PM Modi’s recent speeches in the US made the intentions of the government very clear— it wants grow India’s economy to double the current size which $5 trillion by the year 2025, making it the fourth largest economy after the US, China and Japan. But, there seems a dissonance in what the government is planning and the situation at hand in the country.
The uncertain economic conditions triggered by fears of global recession has made it even more challenging for the Modi government. Nevertheless, it seems PM Modi’s recent speech in the US has highlighted the right vision for the country in terms of the direction in needs to take. So, one might wonder what the government can do to bring the promise of $5 trillion economy.
Modi’s Support For Startups Is A Big Move Towards The Target
Policy regulation is another area where the government needs to make sure innovation is not hampered as it is the main source of economic growth. Here, the government’s push to ease regulations for startups as well as remove angel tax (after years of pleas) is a move in the right direction. The government’s stance on startups is appreciative and reflects that the government has recognised startups play a critical role in driving innovation and economic growth for the future. “Our youth are the largest users of the app economy. From food to transport, from movies to hyperlocal delivery, startups are easing everything. Thus if you want to invest in startups in a huge market, come to India,” said PM Modi at Bloomberg Global Business Forum in New York recently.
Apart from startups, opening up foreign direct investment for particular sectors, reduction in corporate taxes, ensuring credit momentum to non-banking institutions, taking back the tax surcharge on foreign investors, single tax system, consolidation of public banks are all great steps to make the economy more efficient, say experts. PM Modi at Global Business Forum in New York also recently said “We have removed 50 policy laws hampering development, this is the beginning,” which is reassuring for innovation.
To achieve the target of making India Inc a $ 5 trillion economy will be no easy feat especially in an uncertain global economic scenario. The government therefore has to play an active role in making sure the nation garners enough investments which are then put to use for building an innovation-led infrastructure.
The massive investments in the infrastructure and business initiatives would naturally create enough jobs in future given there is no skill imbalance. PM Modi’s vision of making India an economic powerhouse will only come together when there are a multitude of right steps taken concurrently in this direction.
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Vishal Chawla is a senior tech journalist at Analytics India Magazine and writes about AI, data analytics, cybersecurity, cloud computing, and blockchain. Vishal also hosts AIM's video podcast called Simulated Reality- featuring tech leaders, AI experts, and innovative startups of India.