Things you might not know about Indian economy
In recent years, the Indian economy has taken big strides in terms of growth and exposure. But do you know there are various unique things that make it unique? Let’s get to know them.
Things you might not know about Indian economy - In recent years, the Indian economy has taken big strides in terms of growth and exposure. But do you know there are various unique things that make it unique? Let’s get to know them.
Boasting of its rich culture and diversity, India is a country that holds a special place among people who love to come here again and again. But on the other end, it is the Indian economy that emerged out as the biggest magnet to foreign businessmen who want to invest in this country.
India is known to have a diverse economy. Almost half of India's workers are based on agriculture, the moniker of a conventional economy. One-third of its workers are hired by the services sector, which attributes to about two-thirds of India's production. The productivity of this segment is made realizable by India's move toward a market economy. Since the 90s era, India has relaxed various industries. It's denationalized various state-owned enterprises and unlocked doors to foreign direct investment.
Below are some of the most important things that you must know if you’re looking to invest in India.
# Economic and population growth
India is the fastest-growing trillion-dollar economy in the globe and the fifth-largest in general, with a trifling GDP of $2.94 trillion. India has become the fifth-largest economy in 2019, overhauling the United Kingdom and France. The country is at 3rd rank when GDP in terms of purchasing power parity at $11.33 trillion. By 2050, India’s economy is all set to be the world’s second-largest, preceded only by China.
India is known to have a population of 1.34 billion people – 18% of the world’s population. It will have outdone China as the world’s most populous country by 2024. It has the world’s largest youth populace, but isn’t yet completely seizing this possible demographic dividend – more than 30% of India's youth are NEETs (not in employment, education or training), according to the OECD.
# India’s 29 states are now a common market
Chances for corruption have long been shaped by the puzzling jerry-rigged of taxes across India’s 29 states, which also cause interruptions as goods cross state borders. In recent times, the system witnessed a change: a new goods and services tax means the 29 states are now a common market.
The new system is anticipated to fuel efficiency, growth, and India’s tax take. Notwithstanding some technical issues with the new online tax collection system, preliminary signs appear hopeful.
# Demonetization had mixed results
In 2016, Prime Minister Modi unpredictably professed that India’s highest-denomination banknotes – accounting for 86% of cash – would no longer be considered lawful tender. Rather, they need to be deposited in banks. The objective was to all together chastise tax evaders, as those with a supply of 'black money' would face uncooperative inquiries. Unpredictably, however, almost all banknotes were deposited.
The disturbance caused by the policy may have reduced GDP growth in the short-term, but it could also prove to have long-term paybacks. It augmented the number of digital transactions being carried out within India’s economy, which are simpler to track and to tax. In recent years, over double as many Indians have submitted their IT tax returns than in the same period last year.
# India needs women empowerment
India has taken diffident growth towards concluding its gender gap over the last decade, emerging from 98th to 87th in the World Economic Forum’s Gender Gap Report, which totals a wide range of signs from health and education to economic and political contribution.
However, it ranks a deprived 135th out of 144 on women’s labor force sharing, just preceded by Yemen. India’s economy would have much to gain a lot from encouraging more women to join the workforce.
# IT industry is expected to grow faster
Down the line, the Indian IT industry is supposed to grow faster as part of the Industry 4.0 revolution.
The year 2019 sustained to carry forward the upcoming trends in the world of Information Technology with the surged deployment of Artificial Intelligence (AI), Internet of Things (IoT) and Machine Learning. According to research done by Gartner, globally IT spend is expected to total $3.7 trillion in 2019, a surge of 0.4 percent from 2018.
In India, IT spend will reach $94 billion in 2020, an upsurge of nearly 7 percent from the existing levels.