Fragile 5 to Top 5: India scripts economic turnaround story in 9 years
Hyderabad: As the United States pulls out all stops to make Prime Minister Narendra Modi's state visit a huge success, India basks in a new glory of being a key indispensable partner of the developed economies to ring-fence the world from a coalition of autocrats.
The tag of partner, analysts believe, was not bestowed upon on India by the Western nations, but it was earned by proving its economic mettle and potential.
As per the World Economic Outlook report published by the International Monetary Fund (IMF), India is the fastest growing major economy in the world.
As per IMF’s managing director Kristalina Georgieva, “even with global growth slowing down, India remains a bright spot in today’s world”.
Now, India is the fifth largest economy in the world — in a complete contrast to 10 years ago when the economy under the United Progressive Alliance government plunged to be one of the Fragile Five economies.
Officials give credit to the Narendra Modi government's sustained economic reforms for helping India shed the Fragile Five tag.
Under the BJP government, the Indian economy is worth $3.74 trillion — standing behind the economies of just the United States ($26.85 trillion), China ($19.37 trillion), Japan ($4.41 trillion) and Germany ($4.31 trillion).
Given the economic growth rate differential and the government's push for exports, the Indian economy is set overtake Germany to become the fourth largest economy in the world in 2027 and the third largest economy in 2029.
The government's reforms included increasing the capital expenditure to create world-class infrastructure, implementation of GST, boost to exports and manufacturing through schemes such as PLI, reforms resulting in ease of doing business, reforms in labour laws, development of renewable energy capacity, reforms in FDI policy and ease of living for the common man through various welfare schemes like Pradhan Mantri Jan Dhan Yojana, Ayushman Bharat Scheme, Pradhan Mantri Awaas Yojana, Jal Jeevan Mission, among others.
