There are global concerns about inflation and a possible recession in even the most advanced and stable of economies. However, this sentiment has not been shared by India, which has just recently won the title of “most populous country on the Earth” while being on track to becoming the fastest-growing economy. For around 20 years, India has been the second-fastest-growing large economy after China, and a series of revolutions could accelerate this growth in the coming years.
So, what is unlocking India’s economic potential? Here are three revolutions driving this growth.
Aadhaar government initiative
A report by the Washington Post noted that Aadhaar was a government initiative driving economic growth. This initiative gives every Indian access to a unique 12-digit identification number that can be verified using fingerprints or an iris scan.
Currently, 99.9% of all adult Indians own a digital ID that can be used for instant verification or transfer of government payments to recipients directly, which reduces corruption. Aadhaar is available to all Indians, and it is also a free-to-access initiative.
One of the features of setting this initiative aside is that it is owned and operated publicly. In Western countries, tech giants are private monopolies that can share data to generate a profit, which has often raised concerns. On Aadhaar, individuals can create businesses and even use it as a payment platform for sending money and taking loans. Aadhaar users do not have to pay the exorbitant fees usually charged by Western digital platforms.
High internet usage
India also boasts extensive internet reach, which could support the country’s future economic growth. Over 700 million people in India currently use the internet. In 2015, the country secured the 122nd position in the per capital mobile data consumption. However, this changed significantly in 2022, as India ranked first and it exceeded the mobile data consumption of China and the US combined.
The increased internet usage can be attributed to the Jio revolution inspired by Mukesh Ambani. Ambani is one of the most renowned business leaders in India, and he made $46 billion by offering cheap phones and data packages using his telecom service known as Jio.
Internet usage plays a significant role in economic growth. Therefore, with the high number of internet users in the country and a growing number of smart phone users, this country will achieve this growth through better access to news, education and the data needed to climb up the social ladder or start companies.
The third reason behind economic growth in India is the infrastructure revolution. The Indian government has increasingly spent its massive budget on roads, airports, train stations, and other projects.
Over the past few years, the government’s investment in capital expenditure has seen a significant increase. In fact, since the 2014 financial year, the government has boosted its capital spending by a staggering five times. This reflects the government’s commitment to upgrading the country’s infrastructure and enhancing its overall economic growth.
One of the key areas that has benefited from this increased capital expenditure is the construction of national highways. In a bid to improve connectivity across the country, the government has doubled the average construction of these highways. This has not only improved the ease of transportation but also spurred economic activity in various parts of the country.
Apart from national highways, the government has also focused on improving the country’s seaport capacity and the number of airports. The increased spending in these areas has led to the development of modern seaports that can handle larger volumes of cargo, and the construction of new airports that are equipped with state-of-the-art facilities. This has not only improved the efficiency of trade and commerce but also boosted the tourism industry, providing a significant economic stimulus.
These revolutions are set to transform the Indian economy. The advancements can bring in hundreds of millions of Indians that are still marginalized access the best economic, social and political benefits. India has many people still living below the poverty line, with around 45% of Indians living on less than $3.65 a day. Solving this challenge will be the key to boosting the country’s economy.
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