Ways to improve living standard

India is in a stable position, witnessing early signs of a sustainable economic revival despite geopolitical tensions and demand-supply mismatches in crude and other commodities driving inflation. After ‘Make in India’ and ‘Vocal for Local’ initiatives to make India atmanirbhar, the focus now is on creating a local supply chain to reduce dependence on overseas. For this, the government is giving unprecedented support to MSMEs.

Standard of Living

India is the fastest growing economy among the G20 nations. However, the challenge is to improve standard of living. India has ranked 149th in terms of the per capita GDP which stands last among G20 economies. Apart from the low per-capital income, India also has problem of unequal distribution of income. This makes the problem of poverty a critical one. Economy needs to have higher savings rate to sustain higher growth. Long-term sustainability of the economy will come from increase in household income. A country cannot get desired macro result without rectifying its micro parameters. In present scenario, Indian economy is affected by the geopolitical turmoil. Policies need to be formulated considering world perspective.

Positive projection

As China has been in middle income trap since 2014, India is getting the opportunity to be the fastest growing G20 economy. India is taking rapid growth strides and will commend increasing heights in world economic order. Liberalisation helped in India’s growth. India has stood third largest in terms of purchasing power parity (PPP) in the world and is set to go up the order. Based in IMF projection, India is set to become fifth largest economy in this year overtaking UK. It is expected that in 2027, India will overtake Germany to be the fourth largest economy and in 2030 India is likely to overtake Japan to become third largest economy. Digital financial inclusion is significant, low level of inflation is one of the key growth drivers. India must move from low-middle income category to at least middle –income category in next 10 years.

The Centre is looking at wealth creation by focusing on Ease of Doing Business, Digitisation and Startups Scheme, National Logistic Policy, One District One Product. India will focus on Digital initiative, UPI System and Supply Chain Resilience, besides others. Government is emphasizing on inclusive growth, re-skiling and up-skilling, quality and standards and sunrise sectors namely AI, Geo-Space, Green Energy, etc.