India is back on the fast track

The future of India belongs to the youth who are set to carry on the torch of patriotism and pride with fervour and gusto

India today is a far cry from two decades ago. As the world recognises Modi's success, one should not forget the steps taken in the journey to get there. During the last decade of the 20^th century, with former Prime Minister Manmohan Singh at the helm of economic and financial policy, combined with the drive and will of our nation, has resulted in a country evolving to set itself to be a force to reckon with. Though we have come a long way, there is much progress still to be made. With Modi leading us into this new era, we are poised to seize the underlying potential that rests beneath the nation.
The promises made by Modi in his campaign range wide and are strongly supported, but the future belongs to the youth who will carry on the torch of patriotism and pride with fervour and gusto. From a successful unmanned mission to Mars in 2014 to setting foot on the planet by 2020, no goal is too lofty or far-fetched. Each goal is yet another finish line that we must seek as a nation to achieve powered by measured actions of innovative, pragmatic individuals. From the well-known dabbawalas of Mumbai, who have been the subject of a Harvard case study, to the high-flying executives in their private jets, each person has made their own unique mark in the bigger picture of progress.
There is no doubt that India is truly filled with possibilities and endless opportunities. The evolution is marked by the growing desire among Indian consumers for a higher quality of education, the ability to travel abroad and the opportunity to flex their entrepreneurial muscle. Individual income is doubling faster, powered by faster GDP growth.
GDP per capita has nearly doubled within the last decade from $649.7 in 2004 to $1,630.8 in 2014 (World Bank). Currently, the nominal GDP of India stands at approximately $2,055 billion with a current standing of nine out of the top 10 economies. However, India is projected to grow to $63.84 trillion by the year 2050 and become the third largest economy in the world. The projected gap between India and the next five countries is so significant, that even when taken together; their nominal GDP would be less than India. There is a hunger in the Indian people that will not be satiated and it is this drive that is pushing the country towards greatness.
From an agricultural-based economy, we have developed into a powerhouse for services bolstered by flourishing intellectual capital centred on technology as evidenced by the presence of prominent players such as Infosys, Tata Consulting, Wipro, etc. Services rule the roost with over seven out of every 10 rupees being generated in the services sector. We are well known the world over for our contribution to a diverse range of sectors from IT and engineering to medicine.
Interestingly, savings as a percentage of income has been on the rise since 1979, which has contributed significantly to the economic growth. Primarily, this is driven by the conservative nature of Indian culture. While land and gold are some of the more favoured investment vehicles, fixed deposits in banks offer excellent returns, which are hard to come by anywhere else whilst safeguarding the financial security of the investor.
However, the more adventurous investors should not be discounted. The growth is also attributed to the rising confidence of the domestic investor as well as foreign institutional investors who see the potential in the emerging economy. Titans such as Rakesh Jhunjhunwala, deemed India's Warren Buffett, and others have pushed India's BSE and Nifty Indices to new highs in 2014.
In this decade, contribution of investments to GDP overtook consumption's, and will most likely be the key catalyst for growth. This increase in investment has had a multiplier effect on the creation of new jobs. Between 2005 to 2020, India will have 30 per cent share in new jobs in the world economy, compared to 14 per cent for China and 3 per cent for the US.
As we look to the future, we must remember that our growing role on the world stage should come with a sense of maturity, wisdom and enlightenment that is not only represented by our government but by us as individual ambassadors of our great country.
 suchitra@khaleejtimes.com

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