As the general elections for 2024 are nearing, it is very important for citizens of India to understand the importance of voting the right regime for economic prosperity of the country. If we trace back to 2009-10 and 2013-14, the Indian economy witnessed a growth by 6.7 percent per year. This was the period when Manmohan Singh was India’s Prime Minister. And looking back between 2014-15 and 2018-19, the Indian economy has grown about 7.5 percent per year. This is the period when Narendra Modi was spreaheading the government of India as the Prime Minister (from 26 May 2014 onwards). Looking at this data, it is clear that the economic growth during Modi’s term has been faster in comparison to the growth during the Manmohan Singh years.
Furthermore, it is quite noticeable how the Indian economy has improved from 2014 to 2024 if we compare with the time period between 2004 and 2014. Back then, the white paper had claimed that the UPA hurt the economy, or rather robbed the economy. And despite inheriting a healthy economy, the UPA turned it into a non-performing one, the white papers said.
In addition, the white paper said that the NDA government in 2014 showed the economy in bad shape and crisis. With this, the challenge for the new government was to fix the economy with a 'hydra-headed' strategy. It is said that the major flaw is the lack of leadership when it concerns the state of the Indian economy.
Now, if we see the present times, India has set itself to steer its burgeoning economy towards what it has coined as Amrit Kal by 2047. As per the global outlook where 2024 is expected to be slow for many countries worldwide, India will be setting itself to be the fastest growing economy in the world.
"We need to have a strong economy that can create employment opportunities and that can also produce the revenue that we need to defend our country at home and abroad."
- Bob Menendez, United States Senator
So, what is Amrit Kal per se? Amrit Kal is a terminology developed by the reigning government, wherein, Hon’ble Prime Minister Narendra Modi introduced the concept which is also termed as ‘The Era of Elixir’ on India’s 75th Independence day. Here, the government has devised a lucrative path for India towards stable growth and prosperity; thereby offering a robust roadmap pertaining to the country’s self-reliance and sustainable development.
While announcing a new blueprint for India’s next 25 years, PM Modi had made a note of this promising concept. The main focus of this Amrit Kaal concept has been towards improving quality of life for Indian habitants while also closing the development gap between rural and urban areas. The term “Amrit Kaal” can also be stated as the most fortunate time to begin any work.
Amish Mehta, the CEO and Managing Director of Crisil, stated, "India will be an upper-middle income country and the third largest economy, which will be very positive for domestic consumption."
This growth can be attributed to the high capacity utilization across crucial industries, growth prospects from global supply-chain diversification, the push for infrastructural investment, the green transition, and lastly a robust lender balance sheet.
From Finance Minister’s Lens
While presenting the budget, FM Nirmala Sitharaman also said that in the nine years of the government, the Indian economy has increased in size from being 10th to 5th largest in the world While. In addition, India has robustly positioned itself when it comes to governance and innovations with a conducive environment for business. India today boasts of numerous accomplishments which includes World Class Digital Public Infrastructure namely Aadhaar, Co-win and UPI; Covid-19 vaccination drive, proactive roles in frontier areas such as achieving the climate related goal, mission LiFE, and National Hydrogen Mission, to name a few.
What can we Expect Going Forward
Currently, there are five key transitions going on in the road towards its 2047 mission. Firstly, the government is focusing on a shift from rural to urban shift and urbanization. It is expected that by 2047, almost 60 percent of India’s population will be urbanized. For instance, Delhi and Kolkata with populations of around 35 million, while Mumbai with more than 40 million. Secondly, there is said to be a greater formalization of the economy correlated with growth and development. Here, individuals are said to have formal job contracts. MSMEs will see an upsurge and become legally registered. It is said that Indian companies will become larger and more efficient, which is integrated into global supply chains.
Thirdly, it is said that the percentage of the population who will be earning a living from agriculture will decline. This will result in the decrease of Agriculture’s share in GDP around 5% while the percentage of population who will earn a living from agriculture will not be more than 20 percent. Fourthly, there will be a shift away towards commercialization and diversification and larger farms within the agriculture sector.
And lastly, there is said to be a greater citizen participation in governance with the “sabka prayas” theme. There was a colonial chip on the shoulder for years. Today, India at present is a proud country, a resilient India, and an aspiring India.
Today, India is looked upon as a lucrative region for investment, growth, employment and entrepreneurship. Back then, India was struggling with the 2G scam. But now, it has become the country who witnessed the world's fastest rollout of 5G in 2023.
It is also noteworthy to note that the inflation has been brought down to little over 5 percent which previously was growing at a double digit. This was a significant reduction. Previously, the economy was facing a 'twin balance sheet problem.' Now, the same thing has turned the economy into having a 'twin balance sheet advantage' for companies as well as the banking sector. This was further followed with ample capacity to ramp up investments and credit and generate employment.
A Redefining Tax System
The introduction of the GST regime was a much-needed structural reform as per the white paper. The white paper highlighted, "Prior to the introduction of the Goods & Service Tax (GST), the mélange of state levies, more than 440 tax rates, excise duties and the compliance requirements of multiple agencies administering these rates meant that India’s internal trade was neither free nor united. The implementation of the reform entailed unifying 29 states and 7 Union Territories, which, due to their different tax structures, were economic territories on their own."
Without any heating-up of the economy, it said. Referring to the welfare steps, the budgeted capital expenditure has increased over five-folds from FY14 to FY24 (RE). The white paper stated, “Empowerment through welfare has been the leitmotif for our government. We adopted the philosophy “sabka sath, sabka vikas” prioritizing universal access to basic amenities, and a participatory, mission-mode approach in actualising this philosophy.”
Adding to it, the white paper said the NDA government successfully overcame the challenges left by the previous government but is not resting on its laurels. "There are miles to go and mountains to scale before we sleep. The Amrit Kaal has just begun and our destination is "India a developed nation by 2047". It is our Kartavya Kaal," it added.
"The economy is the start and end of everything. You can't have successful education reform or any other reform if you don't have a strong economy." - David Cameron
