/b><span style=\"font-weight: 400;\"> Meanwhile, the renewable energy sector is experiencing a surge, driven by robust policies and investments, particularly through initiatives like the National Hydrogen Mission and a focused approach to solar energy, attracting substantial Foreign Direct Investment (FDI) inflows.\u00a0<\/span><\/li>\n<li><b>Infrastructure: <\/b><span style=\"font-weight: 400;\">Strategic initiatives like the Industrial Corridor Development Programme<sup>3<\/sup><\/span><span style=\"font-weight: 400;\"> comprising 11 corridors are enhancing connectivity and logistics infrastructure in India. Major projects like Bharatmala Pariyojana and the Sagarmala Project are revolutionizing connectivity and logistics networks, bolstering the ease of doing business and facilitating seamless trade.<\/span><\/li>\n<\/ul>\n<ul>\n<li><b>Manufacturing: <\/b><span style=\"font-weight: 400;\">This combination is enabling India\u2019s manufacturing sector to grow to the next level. The sector, encompassing key sub-sectors such as chemicals, automobiles, textiles, electronics, and pharmaceuticals, is indeed at the forefront of the country\u2019s economic transformation.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The government&#8217;s goal is to elevate the contribution of manufacturing to 25% of GDP<sup>4<\/sup><\/span><span style=\"font-weight: 400;\">, propelling India towards becoming a global factory. Noteworthy achievements include the surge in exports to $450 billion in FY23<sup>5<\/sup><\/span><span style=\"font-weight: 400;\">, a significant increase from the pre-Covid level of $330 billion in FY19.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some sub-sectors that are powering this sector:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Chemicals:<\/b><span style=\"font-weight: 400;\"> In the realm of chemicals, India stands as the 6th largest global producer<sup>6<\/sup><\/span><span style=\"font-weight: 400;\"> and 3rd in Asia, playing a pivotal role in providing foundational elements for various industries spanning across textiles, paints, pharmaceuticals, and agrochemicals.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Automobiles:<\/b><span style=\"font-weight: 400;\"> The auto industry is poised for significant growth with initiatives like the Automotive Mission Plan, targeting the creation of 3.2 million<sup>7<\/sup> <\/span><span style=\"font-weight: 400;\">direct incremental jobs by 2026 and requiring an investment of $25-30 billion<sup>8<\/sup><\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Healthcare &amp; Pharma: <\/b><span style=\"font-weight: 400;\">Deemed as \u201cPharmacy of the World,\u201d India has the 3<\/span><span style=\"font-weight: 400;\">rd<\/span><span style=\"font-weight: 400;\">\u00a0largest pharma industry in the world in terms of volume<sup>9<\/sup>.<\/span><span style=\"font-weight: 400;\"> Biotech products have increased from 10 products to more than 700 in 2022<sup>10<\/sup>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Defence:<\/b><span style=\"font-weight: 400;\"> Driven by \u2018Aatmanirbhar Bharat\u2019 initiative, there has been a big push on indigenous defence manufacturing infrastructure. India is now exporting defence equipment to over 75 countries<sup>11<\/sup>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Electronic Systems:<\/b><span style=\"font-weight: 400;\"> India is committed to reaching USD 300 bn worth of electronics manufacturing and exports by 2025-26<sup>12<\/sup>.<\/span><\/li>\n<\/ul>\n<p><b>This is an investor education and awareness initiative by Axis Mutual Fund. Investors have to complete one-time KYC process. <\/b><\/p>\n<p><span style=\"font-weight: 400;\">These industries collectively underscore India&#8217;s commitment to self-sufficiency and global competitiveness.<\/span><\/p>\n<h2><b>India&#8217;s transformative economic initiatives<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In this favourable environment of a conducive policy environment, India\u2019s rising geo-political prowess in a multi-polar world, strong public and private investments, domestic demand, digital initiatives, and surging exports, the time is ripe to invest in India.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India&#8217;s growth story is a testament to its unwavering spirit and visionary governance. With manufacturing leading the charge supported by robust sectoral growth, the space holds a huge promise for investors.