DHARMASHASTRA NATIONAL LAW

UNIVERSITY JABALPUR, MADHYA PRADESH

“INDIAN ECONOMY TRAJECTORY AND

FUTURE”

Submitted by: Submitted to:

Kamod Patel Mr. Akshay Khandekar
BALLB/043/2021 Teaching Associate Economics
2nd Semester DNLU, Jabalpur

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 Acknowledgment

I feel highly elated to work on the project “Indian Economy Trajectory and Future” The
practical realisation of the project has obligated the assistance of many persons.
First and foremost, I would like to thank my course teacher Mr. Akshay Khandekar for
providing me with this wonderful project topic. Also, I would like to thank The Respected
Vice Chancellor sir of our University Dr. V. Nagaraj for providing the best possible facilities
of I.T and remote access library for the research work.
I would like to thank God, my parents and all the members of the DNLU family from the
bottom of my heart who gave me the strength to accomplish the project with sheer hard work
and honesty.
I also owe my gratitude towards the university administration for providing me with all kinds
of help as and when required. These facilities and helped me a lot in making the project and
completing it successfully. I would also like to specially thank the library and I.T. staff for
helping us with providing the necessary websites and databases form the internet.
This project would not have been possible without the help of all of the above people
mentioned and I would like to thank them for their generous co-operation and help. To list
them all is not practically possible, and even to repay them with words may also not be
enough for the generous contributions that they have for making this project successful. Last
but not the least, I would also like to extend my warm and sincere thanks to all my colleagues
who contributed innumerable ways in the accomplishment of this project.

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 Table of Content

Introduction................................................................................................................................4
Research Question..................................................................................................................5
Research Objective.................................................................................................................5
Methodology..........................................................................................................................5
Mode of Citation....................................................................................................................5
Broad Overview.........................................................................................................................6
Major Economic Plans till 1990s...............................................................................................6
Evaluation of the Five-year Plans..............................................................................................7
The largest Hinderance to Economic growth in India till 1990s: Licence Raj..........................8
The 1980s Economic Crisis and way for LPG Reforms............................................................9
Reasons to Bring about LPG Reforms.....................................................................................10
Economic Downfall of 2008....................................................................................................11
The Indian Trajectory (2010-2014)..........................................................................................12
The Pandemic and its Effect on Indian Economy....................................................................13
The Recent Initiatives to foster Economic Growth..................................................................14
Government Incentives for Economic Recovery.....................................................................15
Conclusion................................................................................................................................16

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Introduction

I ndia is one of the world's fastest-growing economies, and its economy is the fifth-largest
in the world. It is a mixed economy, with elements of both capitalism and socialism, and
has undergone significant reforms in recent years to attract foreign investment and
promote growth. In this essay, we will discuss the Indian economy, its strengths, weaknesses,
and future prospects.
The Indian economy has come a long way since independence in 1947. It was largely
agrarian and relied on traditional methods of production until the 1950s when the government
began a series of economic reforms to encourage industrialization. The reforms included
heavy investment in infrastructure, state control over key industries, and a focus on import
substitution. However, the Indian economy faced several challenges during this period,
including high inflation, low productivity, and a balance of payments crisis.
The Indian economy began to liberalize in the 1990s, with a focus on privatization,
deregulation, and globalization. The reforms led to significant growth in the economy, with
GDP increasing from $263 billion in 1991 to $2.7 trillion in 2020. The economy has become
more open, with foreign investment playing a critical role in its growth. The service sector,
including IT and business process outsourcing, has emerged as a key driver of growth,
contributing more than 50% of the country's GDP.
India is a country with vast potential, but it faces several challenges that need to be addressed
for sustained growth. One of the major challenges is income inequality, with the richest 1%
of the population owning more than half of the country's wealth. Poverty remains a
significant challenge, with a large population living below the poverty line. The agriculture
sector, which employs more than half of the population, is largely unproductive and needs
significant investment to modernize.
Another challenge is the infrastructure deficit, with inadequate transportation, power, and
water supply hindering growth. The Indian government has launched several initiatives to
address these challenges, including the Make in India campaign, Digital India, and Skill
India. These initiatives aim to create a conducive environment for businesses to invest in the
country and create jobs. The future prospects of the Indian economy are bright. The country
has a young population, with more than half of its population under the age of 25, which
provides a significant demographic dividend. The Indian government has launched several
initiatives to harness the potential of its youth, including the Startup India program, which
aims to promote entrepreneurship and innovation.
India has also become a significant player in the global market, with several Indian
companies expanding globally and becoming leaders in their respective sectors. The country
is also a member of the BRICS group, along with Brazil, Russia, China, and South Africa,
which is expected to drive global growth in the coming years.

