Independence Day 2023: A Glance at India's Robust Economic Growth

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India Independence 2023

As India completes its 77th year of independence, there's an economic narrative that deserves attention. Beyond the tricolor, the patriotic melodies, the struggles, and the sacrifices of the past, there is a nation that has continuously grown into an incredibly powerful economy. 

Let's take a closer look at India's impressive economic growth and see how our nation is making a mark globally.

India - Third Largest in Global GDP Contribution

India's economic journey is remarkable. World Economics Research indicates that India moved from being the 10th-largest economy in 2014 to the 3rd-largest today. In fact, the International Monetary Fund has predicted India will contribute 15% to global economic growth by 2023.

These impressive numbers did not occur by chance. They reflect the Indian government's meticulous planning, policy-making, and execution at multiple levels!

Moreover, reports by Morgan Stanley suggest

  • India's PMI is at its highest in 13 years, while manufacturing PMI nears an 11-year peak, outperforming many countries.
  • Car sales have surpassed pre-Covid levels by 131%.
  • Goods and services tax collections are up by 35%, and service exports have increased by 84% since October 2020.

UPI - The Digital Payment Revolution

India's financial changes are led by digitalisation, and UPI stands out as a prime example. In July, UPI transactions neared a whopping 10 billion, totalling over ₹15 lakh crore in value. That's over tenfold what credit cards managed in three decades! Thanks to its efficiency and focus on users, UPI isn't just a hit in India; it's making waves globally!

  • UPI processes 40% of global real-time payments and is popular not only in India but also in six other countries: Singapore, UAE, Oman, Nepal, Bhutan, France, and Sri Lanka. This showcases UPI's adaptability and seamless integration.
  • The National Payments Corp. of India (NPCI) has noted that NRIs from the US, UK, Australia, Canada, Hong Kong, Oman, Qatar, Saudi Arabia, UAE, and Singapore can use UPI both in India and overseas.

Exports - India's Growing Trade Footprint

Trade has been an anchor for India's economic story. India began its export journey with commodities like spices, metals, and textiles. Today, our country's export portfolio has diversified immensely- from petroleum products, mineral fuels, and medicinal drugs to precious stones and equipment such as nuclear reactors, boilers, and machinery.

The services sector is equally impressive! 

  • India's IT & BPO segments contribute to over 60% of the country's service exports. 
  • The staggering $700 billion in goods & services exported in 2021 alone reinforces India's position as a significant player in the global trade landscape.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.