India As The World’s Fastest Growing Major Economy
Indian economy posted gains in the first quarter of the year, despite the expected downfall of the purchasing power of the country.
The business activities at the manufacturing and services firms declined in April as the domestic and foreign demand slumped. Similarly, the exports dropped to near to the ground global demand, marking its 17th straight month in April.
In the statement released by the Reserve Bank of India Governor Raghuram Rajan, the sluggish Chinese economy has been affecting certain countries like India. He also sends signals of little possibility of cutting interest rates to give a lift to the economy amid the strong indication of a rate hike by the Federal Reserve.
Based on the forecast of the economists, the gross domestic product from January to March accelerated for 7.5 percent headed by the slight improvement of the agricultural and the services sectors. Others had predicted 6.9 to 7.8 advance of India’s economy for the first period of 2016.
Meanwhile, Prime Minister Narendra Modi expressed in his recent interview that during his second year in the office, India has dealt with maximum reform and is ready for more in the future. The prime minister laid its plans in preparing India as the world’s fastest growing major economy.
For this year, the Goods and Services Tax or GST is expected to be implemented. GST targets the dissolution of all the patchwork of indirect taxes in India and to improve tax compliances. Since the peak of international trade services, this umbrella tax has turned into one of the standards preferred worldwide.
The development of the entrepreneurship across the region of India is one of the plans of the prime minister.To boost this sector, he wants every individual to have the chance or the opportunity to become a job creator. Instead of having public and private sectors he wants to promote personal sectors through entrepreneurship.Part of this program is utilizing the strength of the youth as they aim to provide job opportunities for them.
Prime Minister Modi sees further balance and sustainable growth for the country in changing the structure of the economy. He will mainly focus more on manufacturing, services and agriculture. He promotes competitive cooperative federalism which may result into a healthy completion among the state governments and obviously will drive growth for the economy.
Further, the prime minister reiterated prudent, macro-economic administration, a cut on fiscal and current deficit, to make it easier to do business and carrying out predictability in taxation. He also seeks to provide resources, opportunity and hand-holding for the poor.
In terms of fast and economic growth, the prime minister indicated that India needs 30 years to see the full effect of the reforms. Additionally, he used India’s sanskriti to get away from the various environmental issues faced by the developing countries.
Prior to his visit to Washington, Mr. Modi confirmed the end of the that effort to modify the law at the federal level and the changes are already in the hands of the individual states. Therefore, given all the plans of the prime minister and the current economic status, India could be the next world’s fastest growing major economy soon.