In conclusion, the Indian economy has come a long way since independence, and its future
prospects are bright. The country has made significant strides in liberalizing its economy and

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attracting foreign investment, but it faces several challenges that need to be addressed for
sustained growth. The Indian government's initiatives, along with the country's young
population and global presence, are expected to drive growth in the coming years. So, in this
project I would like to scrutinize the growth and development of economy since
independence and how it couped up with the world at different instances in the history.
Alongside the challenges in the meanwhile.

Research Question

 Why despite having so many policy initiatives we lagged behind in terms of human
development index?
 What are the major initiatives employed by the government to bolster the economic
development?
 What are the major challenges to the economy since Independence?
 What is the current state of the economy and the various government schemes?
 And if going by this steep trend the way ahead for the economy.

Research Objective

 To get a brief overview of the Indian Economy since Independence.

 Analysing the impact of the policies employed and the challenges.
 The rapid movement within the economic sectors due to policy implementations.
 Scrutinizing the current growth and the way ahead.

Methodology

I relied upon the analytical and doctrinal method of research for the project. In order to gain
essential and relevant details and outcomes of the research work, the researcher has
concentrated on collecting the data from the secondary source of information available
through various books, journals, statistical data on internet etc.

Mode of Citation

The researcher has adopted a uniform mode of “blue book 20th edition” citation throughout
the project.

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Broad Overview

India gained independence from British rule on August 15, 1947. The Indian economy at the
time was characterized by widespread poverty, low levels of industrialization, and a
predominantly agricultural sector. Over the next four decades, the Indian government pursued
a series of policies aimed at promoting economic growth, modernization, and self-sufficiency.

One of the most significant developments during this period was the adoption of a planned
economic system. The government established the Planning Commission in 1950 to
formulate and implement a series of five-year plans aimed at promoting industrialization and
economic development. The first five-year plan focused on agriculture, power, and irrigation
projects, while subsequent plans prioritized heavy industry and infrastructure development.

Another key policy during this period was the promotion of import substitution. The
government sought to reduce India's reliance on imports by encouraging the growth of
domestic industries, particularly in the manufacturing sector. This policy involved imposing
high tariffs on imported goods and providing subsidies and other incentives to domestic
producers.

Despite these policies, the Indian economy remained relatively stagnant throughout much of
the 1950s and 1960s. Economic growth picked up in the 1970s and early 1980s, driven by a
combination of factors including rising oil prices, increased agricultural productivity, and a
growing industrial sector. However, by the late 1980s, the economy had become increasingly
stagnant, characterized by high inflation, large fiscal deficits, and a balance of payments
crisis.

In 1991, the Indian government implemented a series of economic reforms aimed at

liberalizing the economy and promoting growth. These reforms, known as the New Economic
Policy (NEP), involved a series of measures including reducing trade barriers, deregulating
industries, and attracting foreign investment. The NEP led to a period of rapid economic
growth, with India becoming one of the fastest-growing economies in the world over the next
few decades.

