India to become the world’s second-largest economy by 2075

India to become the world’s second-largest economy by 2075, surpassing not only Japan and Germany, but the U.S. too, says Goldman Sachs. Currently, India is the world’s fifth-largest economy, behind Germany, Japan, China and the U.S.

Indian Economy Growth

India’s population is 14 billion now which is world’s largest having progressive GDP growth that boosts the labor work force participation. India’s progress lies in innovation and technology, higher capital investment and rising worker productivity

The dependency ratio of any country is measured by the number of dependencies against the total working age population. It is expected that the dependency ratio of India to be lowest among large economies in next 20 years. The low dependency ratio indicates that there are more working age adults who are able to support both youth and elders.

India’s top priority growth relies on the infrastructure services creation and setting manufacturing capacity to spur investments especially in roads and railways. This is the right time for private sector to scale up creating capacity in manufacturing services to generate more jobs and quality labor work force.

India’s trajectory economic progressive growth is seen in the field of Information technology, Business process management and software product innovation and the revenue is expected to reach $245 billion by the end of 2023.

Capital Investment will also play the significant role in India’s growth. With the decrease of dependency ratio, Income rising ways and deeper financial sector development savings rate is likely to increase that make the pool of capital available that drives further investment.

As according to survey report predictions India will become the third largest economy by 2030. India’s GDP growth for first quarter is expanding 6.1% year-on-year. India’s growth rate is @ 7.2% this year and it is expected to expand dramatically in upcoming years.

"It's an all round development budget which is active and not a reactive budget " Says Modi

Prime Minister describes the central government budget as an all round development and it covers all covid-related reforms to Atmanirbhar resolves. He congratulated Finance Ministry team and said it's an active budget and not a reactive budget. 

Union Budget-2021

Finance Minister Nirmala Sitharaman has presented her Third Union Budget 2021-22 in the Parliament under the National Democratic Alliance (NDA) government. This is the first paperless budget presented in the parliament and it was made available in a digital format and assumes greater significance as it comes in the amid of Covid-19 Pandemic.

In this budget there are significant changes in the Taxation Process. FM has announced the scrapping of Income tax for Senior Citizens. She has proposed new rules for removal of double taxation for NRIs. She has also mentioned the reduction time limit for Tax assessments.

Startups will get an extension on their tax holiday for one more year.The advance tax liability on dividend income shall arise after declaration of payment of dividend.India's Fiscal deficit is set to jump to 9.5%of GDP in 2020-21 as per revised estimates. This is sharply higher than 3.5% of GDP which was projected in Budget Estimates.

In healthcare FM has announced a total spend of Rs 2 Lakh Crore on healthcare with 35,000 crore on Covid-19 vaccine development activity FM has announced a push to Textile Industry by hiking a custom duty on Cotton and raw silk, A New Cess on Agriculture development  Rs 2.5 per litre on Petrol and Rs 4 per litre on Diesel.     

The Central Government is focusing on sea-weed farming facility in Tamilnadu and New vehicle scrapping policy which provides great boost to automobile sector. FM has also announced that more than 1 crore families will now benefit under Central Governments Ujjwala Scheme.  The Upcoming poll states will see significant spending on Roadway expansion.

 

Prime Minister Modi has announced Rs 20 Lakh Crore Economic Stimulus package to fight against Covid-19 Battle

Prime Minister Narendra Modi has addressed the nation Fifth time and five days before the Nationwide Lock down 3.0 is going to end. Modi Told the Lock down 4.0 will be in a new form. He also mentioned that Caronavirus will be a part of our lives for a longer period of time as said by experts and research scientists.We need to overcome this pandemic situation by wearing masks and Maintaining Social Distancing measures. The Government will announce the new rules before May 18th.

Prime Minister Narendra Modi

Narendra Modi has announced Rs 20 Lakh crore worth Stimulus package that helps to revive the economic crisis arised due to Caronavirus. This Package is equivalent to 10% of India's GDP. Finance Minister Nirmala Sitaraman will give the complete details regarding the economic package on 13th May 4 PM. This Package will play a bigger role in "Atmanirbhar Bharat Abhiyan" 

The reforms will strengthen Make in India and promotes global & local businesses that attracts investments. The new reforms includes Rational Tax System Policy, Simple and clear rules and regulations,laws Agriculture Supply Chain reforms,Efficient Human Resources, strong financial system. This Package will also focus on MSME's ( Micro Small and Medium Sized Enterprises ) , Cottage industries, Farmers and Labourers ,Middle class people and Industry. This package will also help poor people , migrant works Organized and unorganized sectors to empower them to provide their best of their efficiency and quality deliverables.

Narendra Modi mentioned  The economy with strong financial system, Quality Infrastructure, System Demography and Demand are considered as top five pillars of  India's self-reliance. He also stresses more on local manufacturing , Local Markets and supply chains related to farming etc that help them become global. India has converted this pandemic Covid-19 challenges into an opportunity. 

This package may have loan guarantees to Micro Small and Medium Sized Enterprises, Wages support for workers, Protection and support for Migrant Labourers, Various Tax incentives for local production units , Tax rebates for spur spending activities and providing support for Construction activities.