New look of India: a decade of transformation

Modern India is the nation of contrasts and harmony, where innovations and traditions co-exist, enriching each other. Over the last 10 years, it has undergone substantial transformations across various aspects of its life, showcasing impressive growth and development. During this time, the country has emerged as a global economic powerhouse with a rapidly growing market. Political processes have also witnessed changes, influencing the internal and external policies of the nation. In this article, we will explore the key changes that have taken place in India over the last decade.

India’s GDP growth story is the result of a complex interplay of factors, involving both domestic and external influences. Some of these include:

1. India is now the world’s fifth largest economy, behind Germany, Japan, China and the United States, but is projected to overtake the latter in the coming years.

Growth drivers:

• India has become more innovative and technologically advanced than most people realize. The primary driver for this has been its IT industry. 
• India is the world's largest producer of generic drugs. The country has a strong research base and robust manufacturing capabilities, enabling it to export affordable medicines worldwide. 
• India has emerged as the world’s third largest producer of solar energy. 
• India ranks second in farm output. Government initiatives have played a key role in driving growth in the agriculture sector in recent years. 
• India continues to enjoy a significant demographic dividend, with an average age of 28 years compared to China’s 39.

India’s export basket is impressively diverse, ranging from black gold – petroleum products – to sparkling diamonds, pharmaceuticals and jewellery, mobile phones and more.

2. The demographic situation, major budget expenditures, and high consumer demand make India a "favorable destination for investment." The "Make in India" initiative, launched in September 2014, has played a crucial role in stimulating investments, promoting innovation, developing skills, and creating advanced manufacturing infrastructure. This program focuses on localizing production within the country, ranging from mobile phones and toys to fighter jets. The goal of this program is to create jobs and reduce the outflow of foreign currency. The country's Prime Minister, Narendra Modi, stated that thanks to this program, "India is becoming a center of manufacturing for the world."

Interesting fact: Western countries, the Middle East, and India will form a major economic corridor for the supply of goods and energy resources, as the project will become a competitor to a similar Chinese initiative.

3. In 2002, India passed the 86th Amendment to the Constitution, making the right to education fundamental. The country has worked for decades to make education accessible. As a result, today, primary education in India is almost universal, while there has been a significant increase in the number of new students in the secondary and higher secondary education sectors. The importance of education is widely recognized among Indians, as education is seen as the most effective social elevator, and even people with limited resources strive to provide their children with the best education. The aspirations of Indian youth and their thirst for learning are powerful drivers for the entire country and one of the key factors in India's economic progress.

4. The standard of living in the country is gradually rising, reflected in the growth of wages. By the end of 2023, wages in India had almost doubled, indicating positive developments in the economy and social sphere.

• Despite the growing average salary in India, many Indians still live below the poverty line.
• India has a very high level of unemployment, especially among young people.

5. Currently, there are around 850,000 dollar millionaires in India. The main factor driving the growth of millionaires is the stability of the government. At first glance, the connection between these phenomena is not obvious. However, from the perspective of investors, this factor significantly increases the financial attractiveness of the region for both domestic and foreign capital. When considering not just the growth dynamics, but the total number of individuals with assets over $1 million, India is surpassed in the Asian region only by China (second place) and Japan (first place). The reason for this growth in India is quite explainable, as most of the world's manufacturing is located within the country. This factor stimulates the Indian economy by creating new jobs for the population, increasing the amount of taxes in the treasury, and providing opportunities for development for local companies that are suppliers of goods and services to such manufacturing.

The sectors that have brought Indians multimillion-dollar fortunes include energy, pharmaceuticals, and the real estate market.

Interestingly, the Indian metropolis of Mumbai (in the central state of Maharashtra) has become the leader among Asian cities in terms of the number of billionaires residing there. The richest Mumbai resident is Mukesh Ambani, a businessman who owns the Reliance Industries conglomerate, operating in the energy, petrochemicals, textiles, natural resources, retail, and telecommunications sectors across India. Also on the "golden" list are businessman Gautam Adani, the head of HCL IT consulting company Shiv Nadar, the owner of the Serum Institute of India, producing vaccines, Cyrus Poonawalla, and the managing director of Sun Pharmaceuticals, Dilip Shanghvi.

6. Wealth and poverty in India coexist. The number of people living in extreme poverty has significantly decreased over the past decade, as the government has implemented several programs aimed at combating poverty.

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides guaranteed employment in agricultural work for people in rural areas. 
• The National Food Security Act provides subsidized food assistance through public distribution shops. 
• The Pradhan Mantri Ujjwala Yojana program aims to provide poor families access to clean natural gas for cooking instead of traditional fuels like wood or coal. 
• The Jan Dhan Yojana program aims to increase access of the poor population to banking services and financial inclusion. 

Despite the reforms in India aimed at improving the lives of the most vulnerable population groups and alleviating poverty, this issue continues to be relevant and requires significant efforts.

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India is a country with huge potential and diverse challenges. On one hand, India has a rapidly growing economy, high levels of technological innovation, cultural heritage and a huge human resource. On the other hand, India faces significant challenges such as inequality, poverty, social issues, despite improvements in the last 10 years. With the right development strategies, management of challenges, and investments in humanitarian and social sectors, India can reach new heights as a country and ensure prosperity for its people.

To better understand the specifics of each country and achieve real results in Asian countries, it is important to have a team there that systematically and methodically solves your business tasks on a daily basis. The RAUIE provides opportunities for organizing representation of your company in Asian countries. With minimal costs, you can open a representative office of your company based on the existing commercial structures of the RAUIE in China, India, Vietnam, the Philippines, Indonesia, and Turkey.

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