By Sandeep Achary |
Sandeep Achary , a graduate of the Indian Institute of Technology and the Indian Statistical Institute , is currently pursuing a PhD as a fellow student at Pompeu Fabra University in Spain . |
According to the IMF , the Indian economy is projected to grow by 6.8 % in FY 2024-25 , while China and the USA will grow by 4.6 % and 2.7 %, respectively . If India continues at that pace , it could surpass the stagnant economies of Japan and Germany by 2027 , becoming the world ' s third-largest economy in terms of GDP . The fiscal deficit , which was at alarming levels in 2021 , has been reduced to 5.1 % of GDP in FY 2024-25 . As for inflation , based on the consumer price index for March 2024 , it reaches 4.85 % annually , which is well within the mandate .
Meanwhile the country — one of the poorest in the world — is struggling with massive unemployment , and faces the threat of a severe health crisis . Still heavily dependent on carbon-intensive sectors , India lags severely in the UN ’ s Sustainable Development 2024 , ranking 109 out of 166 countries .
Prime Minister Narendra Modi has set a goal of transforming India
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into a developed nation by 2047 , in time for the centenary of its independence . However , even the current rapid economic growth might not suffice to reach this goal .
IMPORTANT REFORMS
The past ten years , meanwhile , have seen some important economic reforms come through . One significant achievement , in 2017 , was the implementation of the Goods and Services Tax ( GST ), which has unified India as a single market by replacing 17 different taxes levied by various local government bodies .
In 2020 , Modi ’ s government played a crucial role in integrating identity , transfers , and payments into a single digital stack , pushing them to a huge scale . The move , unprecedented for a country as large as India , has inspired countries like France , the UAE , and Singapore .
Efforts are being made to revamp the country ’ s transport infrastructure , a part of which is collapsing . The introduction of semi-fast trains and rapid expansion of the urban transit net-
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PHOTO : FRABK HOLLEMAN / UNSPLASH |