WCD Times: While the world is heading towards Economic Recession in 2020, Can India become the global power house as the Next Superpower? While it’s rising unemployment and Rising inflation on its hands. Let’s find out here.
In 1991 when the Soviet Union collapsed, india opened its doors to the world’s Economies. As India was the major trade partner for the Soviet Union, india was having a closed-door trading after its independence from Great Britain in 1947. This is why everything changed to started play good for India. Western countries started to come in with foreign investments with the help of IMF and the World Bank to India. India became one of the biggest contributor in the 90s economic Revolution.
India went into get huge changes, which includes Reduction of import tariff, reduction of taxes, deregulations of markets and foreign direct Investments. The liberation in 90s credited india’s economy to Skyrocket from 1990s to 2000s. Before 2015, India’s GDP was going on a slower pace behind China, In 2015 India surpassed China as world’s fastest growing economy from 2005 to 2012. Lots of investment started to pour in, foreign companies like Microsoft, Siemens, foxconn, Nokia, Samsung, Vodafone, Google, Amazon, Big automobile companies and The FDI investment in infrastructure development came into india.
India’s Average annual rate has grown from
3.5 % from 1950 to 1980
7.7 % from 2002 to 2012
The annual rate peaked at 9.5 % from 2005 to 2008.
India’s per capita also increased as a GDP from
$2455 USD in 1978
$3042 USD in 2005
$3900 USD in 2012
Jobs in technology and business sector boomed, many new Indian companies were born like Flipkart, GoAir, kingfisher, Snapdeal, Ola, Mahindra and Mahindra, infosys and many BPO companies were born.
Despite so many redtapes removed, many foreign companies came in and many Indian companies were born, unemployment was rising by 2.5% yearly. Indian states like Gujarat, Maharashtra, Tamilnadu and Karnataka contributing most to Indian economic growth and jobs. In the other states of India most of them were not attracting Investments. That’s the time the world economy was hit with recession in 2008 to 2009. While the U.S, Europe, China were struggling and India was surviving.
India’s FDI inflows in
2007 to 2008 was $24 billion
2008 to 2009 was $35 billion and proceeding.
Indian government in 2012 Loosen the FDI rules by 51% in the retail multi brand outlet and in 2019 days in the retail outlet has become 100%.
After 2013 India saw growth in all sectors even after the 2008 and 2009 recession, thanks to former india Prime Minister Manmohan Singh. Later, indian government changed in 2014, India was going on the right track to become the fastest growing economy in the world and that it happened in 2015. The Economist Around the World started to predict that India will become a superpower within 10 years to 20 years time behind the US and China.
In 2016 something big happened, which India didn’t even still recover from it. The Indian government demonetised its high value currencies,which created panic among the Indians, investment dropped, 85% of the cash flow was stopped, inflation started to rise, India fell far behind China and India lost its fastest growing economic status.
While still india is recovering from its biggest economic downfall, The india goverment under PM Nrendra Modi, soon introduced a Flawed taxation called GST which put India’s economy into jeopardy. Traders were not happy and the foreign investment started to pull out of all the money out of India. Many Indian companies started to go bankruptcy, unemployment Spiked to the highest in Indian history, Unemployment started Rising by 41%.
Indian government started to put higher taxes on business, small businesses, online Traders and infrastructures. Which made Many of the companies and businesses to go out of business. After 2018 to 2022 losing its GDP growth gradually to 4.5% . Which India should have achieved with its GDP growth of 7.5% . While the crude oil prices rising, USA China trade War, India China and the US are going under protectionist taxation policies.
The world economy started to charter more, India’s unemployment going into the lifetime highest, no company’s coming in. Fdi inflows coming in became very much lesser, india’s dream of becoming superpower is now not in the agenda.
But India sorting out it’s mistake slowly, but it has a long way to catch up with its dreams and becoming a superpower.
What do you think? Can India become a superpower as predicted by 2030 or 2040.