Major Economic Plans till 1990s

India has had a series of economic plans since gaining independence in 1947, aimed at
promoting economic growth and development. Here are some of the key economic plans that
were implemented from 1947 to 1990:

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 First Five-Year Plan (1951-1956): The first five-year plan focused on agriculture, power,
and irrigation projects. It aimed to increase agricultural productivity, expand basic
infrastructure, and create employment opportunities.
 Second Five-Year Plan (1956-1961): The second plan emphasized industrialization and
aimed to create a strong industrial base in the country. The plan focused on the
development of heavy industries such as steel, coal, and power.
 Third Five-Year Plan (1961-1966): The third plan aimed to accelerate industrial growth
and expand the infrastructure. The plan also emphasized the development of public sector
industries.
 Fourth Five-Year Plan (1969-1974): The fourth plan focused on self-reliance and
emphasized the development of industries that would reduce India's dependence on
imports. The plan also aimed to increase agricultural productivity and create employment
opportunities.
 Fifth Five-Year Plan (1974-1979): The fifth plan focused on poverty alleviation and
employment generation. The plan also aimed to promote the growth of small-scale
industries.
 Sixth Five-Year Plan (1980-1985): The sixth plan focused on improving the efficiency
and productivity of the economy. It aimed to increase industrial growth, improve
agricultural productivity, and create employment opportunities.
 Seventh Five-Year Plan (1985-1990): The seventh plan aimed to modernize and
liberalize the economy. The plan emphasized the need for private sector participation in
the economy and focused on increasing exports and attracting foreign investment.

Overall, these economic plans laid the foundation for India's economic development,
promoting the growth of key sectors such as agriculture, industry, and infrastructure.
However, by the late 1980s, the Indian economy was facing significant challenges such as
high inflation, large fiscal deficits, and a balance of payments crisis, which led to the
implementation of the New Economic Policy (NEP) in 1991.

Evaluation of the Five-year Plans

The success of the five-year plans in India has been a subject of debate among economists
and policymakers. While there have been some notable achievements, there have also been
significant challenges and limitations.
Some of the successes of the five-year plans include:

 Industrial Growth: The five-year plans led to the growth of the industrial sector in India.
The plans focused on developing heavy industries such as steel, coal, and power, which
laid the foundation for India's industrial growth.
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 Agricultural Growth: The five-year plans also aimed to increase agricultural
productivity. The plans focused on providing irrigation facilities, improving land use, and
promoting the use of fertilizers, which led to increased agricultural output.
 Infrastructure Development: The five-year plans also focused on developing
infrastructure such as roads, railways, and ports, which improved connectivity and
facilitated economic growth.
 Poverty Alleviation: The five-year plans also aimed to reduce poverty by creating
employment opportunities and providing social welfare programs.

However, there were also significant challenges and limitations in the implementation of the
five-year plans. Some of these include:

 Limited Resources: The five-year plans were often hampered by limited financial
resources, which affected the implementation of key projects.
 Inefficient Implementation: The implementation of the plans was often inefficient, with
delays and cost overruns being common.
 Uneven Development: The benefits of the plans were often concentrated in urban areas,
leading to uneven development across the country.
 Bureaucratic Delays: The plans were often delayed due to bureaucratic inefficiencies
and lack of coordination between different agencies.

Overall, while the five-year plans had some successes, they also faced significant challenges
and limitations. The plans laid the foundation for India's economic development, but they
were also marked by inefficiencies and uneven development. Despite these challenges, the
plans were an important step towards modernizing and developing India's economy.

The largest Hinderance to Economic growth in India till 1990s: Licence Raj

The period of License Raj in India refers to the time between 1947 and 1990, when the Indian
economy was highly regulated and controlled by the government. The term "License Raj"
was coined by Indian economist Raj Krishna in the 1970s to describe the complex system of
licenses, permits, and regulations that were required to start and operate businesses in India.

During the License Raj period, the government controlled the allocation of resources, set
prices, and regulated the production and distribution of goods and services. The private sector

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was heavily restricted and required government approval and licenses to operate. Foreign
investment was also highly restricted, and import and export were tightly controlled.

The License Raj period had a significant impact on India's economic growth and
development. While the policies were aimed at promoting self-sufficiency and reducing
dependency on foreign imports, the complex regulations and bureaucratic procedures stifled
entrepreneurship and hindered the growth of the private sector. The licensing system led to
corruption and rent-seeking, with businesses often having to bribe officials to obtain licenses.

