The Resilient Indian Economy
The inherent resilience power of the Indian economy has come to the fore with the amazing turnaround made by the country in the financial sector. The economy was in shambles only a couple of months ago. It was virtually ravaged by Covid-19 pandemic and the subsequent lockdown. Growth rate became negative for two consecutive quarters leading the Indian economy into recession. Many renowned economists ruled out the chances of Indian economy bouncing back to its normal health in the near future. But Indian economy has proved the experts wrong and is now showing every sign of regaining its lost shine within the on-going fiscal. If Indian economy can achieve this feat, it will make many economists revisit their economic theories.
Notwithstanding the observations of some pundits that the so called come back of the Indian economy was made possible because of the festive season, United Nations (UN) in a recent report has observed in no uncertain terms that the country’s economy could prove to be the most resilient in south and south-west Asia in long term. In support of the claim, UN report mentioned the fact that while Foreign Direct Investment (FDI) in the region has decreased by two per cent from $ 67 billion in 2018 to $ 66 billion in 2019, FDI inflow in India has been increased by no less than 20 per cent. The highest ever GST collection in the month of December stands as a testimony to the optimism expressed by the UN in its report.
What has made the Indian economy so resilient against all odds? One of the reasons behind the strong resistance power of Indian economy is the existence of a huge unorganised sector. Out of 10 labourers in India, nine belong to the unorganised sector. Their contribution to the economy always goes unnoticed. The existence of such an unorganised sector helped India to negate the effects of worldwide recession during 2008 and now as restrictions are being lifted phase wise, Indian economy has once again started showing signs of revival.
There are still miles to go before Indian economy gets its coveted place among the world’s biggest economies again. Indian economy is still dependent on agriculture, as more than half of Indian workforce is engaged in agriculture. The country has made much progress in this sector in terms of productivity. But the income of the farmers has not been increased accordingly. So to make the economy stand on a high pedestal, efforts should be made to turn agriculture into a lucrative profession. Similarly, we have to put stress on the manufacturing sector. Manufacturing empowers us to meet demands other than food. In this regard, the Micro Small & Medium Scale Industries (MSMEs) can play an important role. By strengthening the MSME sector India can create around 60 lakh jobs by June this year if the ambitious Atmanirbhar Bharat RozgarYogana is properly implemented. With the emphasis on primary and secondary sectors, Indian economy will not take long to complete yet another success story.