How India’s economy underwent a drastic change in last decade
New Delhi, June 22 (IANS) India has undergone a dramatic transformation over the last 12 years from the ranks of a “Fragile Five” economy to a robust, self-contained, data-driven engine of global growth, fully equipped to face the complexities of the digital century with absolute sovereignty, according to an article.
“By shifting from short-term consumption splurges to an aggressive Rs 12.22 lakh crore public Capital Expenditure blueprint (a massive 4.4 per cent of GDP), the nation transformed from a passive tech consumer into a sovereign architect of its own future,” the article in The Organise observed.
As part of the transformation, it highlighted that in 2014, the public sector banks were reeling under stressed debt with Gross Non-Performing Asset (NPA) ratio at a terrifying peak of 11.18 per cent due to reckless lending to the corporate sector. As part of the rescue mission, the government injected a historic Rs 3.10 lakh crore into the vaults of public sector banks and empowered them with the Insolvency and Bankruptcy Code (IBC). The drastic recovery was reflected in NPAs being whittled down to a multi-decade low of 2.5 per cent. These banks are printing record annual net profits exceeding Rs 1.4 lakh crore and propelling economic growth.
Another major change has come about in the IT sector. For decades, India wrote the software for the world, but imported 100 per cent of the silicon hardware required to run it. To break this loop, the government deployed a Rs 1.97 lakh crore Production Linked Incentive (PLI) Scheme. This transformed the country into the world’s second-largest mobile manufacturer, sending annual mobile exports scaling past $28 billion.
Besides, India is setting up semiconductor manufacturing capacity to cut imports. At Dholera, Gujarat, Tata Electronics’ flagship $11 Billion mega-fab is rising from the ground, partnering with global chip veterans and deploying advanced ASML lithography equipment. Upon completion, this single plant will erase $10 billion to $12 billion from front-end chip imports annually, the article stated.
In the telecom space, state-run BSNL is rolling out a 5G network powered for the first time ever by a 100 per cent indigenous technology stack engineered by a local consortium of TCS, Tejas Networks, and C-DoT. This positions India as one of only four countries to own its proprietary radio network gear.
Besides, by executing a comprehensive Semiconductor Vision for 2035, India isn’t just looking to put chips in boxes; it is targeting a $120 billion to $150 billion local ecosystem, retaining an unprecedented 55 per cent to 70 per cent of the value addition entirely within its borders.
It also cites the example of high-speed Vande Bharat express trains as part of the new technology leap. Previously, India spent fortunes importing high-speed train blueprints from Europe or Japan. Designed and built entirely from scratch by engineers at the Integral Coach Factory (ICF) in Chennai, these sleek trains were delivered at half the imported cost.
Besides, homegrown space-tech startups like Skyroot Aerospace are breaking old state monopolies. After launching India’s first private rocket in 2022, Skyroot is preparing the maiden flight of its fully commercial orbital launch vehicle, Vikram-1, targeting a slice of the global $25 billion small-satellite launch pie, the article states.
It also underlines the country’s historic data centre boom, pushing India’s operational capacity to 1.6 GW. To keep them running without burning through fossil fuels, India deployed the Green Energy Open Access Rules. Backed by a fast-tracked, 15-day approval window, India’s non-fossil installed capacity has been scaled up to a phenomenal 283.46 GW — including a 53-fold explosive expansion in pure solar capacity to 150.26 GW.
–IANS
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