The License Raj period also led to a significant decline in the quality of public services, such
as healthcare and education, as the government focused on promoting heavy industries and
neglected social sectors. The License Raj period came to an end in 1991, with the
implementation of economic reforms under the New Economic Policy (NEP). The NEP
aimed to liberalize the economy, remove bureaucratic barriers to entrepreneurship, and
promote private sector participation in the economy. The reforms led to a significant increase
in foreign investment, export growth, and improved economic growth and development in
India.

The 1980s Economic Crisis and way for LPG Reforms

The 1980s economic crisis in India was a period of significant economic challenges, marked
by high inflation, a balance of payments crisis, and a decline in economic growth. The crisis
was a result of a combination of domestic and external factors.
Domestically, the crisis was triggered by a combination of factors, including a significant
increase in government spending, a rise in subsidies, and a decline in agricultural
productivity. The government had also increased borrowing to finance its expenditure,
leading to a rise in public debt. This, in turn, led to high inflation, as the government printed
more money to finance its deficit.
Externally, the crisis was triggered by a decline in international oil prices, which had a
significant impact on India's balance of payments. India, which was heavily dependent on oil
imports, saw a significant increase in its import bill, which led to a decline in foreign
exchange reserves.

The crisis led to a significant decline in economic growth, with GDP growth falling from an
average of 5.5% in the 1970s to 3.5% in the 1980s. There was also a significant decline in
industrial production and investment, as businesses were impacted by high inflation and the
balance of payments crisis.
To address the crisis, the Indian government implemented a series of measures, including
devaluation of the rupee, reduction of subsidies, and liberalization of trade policies. The

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government also implemented structural reforms aimed at reducing the role of the state in the
economy and promoting private sector participation.

These measures, along with the global economic recovery in the late 1980s, led to a
significant improvement in India's economic situation. The Indian economy grew at an
average rate of 5.7% in the 1990s, and the government continued with the liberalization
policies, which led to a significant increase in foreign investment and economic growth in the
subsequent years.

Reasons to Bring about LPG Reforms

The LPG (liberalization, privatization, and globalization) reforms were implemented in India
in the early 1990s to address the economic crisis that the country was facing at that time. The
reforms were aimed at reducing the role of the state in the economy and promoting private
sector participation.
There were several reasons why the LPG reforms were implemented:
Balance of payments crisis: India was facing a severe balance of payments crisis in the early
1990s, with the country's foreign exchange reserves rapidly depleting. The crisis was
triggered by a combination of factors, including a significant increase in oil prices, a decline
in international trade, and a rise in the fiscal deficit due to increased government spending.
The LPG reforms were aimed at addressing the balance of payments crisis by promoting
exports and reducing imports.
Inefficient public sector: The public sector in India was inefficient and plagued by
bureaucratic hurdles, which led to low productivity and a lack of competitiveness. The LPG
reforms were aimed at improving the efficiency of the public sector by promoting
competition and innovation in the private sector and reducing the burden on the government.
Trade liberalization: India had a highly protected economy with significant trade barriers,
which led to a lack of competition and innovation in the private sector. The LPG reforms
were aimed at liberalizing the Indian economy and promoting trade and investment with
other countries.
Attracting foreign investment: India was facing a severe shortage of foreign exchange, and
the government believed that attracting foreign investment would help address this problem.
The LPG reforms were aimed at attracting foreign investment by promoting a business-
friendly environment and reducing bureaucracy and red tape.

In conclusion, the LPG reforms were implemented to promote economic growth, reduce
poverty, and increase the competitiveness of the Indian economy. The reforms played a

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significant role in transforming the Indian economy and laying the foundation for its rapid
growth in the subsequent decades.

To address the crisis, the Indian government was forced to seek a loan from the International
Monetary Fund (IMF) in 1991. The IMF loan came with conditions, including the
implementation of economic reforms aimed at reducing the role of the state in the economy
and promoting private sector participation. This marked the beginning of the LPG reforms in
India.

