Dr. Debasis Bhattacharya
Professor – Amity Business School
Amity University Haryana
During times of contemporary economic challenges prevailing worldwide, Indian economy stands as one major economy whose fundamentals are stronger as compared to many other countries across all geographies. One of the most important aspects of the Indian economy is its ability to bounce back quickly because of the diversity of talent, huge resource base and strong institutional framework that the country is attributed with. The temporary dip in GDP growth rate because of the global pandemic is a temporary phenomenon and, in all probability, the Indian economy is expected to grow at around 7.2% in the next fiscal year. That said, growth propelling economic measures in compliance with cooperative federalism is paramount wherein the central and state governments work in tandem in not only policy formulation but also effective governance mechanism so that the benefits of such economic measures are trickled down to common people in an inclusive manner. This is also the time when government, industry and communities must converge in a meaningful manner to facilitate the optimization of resources.
The initiative of “Self-Reliant India (Atmanirbhar Bharat)” recently announced by the Honourable Prime Minister Shri Narendra Modi is going to have a profound impact in rejuvenating and reviving the Indian economy in short and long term perspectives. The initiative is all set to usher in a new era of research & development, science & technological advancement, digitalization, innovation and entrepreneurship that will lead to employment generation at all levels.
In conjunction with the already existing initiatives such as “Make in India”, “Digital India” and similar programs call for self-reliance is expected to have a cascading effect in stimulating the economy towards domestic production, manufacturing, pharmaceuticals, and robust growth in the service sector. Simultaneously the recent government package of an amount of INR 20 lakh crore is also going to be very effective in stimulating the economy, especially the agriculture and MSME sectors, that account for major employment opportunities to the middle, lower-middle class and the less fortunate sections of the population. The recapitalization policy of the central government amounting to INR 1 lakh crore for public sector commercial banks, NABARD, SIDBI, and National Housing Bank is further aimed at accelerating economic activities in organized and unorganized sectors in order to revive the economy in a multidimensional manner.
As I read in an article, “Fashion could return to its basic beauty, an expression of individuality. And in the process, we can hope that our Earth will be able to heal some more.”
The proactive domestic policy measures announced recently to revive the economy are further going to be complemented by rapidly evolving geopolitical and geo-economic developments in the international arena. The favourable alliance formation by many countries to transfer their manufacturing and service hubs to India is going to enhance FDI inflow to India and stimulate economic activities. The reverse migration of workforce from urban to rural areas is expected to generate gainful employment in the vast rural hinterland of the country leading to balanced economic development. The government has made necessary amendments in labour laws to facilitate employment opportunities in home states and rural hinterland. All such economic measures adopted in multifarious dimensions are surely going to revive and propel the Indian economy in a robust manner in short and long terms.