The Indian economy today is moving forward on the path of growth at the rate of about 7 percent per annum. By expanding the size of the economy, there is an increase in the income of the citizens of that country. Due to this, money also reaches the hands of the poor class. Due to this, the demand for various products increases and new employment opportunities are created and ultimately the number of poor class increases. By decreasing, the number of middle class in the country increases. According to a report of NITI Aayog, the number of poor class in the urban areas of India was 24.85 percent in the year 2015-16, which has decreased to 14.90 percent in the year 2020-21. A decline of 9.95 percent has been recorded. Similarly, in the year 2015-16, the number of poor class in rural areas of India was 32.59 percent, which has decreased to 19.28 percent in the year 2020-21. Therefore, the number of poor class has reduced in India. For this reason, global rating institutions are increasing India’s rating.
Standard and Poor Rating Institute has kept India’s growth rate at 6 percent for the year 2023-24 and 6.9 percent for the year 2024-25. Also, this same institute believes that the size of the Indian economy is going to be 7 lakh 30 thousand crore US dollars by the year 2030. In the year 2023, the American economy will be in first place with 26 trillion US dollars. At second place comes China whose economy size is 18 trillion US dollars. At third place is Japan whose economy size is 4 lakh 20 thousand crore US dollars. Germany is in fourth place, whose economy size is also about 4 trillion US dollars. Thus, with its increased growth rate of about 7 percent per annum, India is soon going to become the third largest economy in the world by surpassing Japan and Germany. Rating institute Fitch has also improved its earlier estimate of the growth rate of the Indian economy to 6.2 percent for the financial year 2023-24, earlier this growth rate was estimated to be 5.5 percent. Rating institute Moody’s has also predicted India’s growth rate to be 6.7 percent during the financial year 2023-24. India is developing rapidly, this is clearly visible from the crowd gathering in the markets to buy products during festivals.
According to the information provided in a program presented on Bharat24 channel, India’s Gross Domestic Product (i.e. total production in agriculture, industry and service sectors) has come to the level of Rs 282.83 lakh crore in the year 2022-23. America’s gross domestic product ranks first in the world, which is Rs 2121.19 lakh crore. That is why America is called the richest and most powerful country in the whole world. China’s GDP at second place is Rs 1497.31 lakh crore. Japan’s gross domestic product is Rs 407.60 lakh crore. Germany’s gross domestic product is Rs 341.05 lakh crore. From this point of view, India is the 5th richest country in the world. India’s gross domestic product in the year 2013-14 was Rs 113.55 lakh crore and in the year 2013-14, the Indian economy was ranked 10th in the world. In the year 2013-14, America’s gross domestic product was Rs 1459.88 lakh crore. China’s gross domestic product was Rs 871.77 crore in the year 2013-14. Japan’s gross domestic product was Rs 349.37 lakh crore in 2013-14. Germany’s gross domestic product was Rs 323.59 lakh crore. During this period, America’s gross domestic product has increased by 50 percent, China’s by 80 percent, Japan’s by 30 percent, Germany’s by 5 percent, while India’s gross domestic product has increased by 150 percent. If India continues to progress economically at this pace, then India will definitely become the third largest economy in the world before the year 2030.
A lot of work is also visible under the Make in India scheme and the export of goods manufactured in India is continuously increasing. India has exported Rs 36 lakh crore in the year 2022-23. Whereas in the year 2014, exports were worth Rs 19.05 lakh crore. It has almost doubled. In the year 2023-24, the Government of India has increased the capital expenditure to Rs 10 lakh crore. Due to this, more and more employment opportunities are being created. In the year 2014-15, there were 97,000 kilometers of national highways in India, which has increased to 145,155 kilometers after 9 years in the year 2023-24. During this period, about 50,000 kilometers of new national highways have been constructed. Now, in terms of quality, Indian highways are seen competing with American highways. Excellent highways are essential for a developed country. Good highways increase both markets and employment.
Today India is continuously increasing the use of domestically produced goods. The slogan of “Vocal for Local” is now becoming louder and Indian citizens are now reducing the use of products made in China and are using goods made in India. Indian Prime Minister Narendra Modi is also continuously appealing to Indian citizens to use goods produced in India only. Its effect is also visible. There has been a decline in the import of various products from China this festive season and according to an estimate, the import of products worth about Rs 1 lakh crore has reduced from China this year. There has been a 32 percent decline in the import of Chinese Diwali lights. On the other hand, there has been a 60 percent increase in the sales of lights made in India. The poor class is getting the most benefit from this. All of us Indian citizens should also take care that we should not bargain too much with the poor people who sell some items sitting on the side of the road and buy the items from them so that this class can also increase their income. Anyway, when we buy goods from goods, we reduce the price of goods.
When GDP increases, people’s income also increases. When people’s income increases, people buy goods in the market. This increases the demand for products in the market. The market prices of products are decided by the demand and supply of products. When the demand for any product increases comparatively faster and the supply of that product is not available in the market on time, then the prices of that product start increasing in the market. When your spending power increases, you are also ready to pay higher prices for goods. Not only is economic development gaining momentum in India but the currency situation is also under control. This is possible due to the measures being taken jointly by the Central Government and the Reserve Bank of India. India’s fiscal policies are not only preventing inflation but also promoting growth. Due to decline in market prices of food items, the rate of retail inflation has declined in the month of October 2023 and it has reached a four-month low of 4.87 percent. According to the information released by the Central Government, the retail inflation rate based on Consumer Price Index was at the lowest level of 5.02 percent in the last three months in the month of September 2023.
In India, most of the expenditure of the common man is on food and health services. A provision for expenditure of Rs 89,000 crore on health services has been made by the Central Government in the budget. There has been an increase of more than 4 lakhs in the number of doctors. There are more than 13 lakh allopathic doctors in India today. Additionally, 5.65 lakh Ayurvedic doctors are also available. Thus, there is one doctor available for every 834 citizens in India. Ayushman health cards have been provided to provide free treatment to poor citizens. Similarly, for farmers, Modi government has increased the minimum support price per quintal of wheat from Rs 775 and rice from Rs 730. In the year 2012-13, the average monthly income of Indian farmers was found to be Rs 6,426, which has increased to Rs 10,248 in the year 2018-19. It has been told in a report of UNDP that the number of middle class in India is continuously increasing. India’s contribution to the growing number of middle class globally is 24 percent. Many financial institutions of the world are of the opinion that India can become the third largest economy in the world by the year 2027. This also means that the per capita income in the country is likely to increase at a faster pace. Besides, India is also becoming self-reliant in every field today.
Retired Deputy General Manager
state Bank of India