\u00a0<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">Source: IBEF, www.nicdc.in, ww.makeindia.com, IBEF Report \u2013 May 2023, Avendus Spark. Data as at 31 August 2023<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Disclaimer:<\/strong> Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Brokerage will not exceed the SEBI prescribed limit. Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. s\u00a0 For more details, please visit: <\/span><a href=\"https:\/\/www.paytmmoney.com\/stocks\/policies\/terms\"><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com\u00a0<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><em>References:<\/em><\/p>\n<p><sup>1<\/sup><a href=\"https:\/\/www.forbesindia.com\/article\/explainers\/gdp-india\/85337\/1\">https:\/\/www.forbesindia.com\/article\/explainers\/gdp-india\/85337\/1<\/a><\/p>\n<p><sup>2<\/sup><a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/indicators\/india-to-become-usd-5-trillion-economy-third-largest-by-2027-rbi-dg-patra\/articleshow\/103844727.cms\">https:\/\/economictimes.indiatimes.com\/news\/economy\/indicators\/india-to-become-usd-5-trillion-economy-third-largest-by-2027-rbi-dg-patra\/articleshow\/103844727.cms<\/a><\/p>\n<p><sup>3<\/sup><a href=\"https:\/\/www.nicdc.in\/index.php\/projects\/national-industrial-corridor-development-programme.html\">https:\/\/www.nicdc.in\/index.php\/projects\/national-industrial-corridor-development-programme.html<\/a><\/p>\n<p><sup>4<\/sup><a href=\"https:\/\/www.zeebiz.com\/economy-infra\/news-india-is-keen-to-increase-its-manufacturing-share-in-gdp-from-17-to-25-union-minister-hardeep-puri-256954#:~:text=Union%20Minister%20Hardeep%20Singh%20Puri,cent%20to%2025%20per%20cent\">https:\/\/www.zeebiz.com\/economy-infra\/news-india-is-keen-to-increase-its-manufacturing-share-in-gdp-from-17-to-25-union-minister-hardeep-puri-256954#:~:text=Union%20Minister%20Hardeep%20Singh%20Puri,cent%20to%2025%20per%20cent<\/a><\/p>\n<p><sup>5<\/sup>Avendus Spark. Data as at 31 August 2023.<\/p>\n<p><sup>6<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/chemicals\">https:\/\/www.makeinindia.com\/index.php\/sector\/chemicals<\/a><\/p>\n<p><sup>7<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/automobile-components\">https:\/\/www.makeinindia.com\/index.php\/sector\/automobile-components<\/a><\/p>\n<p><sup>8<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/automobile-components\">https:\/\/www.makeinindia.com\/index.php\/sector\/automobile-components<\/a><\/p>\n<p><sup>9<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/pharmaceuticals\">https:\/\/www.makeinindia.com\/index.php\/sector\/pharmaceuticals<\/a><\/p>\n<p><sup>10<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/biotechnology\">https:\/\/www.makeinindia.com\/index.php\/sector\/biotechnology<\/a><\/p>\n<p><sup>11<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/defence-manufacturing\">https:\/\/www.makeinindia.com\/index.php\/sector\/defence-manufacturing<\/a><\/p>\n<p><sup>12<\/sup><a href=\"https:\/\/www.makeinindia.com\/index.php\/sector\/electronic-systems\">https:\/\/www.makeinindia.com\/index.php\/sector\/electronic-systems<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s economic journey has been a captivating blend of ancient heritage and a forward-thinking vision for the future. As an emerging market, India has showcased remarkable growth. India currently boasts a GDP of approximately $3.75 trillion1. Projections indicate an ambitious milestone: becoming a $5 trillion economy by 20272. India&#8217;s manufacturing sector has experienced a significant<a href=\"https:\/\/www.paytmmoney.com\/blog\/indias-growth-story-decoding-indias-economic-blueprint\/\">Continue reading <span class=\"sr-only\">&#8220;India\u2019s Growth Story: Decoding India\u2019s Economic Blueprint&#8221;<\/span><\/a><\/p>\n","protected":false},"author":24,"featured_media":4742,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-classic-ns.php","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/4731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=4731"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/4731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/4742"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=4731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=4731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=4731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}