 The liberalization aspect of the LPG reforms involved reducing the role of the state in the
economy and promoting private sector participation. The government began to dismantle
the licensing and permit system, which had been a feature of the Indian economy since
the 1950s. This led to an increase in competition and innovation in the private sector.
 The privatization aspect of the LPG reforms involved the sale of state-owned enterprises
to private companies. This was aimed at improving the efficiency of these enterprises and
reducing the burden on the government.
 The globalization aspect of the LPG reforms involved the opening up of the Indian
economy to international trade and investment. The government began to reduce trade
barriers and promote foreign investment in India.
The LPG reforms played a significant role in transforming the Indian economy. The reforms
led to an increase in foreign investment, improved economic growth, and a reduction in
poverty. However, there were also some negative effects, including job losses and rising
income inequality.

Economic Downfall of 2008

The 2008 economic crisis, also known as the Global Financial Crisis, was a severe worldwide
economic downturn that began in 2008 and lasted for several years. The crisis was triggered
by the collapse of the housing market in the United States, which led to a global credit crunch
and financial panic.

The crisis had several causes, including:

Housing market collapse: In the early 2000s, the US housing market experienced a boom,
with housing prices rising rapidly. Many people bought homes with subprime mortgages,
which had low initial interest rates but high rates later on. When the housing market
collapsed, many homeowners were unable to pay their mortgages, leading to a wave of
foreclosures and a decline in housing prices.

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Financial innovation: Financial institutions created complex financial instruments, such as
collateralized debt obligations (CDOs) and credit default swaps (CDSs), which were meant to
spread risk and provide liquidity. However, these instruments were poorly understood, and
their risks were not adequately assessed. When the housing market collapsed, many of these
instruments became worthless, causing widespread losses in the financial sector.

Excessive risk-taking: Financial institutions engaged in excessive risk-taking, investing

heavily in high-risk assets such as subprime mortgages and CDOs. This led to a buildup of
systemic risk in the financial system, making it vulnerable to a shock such as the collapse of
the housing market.
Regulatory failure: Regulatory agencies failed to adequately oversee and regulate financial
institutions, allowing them to engage in risky behavior without sufficient oversight. This
failure was in part due to a belief that financial markets were self-correcting and did not
require significant regulatory intervention.
The economic crisis had a significant impact on the global economy, with many countries
experiencing a sharp decline in economic activity and high levels of unemployment.
Governments and central banks implemented various measures to mitigate the crisis,
including fiscal stimulus packages, bailouts of financial institutions, and monetary policy
interventions.
Overall, the 2008 economic crisis was a significant event in the history of the global
economy, highlighting the risks associated with financial innovation, excessive risk-taking,
and regulatory failure. It also led to a rethinking of the role of government in the economy
and the need for better regulation and oversight of financial markets.

The Indian Trajectory (2010-2014)

The Indian economy from 2010 to 2014 faced several challenges, including high inflation, a
slowdown in investment, and a decline in exports. The global economic slowdown, especially
in the European Union and the United States, had an adverse impact on India's exports, and
the Indian economy was facing headwinds from rising oil prices, a depreciating rupee, and
high interest rates.
The period from 2010 to 2014 also witnessed several corruption scandals and policy
paralysis, which eroded investor confidence and slowed down economic reforms. Some of
the key economic indicators during this period were as follows:

Inflation: Inflation remained persistently high during this period, with the Wholesale Price
Index (WPI) inflation averaging around 7.5% from 2010 to 2014.
GDP growth: India's GDP growth slowed down during this period, with the economy
growing at an average annual rate of 6.7% from 2010 to 2014, compared to the average
growth rate of 8.5% during the preceding five years (2005-2010).
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Fiscal deficit: The fiscal deficit widened during this period, primarily due to the high
expenditure on subsidies, which included fuel subsidies, food subsidies, and fertilizer
subsidies. The fiscal deficit averaged around 4.5% of GDP from 2010 to 2014.
Current account deficit: The current account deficit widened during this period due to the
decline in exports and a surge in imports, especially of gold and oil. The current account
deficit averaged around 3.5% of GDP from 2010 to 2014.
In totality, the Indian economy from 2010 to 2014 faced several challenges, including high
inflation, a slowdown in investment, and a decline in exports. These challenges were further
exacerbated by policy paralysis and corruption scandals, which eroded investor confidence
and slowed down economic reforms. The slowdown in the Indian economy was also due to
global factors such as the Eurozone crisis, which impacted India's exports, and a slowdown in
China's economy, which reduced demand for India's commodities.

