• UGI USER
  • Dec 19, 2023
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INDIA’S GROWTH TRAJECTORY: SEIZING THE MOMENT

Why in the News?

  • Recent central bank upgrades project India’s GDP growth for 2023-24 at an impressive 7%.
  • Contrasting global growth challenges, India’s outstanding performance raises curiosity about its driving forces.
Source:PIB

About Drivers of Growth :

  • Role of “Old India”: Transition of “old India” (85% of the economy) by leveraging digitalization in manufacturing and agri-tech is crucial for sustained growth; reforms needed for lasting impact.
  • New India’s Crucial Role:
  • “New India,” constituting about 15% of GDP, plays a pivotal role in accelerating growth.
  • Comprised of high-tech sectors like exports of mobile handsets, pharmaceuticals, and robust IT services.
  • Services exports, evolving beyond call centers, contribute significantly, making India a global hub for professional services.
  • Digital Public Infra. : India’s digital public infrastructure, embraced by tech startups, fosters rapid growth across fintech, e-commerce, ed-tech, and logistics.
  • Digitalization: Digitalization’s wide-ranging benefits attract foreign capital, nurture entrepreneurial culture, and propel sustained growth.