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Will India be able to fulfill its dream of becoming one of the world’s top three economies? While some economists have rubbished the dream by terming it absurd, others are of the opinion that it is achievable as the factors responsible for steady economic progress are strongly in favour of the country. For instance, for the economy to prosper to the next level, a country requires healthy economic growth for a consecutive number of years. India is on the verge of fulfilling the condition as its economy has grown by over six per cent on average for nearly two decades. It must be noted that during the first four decades after India’s independence, the country’s average growth rate was merely four per cent per year. The economy started blossoming since the introduction of the new economic policy by the Narasimha Rao government in 1991. Prior to that, the Indian economy was a closed one as the market was completely regulated by the government. The new economic policy changed the scenario by opening the market to foreign investors and limiting the state’s role. As a result, India has now become one of the fastest growing economies of the world, notwithstanding worldwide slump caused by the pandemic and as well as ongoing Russia-Ukraine war.
The fact that India has managed to sustain a high growth rate despite a number of adversities, showcases the strength of the country’s economy. When the economy was first opened to foreign investors it was predicted that India’s economic health would completely depend on the condition of the international market. But India’s turnaround even after suffering nearly 25% contraction of the economy has proved critics wrong. While many countries are still struggling to come to terms after pandemic-induced setbacks, India is strongly back on the growth path by reaping demographic dividends and adopting sound economic policies. There is no denying that India’s real strength lies in its huge population. Furthermore, India’s working population is much higher than other countries and it is still growing. The working population has helped the country to keep the wheels of development moving even in one of the toughest times. The government also spent much in the social sector during the troubled time. India’s demography has also made it one of the biggest consumer markets in the world. So as the situation normalised, it began providing solidity to the economy which normalised demand levels in a very short span of time. As a result, after absorbing the initial shock, there was no looking back for the Indian economy and it is in the process of scripting a new growth story. This is why, India’s economic progress has become a talking point and it has been predicted that the country may soon achieve double digit growth rate which will help it to overtake many economies. Clearly, the Indian economy is poised for a bright future.