Indian Economy 2015- Reforms And Resurgence
The Indian economy has witnessed tremendous growth during recent years with GDP of $2.3 trillion. The Indian economy has witnessed rapid growth due to the new government reforms and policies. The first quarter of the current fiscal year showed great prospects and the World Bank considers India as the fastest developing economy at a projected rate of 7.5% in 2015. Considering the present trend the government is expecting a growth of 8.1 to 8.5 per cent by the end of the financial year. Now India is worlds seventh largest and Asia’s third largest economy.
The inflation rate has considerably decreased from 10% at the end of 2013 to 5.1% in the month of January. The supply of economic reforms and adoption of inflation targeting regime has assisted the disinflation process. The more rapid decline in inflation rate is due to lower commodity costs particularly oil and fuel. The RBI has responded effectively to the higher inflation environment by decreasing the interest rates.
The current reforms have maintained a proper tab on the growing fiscal deficit and volatile inflation. Higher investments are being made in infrastructure of the economy and increase in FDI cap is also noticed. The “Make In India” campaign is also growing, all the factors are being considered to attract foreign investors and leading forces to strengthen the economy.
Restructuring the Economy:
The NDA government is implementing some key decisions to restructure the economy. Better foreign relations are also being made with world leaders like the US, UAE, European Union and China. This has made an effective impact on FDI and there has been a 39% surge in the last financial year.
Relief given by the Government:
To increase the productivity and profits of different industries the government has given relief through decreasing the direct corporate tax rates. Government is acknowledging the face that higher tax rates cannot be charged as it may affect the economy adversely.
The government is modifying the labour laws for diminishing inequality and poverty. Effective steps are being taken by the government that will benefit the economy in the long run. The impact of these policies may increase once the government starts thinking about sustainable growth. Investing in human workforce has been the top priority of the policy makers as it is the most valuable asset of the country. The resurgence of Indian economy is in process and it is expected to transform into a super power within the year 2025.