75 YEARS OF INDEPENDENT INDIA’S ECONOMY

Since 1947 India’s economy has been through many ups and downs on the social and economic fronts and on this occasion of its silver jubilee independence celebration we must take a moment to acknowledge the innovations and businesses that helped shape this journey.

The story so far

This story of a great nation built on the vales of diversity and unity cannot be complete without a mention of the role played by many enduring businesses. Brands have managed to embed themselves with the social and industrial journey of the country. The golden era of the Indian economy began in 1991 with a series of policies supporting privatisation, liberalisation and globalisation due to the escalating economic crisis following the currency devaluation and doubling of external debt. And since then Indian has become the hub of innovation across all industries. Frugal Indian innovations have made businesses, small and big to earn a name for themselves in the global arena.

At 75, the country has the fastest growing economy spearheaded by sectors like fintech and telecommunication. It boasts the world’s second largest education system and is among the top five countries in the area of space exploration. Fast penetration of digital services, digital payments and smartphones, coupled with technological capabilities and the availability of a large pool of talent have been imperative for the growth of India’s economy and a major source of FDI.

The IT wave in India, especially, brought the country’s technology talent to limelight. With initiatives like Digital India, the speed of digital transformations in the country has been unprecedented. The country is expected to create new opportunities and increase productivity by gaining maximum value from AI and data. Prime Minister, Narendra Modi emphasizes the need for modern IT infrastructure and refer to start-ups as the backbone of the New India. The consistent innovation from the Tech companies and the start-ups have made the country the hotspot for emerging technologies. The concept of freedom has evolved over time and its meaning can be subjective. For the Indian start-ups it meant unleashing their chains, and created a global mark. MeitY (Ministry of Electronics and Information Technology) has been using initiatives like the Start-up India as accelerators for product development and innovation. Looking back, India’s technological capabilities have surpassed all expectations and have placed the country on the global radar.

The road ahead- the next 25 years

While we bask at the splendour of India’s achievements so far, it’s also the time to reflect on the future. One might ask which sectors will be the greatest contributors to the country’s GDP in the next 25 years and here is a list of five crucial sectors that will spearhead India’s growth in the near future.

Fintech

Indian fintech sector is set for exponential growth with rising data access being one of the key catalysts for the change. The government estimates $150 billion market valuation by 2025, with the Indian middle class and urban population expanding. Seamless digital transactions have become the order of the day and have helped rewrite the country’s new story of development. With digital modes of payments such as UPI reaching even street vendors, India is fast approaching economic equity. It is now creating fintech unicorns, like OneCard, faster than ever. The coming years will see an exponential rise in credit penetration and digital payments and local and international e-commerce players, merchant platforms like Simpl and Zest and traditional finance firms like Bajaj Markets will lead this dramatic explosion.

AI and data driven technologies

Emerging technologies have become the turning point of the world economy. AI is revolutionising all the sectors with its wide range of applications. Increased social media usage, and cloud adoption align with 4.0 technologies such as IoT and 5G have made data the new fuel for the digital journey. There is no doubt that the next big enabler to GDP growth in the country is Web 3.0. Metaverse, NFTs and other crypto assets have become buzzwords and have seamlessly fused into our lives. AR and VR technologies have transformed every industry possible from e-commerce to education and entertainment.

Automobile

The ‘Make in India’ initiative rests on the idea to make Indian a powerhouse. It is estimated that India’s workforce will welcome 300 million new employees from 2010 to 2040. This will reduce the developed markets’ dependence on China and its supply chain. This is particularly true for the automobile industry which is gearing towards a green future. The shift to EV is inevitable with soaring fuel prices and rising demand for sustainability. Many positive trends await the Indian auto market which presents many opportunities for international corporates and entrepreneurs seeking a trusted destination for auto manufacturing. Companies from the US, Framce and Germany like Daimler have begun outsourcing their components, materials and vehicles from India.

Space

India has achieved many milestones since 1960s when the Indian Space Programme was started. Such extraordinary Indian space odysseys have had profound benefits in addressing crucial societal problems. ISRO is currently working on many satellite missions like Chandrayaan 3, Aditya L 1, NISAR and Venus Orbiter Mission among others. These upcoming missions will improve the nation’s technological capabilities in areas such as communication and meteorology. The government has launched new space policies that will increase the private sector investment and participation in this sector, including space tourism activities. IIT Madras incubated space-tech start-up Agnikul recently announced the opening of Rocket Factory 1, the country’s first rocket facility for 3D rocket engine printing.Similarly, Indian Meteorological Department has been working on the possibilities of using drones to get atmospheric data.

Healthcare

The future of healthcare in India looks bright with a series of AI powered initiatives for diagnostic accuracy and patient care. India is seen as one of the leading destinations for quality diagnostic services. Today, the concept of health has transcended to collective well being and mindfulness. Healthcare providers are adapting to this change by embracing emerging technologies and creating apps to provide resources for mental and physical well being. Schemes like AYUSH, introduced by the central government shows that India is focus for the next 25 years is not just physical fitness but also emotional fitness.

Education

The COVID-19 pandemic has transformed the education system in India with traditional classroom teaching being forced to evolve rapidly to tech based teaching and learning. Gamification and performance tracking have all become intrinsic part of the learning ecosystem which enables learners to equip the skills faster while immersing them in the learning process. The potential of VR, AR and Extended Reality (XR) have made advanced virtualisation possible allowing learnings to practically understand concepts. Post the pandemic edtech unicorns like Byju's, Unacademy and Vedantu are adopting to an omni-channel strategy that will let learners appreciate the benefits of online tools in an offline learning environment.

In a world toppled by Covid-19 and struggling to survive an economic crisis, India has managed to stick to its path towards self-reliance. A crisis led to the economic reforms of 1991 and if history has thought us something, there is no doubt that the ongoing economic crisis can be just the right trigger needed to fuel the transformation of India into a superpower.