In 2014, the Indian general election resulted in a change of government, with the Bharatiya
Janata Party (BJP) coming to power with a clear majority. The new government, led by Prime
Minister Narendra Modi, initiated a series of economic reforms, including the "Make in
India" program, which aimed to boost manufacturing and promote foreign investment, and
the Goods and Services Tax (GST), which aimed to simplify the tax system.

These reforms, along with other measures such as increased public spending on infrastructure
and social programs, helped to revive India's economy. In the years since 2014, India has seen
a significant increase in foreign investment, a revival in manufacturing, and a decline in
inflation. While there have been some challenges, such as the recent COVID-19 pandemic,
the Indian economy has generally shown resilience and growth in the years since 2014.

The Pandemic and its Effect on Indian Economy

The COVID-19 pandemic has had a significant impact on the global economy, leading to a
contraction in GDP and widespread job losses. The pandemic has caused disruptions in
supply chains, reduced consumer demand, and forced many businesses to close. Governments
have implemented fiscal and monetary policies to mitigate the impact, such as stimulus
packages, interest rate cuts, and loan moratoriums. The pandemic has also highlighted the
importance of healthcare systems and increased healthcare spending. While the global
economy has shown signs of recovery, the long-term effects of the pandemic on the economy
are yet to be fully understood.

The COVID-19 pandemic has had a significant impact on the Indian economy, with several
sectors being severely affected. Here are some of the effects:

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 GDP contraction: India's GDP contracted by 7.7% in the fiscal year 2020-21, which is
the first contraction in the Indian economy in four decades. The pandemic led to
disruptions in supply chains, reduced demand, and a decline in economic activity, which
resulted in the contraction.
 Unemployment: The pandemic has led to significant job losses, especially in the
informal sector, which employs a large number of people in India. According to estimates,
around 122 million people lost their jobs in India during the pandemic.
 Disruptions in supply chains: The lockdowns imposed to contain the spread of the virus
led to disruptions in supply chains, which impacted manufacturing and logistics.
 Drop in consumer demand: The pandemic led to a drop in consumer demand as people
reduced their spending due to income losses, uncertainty, and fear of the virus.
 Impact on small businesses: small businesses, which are a significant contributor to the
Indian economy, were severely impacted by the pandemic. Many businesses were forced
to shut down permanently, leading to job losses and reduced economic activity.
 Healthcare system strain: The pandemic put a significant strain on India's healthcare
system, which struggled to cope with the surge in cases. This led to increased healthcare
spending, which impacted the government's finances.

However, the Indian government has implemented several measures to mitigate the impact of
the pandemic, including fiscal stimulus packages, monetary policy interventions, and
healthcare spending. The economy has shown signs of recovery in recent months, with
increased consumer demand, a revival in manufacturing, and an uptick in employment.
Nevertheless, the pandemic's impact on the Indian economy has been significant, and the
long-term effects are yet to be fully understood.

The Recent Initiatives to foster Economic Growth

The Indian government has implemented several initiatives to boost economic growth,
especially in the wake of the COVID-19 pandemic. Some of these initiatives include:
Production Linked Incentive (PLI) scheme: The government has launched a PLI scheme in
various sectors such as electronics, pharmaceuticals, and textiles to incentivize domestic
manufacturing and boost exports.
National Infrastructure Pipeline (NIP): The NIP aims to invest Rs. 111 lakh crore ($1.5
trillion) in infrastructure projects over the next five years to create jobs and boost economic
growth.
Atmanirbhar Bharat Abhiyaan: The government launched this initiative to promote self-
reliance and reduce dependency on imports. It includes measures such as increasing domestic
manufacturing, promoting exports, and reducing unnecessary imports.

