Public capex, banking reforms transformed India into global growth engine: Report

New Delhi, June 27 (IANS) India experienced a tremendous transformation from the ‘Fragile Five’ label pinned on it by global analysts in 2013 to a more self‑reliant, global growth engine built on banking reforms, silicon hardware push and domestic technology development, a report has said.

The report from Vietnam Times said the public capital expenditure blueprint of Rs 12.22 lakh crore transformed the nation from ‘a passive tech consumer into a sovereign architect of its own future’.

The Gross NPA ratio sits at a multi-decade low of 2.5 per cent, with net NPAs down to a negligible 0.6 per cent.

Reckless corporate lending pursued for decades had left public banks holding huge amounts of stressed credit in 2016, the report said.

It added that the Gross Non-Performing Asset (NPA) ratio peaked at a terrifying 11.18 per cent by 2018.

In addition, the government injected Rs 3.10 lakh crore of taxpayer capital straight into public sector banks between 2015 and 2021.

Along with this, the Insolvency and Bankruptcy Code (IBC) helped banks to aggressively scrub their ledgers.

The report also lauded production‑linked incentives and digital‑sovereignty measures that strengthened India’s macroeconomic resilience and technological capabilities.

The government’s Rs 1.97 lakh crore Production Linked Incentive (PLI) scheme transformed India into the world’s second-largest mobile shipper with exports scaling past $28 billion, it said.

“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 report said.

India had spent fortunes importing high-speed train blueprints from Europe or Japan, but the country is now producing Vande Bharat trains at half the imported cost.

“Featuring 75 per cent to 80 per cent indigenous components, they rocket from 0 to 100 km/h in a mere 52 seconds—matching traditional Japanese bullet trains in their wake,” it said.

“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 report noted.

—IANS

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