India’s Economic Surge
Summary
*Syllabus: Economics* *Source: DH* **Context: **India’s economy has undergone a transformative journey over the past decade, marked by robust policy measures, increasing global integration, and substantial economic growth. **Data Insights on India’s Economic Dominance: ** • **GDP Growth:** **Nominal GDP:** Increased from $2.04 trillion (2014) to $3.57 trillion (2023). *(Source: World Bank)* **Per Capita Income:** Grew from $1,554 to $2,481 during the same period. **Projected Growth:** Expect
Exam Brief
GS-3India's economy shows strong growth, with nominal GDP rising from $2.04 trillion (2014) to $3.57 trillion (2023). UPSC examines economic growth and development.
Key Facts
- Nominal GDP increased from $2.04 trillion (2014) to $3.57 trillion (2023).
- Per capita income grew from $1,554 to $2,481 (2014-2023).
- FDI inflows (2014–24) totaled $709.84 billion.
- Ease of Doing Business ranking improved from 142 (2014) to 63 (2019).
- BSE Sensex surged from 27,507 (2015) to 78,507 points (2025).
Prelims — What UPSC Might Ask
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Source Article Content
Syllabus: Economics
Source: DH
**Context: **India’s economy has undergone a transformative journey over the past decade, marked by robust policy measures, increasing global integration, and substantial economic growth.
**Data Insights on India’s Economic Dominance: **
• GDP Growth: Nominal GDP: Increased from $2.04 trillion (2014) to $3.57 trillion (2023). (Source: World Bank) Per Capita Income: Grew from $1,554 to $2,481 during the same period. Projected Growth: Expected to reach $5 trillion by 2027 and $30 trillion by 2047. • Nominal GDP: Increased from $2.04 trillion (2014) to $3.57 trillion (2023). (Source: World Bank) • Per Capita Income: Grew from $1,554 to $2,481 during the same period. • Projected Growth: Expected to reach $5 trillion by 2027 and $30 trillion by 2047. • FDI Inflows: Total FDI inflows (2014–24): $709.84 billion, a 69% increase over the previous decade. (Source: Ministry of Commerce & Industry) • Total FDI inflows (2014–24): $709.84 billion, a 69% increase over the previous decade. (Source: Ministry of Commerce & Industry) • Global Rankings: Ease of Doing Business: Improved from 142 (2014) to 63 (2019). (Source: World Bank) Global Competitiveness Index: Rose from 71st (2015) to 40th currently. (Source: WEF) • Ease of Doing Business: Improved from 142 (2014) to 63 (2019). (Source: World Bank) • Global Competitiveness Index: Rose from 71st (2015) to 40th currently. (Source: WEF) • Capital Market Growth: BSE Sensex surged from 27,507 points (2015) to 78,507 points (2025), reflecting a 185% growth. Market capitalization increased to $5 trillion (2024). • BSE Sensex surged from 27,507 points (2015) to 78,507 points (2025), reflecting a 185% growth. • Market capitalization increased to $5 trillion (2024). Government Initiatives Driving Economic Growth:
• Make in India: Boosted domestic manufacturing, making India the second-largest mobile phone producer globally, reducing import dependency. • Startup India: Fostered over 100 unicorns and 1.5 lakh startups, valuing the ecosystem at $349.67 billion, promoting entrepreneurship. • PLI Scheme: Improved sectoral competitiveness by incentivizing production, attracting significant foreign investments. • Gati Shakti Master Plan: Enhanced infrastructure connectivity, expediting industrial and economic growth across regions. • Digital India: Promoted digital payments and financial inclusion, bringing more people into the formal economy. Positives of India’s Economic Growth:
• Job Creation: Increased employment opportunities through manufacturing and service sector expansions. • Innovation Hub: Improved rank on the Global Innovation Index from 76th (2014) to 39th (2024), fostering R&D. • Financial Stability: Reduced Gross NPAs to 2.6% in 2024, indicating stronger banking sector health. • Global Presence: Ranked as the third-largest economy in PPP terms, enhancing India’s global economic influence. Limitations of India’s Economic Growth:
• Inequitable Distribution: Economic growth benefits often fail to reach marginalized and lower-income groups. • High Inflation: Persistent food inflation impacts affordability and erodes purchasing power. • Unemployment: Rising joblessness, with insufficient creation of high-quality employment opportunities. • Governance Issues: Weak regulatory frameworks and favoritism allegations hinder equitable economic progress. Way Ahead:
• Inclusive Growth: Develop policies to address inequality and ensure fair distribution of economic benefits. • Green Economy: Invest in renewable energy and sustainable practices to support long-term growth. • *Focus on MSMEs:* Strengthen micro, small, and medium enterprises to create localized employment. • Skilling Initiatives: Train youth for emerging global opportunities and address skill mismatches in the workforce. Conclusion:
India’s economic trajectory highlights significant progress driven by robust policies and global integration. However, addressing limitations such as inequality and unemployment is essential to sustain inclusive growth and achieve the vision of a $30 trillion economy by 2047.
Insta Links:
• Economic-growth-and-inequality • “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy capable of increasing the industrial growth rate? (UPSC-2017) • Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis the industry in the country? Can India become a developed country without a strong industrial base? (UPSC-2014)