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Agricultural reforms: The government has implemented several agricultural reforms,
including the liberalization of agricultural markets and the provision of a legal framework for
contract farming, to boost agricultural productivity and income.
Digital India: The government's Digital India initiative aims to increase digital
infrastructure, promote digital literacy, and boost e-commerce, which has become even more
critical during the pandemic.

Looking ahead, the government needs to focus on implementing structural reforms to boost
productivity and improve the ease of doing business in the country. This includes labour and
land reforms, improving the infrastructure, and reducing bureaucratic hurdles. Additionally,
increasing public spending on education and healthcare can have long-term benefits for the
economy. Finally, the government needs to ensure that economic growth is inclusive and
benefits all sections of society, including the poor and marginalized.

Government Incentives for Economic Recovery

The Indian government has announced several economic packages to support the economy
during and after the COVID-19 pandemic. Some of the key economic packages are:

 Atmanirbhar Bharat Abhiyaan: This was a Rs. 20 lakh crore ($267 billion) economic
package announced in May 2020, which included both fiscal and monetary measures. The
package focused on supporting MSMEs, agriculture, and other sectors.
 Pradhan Mantri Garib Kalyan Yojana (PMGKY): This was a package announced in
March 2020, which included measures such as free foodgrains, cash transfers, and
insurance cover for healthcare workers.
 Aatmanirbhar Bharat Rozgar Yojana: This was a package announced in November
2020 to boost employment, especially in the formal sector. The package provided
financial incentives to firms to hire new employees.
 Production Linked Incentive (PLI) scheme: This was a package announced in various
sectors such as electronics, pharmaceuticals, and textiles to incentivize domestic
manufacturing and boost exports.
 Loan moratoriums: The Reserve Bank of India announced a loan moratorium for
borrowers impacted by the pandemic, which provided relief to businesses and individuals
who were facing financial difficulties.

Overall, these economic packages provided much-needed relief to the economy during the
pandemic. However, to ensure sustained economic growth, the government needs to focus on
implementing structural reforms, increasing public and private investment, and promoting
inclusive growth.

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Conclusion

As of now, the Indian economy is showing signs of recovery after the impact of the COVID-
19 pandemic. In the first quarter of the fiscal year 2021-22 (April-June 2021), India's GDP
grew at a rate of 20.1%, indicating a strong rebound. However, there are still challenges to be
addressed, such as inflation, job losses, and the impact of the pandemic on the informal
sector.

To sustain economic growth, the government needs to focus on structural reforms, attracting
foreign investment, and promoting innovation and entrepreneurship. The government's focus
on sectors such as healthcare, education, and infrastructure can also provide new
opportunities for growth. Encouraging exports, improving the ease of doing business, and
promoting inclusive growth are other important areas for the government to focus on.
Overall, sustained efforts to improve the business environment and boost investor confidence
are crucial to achieving long-term economic growth.
The Indian economy has significant potential for growth in the years to come. Some of the
key factors that could drive the growth of the Indian economy include:

Demographic Dividend: India has a young population, and this demographic dividend could
translate into a large workforce and consumer base that could drive economic growth.
Technological Advancements: India has a strong base of skilled workers and entrepreneurs,
which combined with advancements in technology could create new opportunities for growth
and innovation.
Infrastructure Development: The government's focus on developing infrastructure such as
roads, railways, and ports could boost productivity and create new job opportunities.
Focus on Exports: The government's focus on boosting exports, coupled with India's
competitive advantages in areas such as IT, pharmaceuticals, and manufacturing, could help
to boost economic growth.
Inclusive Growth: The government's focus on promoting inclusive growth and reducing
inequality could help to create a more sustainable and resilient economy.

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while there are challenges such as the impact of the COVID-19 pandemic, India has
significant potential for economic growth in the years to come, driven by a combination of
demographic factors, technological advancements, infrastructure development, focus on
exports, and inclusive growth.

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