Over the past nine years, India has established itself as a pioneer in both investment and innovation, spearheaded by the transformational policies of the NDA government led by Prime Minister Narendra Modi. The nation is witnessing remarkable progress in these areas and fostering an environment that is increasingly conducive to the ease of doing business. When Modi took office, he pledged to unleash the true potential of the Indian economy by promoting a business-friendly environment that would attract both domestic and international investment. The government quickly embarked on an ambitious reform agenda, overhauling regulations, streamlining processes and removing barriers that had long hindered the ease of doing business in the country. A testament to its growing prominence on the global stage, India’s ranking in the Global Innovation Index has soared from 81st in 2015 to an impressive 40th in 2022.
One of the most striking indicators of India’s economic prowess is the significant increase in foreign direct investment (FDI) as a percentage of GDP. From a meagre 2.2% during the fiscal year 2005-2014, foreign direct investment rose to 2.6% during the fiscal year 2015-22. A staggering 147% increase in FDI between 2013 and 2022 speaks to the world’s confidence in India’s potential as an investment destination. The introduction and successful implementation of the Goods and Services Tax (GST) in 2017 has also significantly reduced the tax compliance burden on businesses, leading to increased productivity and cost savings. Moreover, the intellectual landscape in India has seen incredible developments that further strengthen its credibility as a hub of innovation. Patent granting has seen an impressive nearly five-fold increase between 2014 and 2022, indicating a growing culture of creativity and originality within the nation. Such steady growth of the innovation ecosystem is undeniably commendable as it reflects its key role in diversifying the Indian economy and fostering a thriving spirit of private entrepreneurship.
Under the leadership of PM Modi, the Indian economy has undergone remarkable reforms resulting in a conducive environment for business operations in the country. Ministries and States/Union Territories have collectively reduced more than 39,000 compliance requirements, streamlined bureaucratic processes and facilitated smooth operations for businesses. In addition, more than 44,000 approvals were granted via National Single Window System, further increasing the efficiency of regulatory procedures. A hefty sum of Rs 500 crore has been committed to the ambitious ONDC (Open Network for Digital Commerce) initiative, a pioneering effort aimed at revolutionizing the digital commerce industry in India. This investment is intended to encourage innovation and support the growth of the digital ecosystem, making it more accessible to both businesses and consumers. Furthermore, the Modi government’s proactive approach to corporate insolvency has yielded significant results, with corporate insolvency reaching an impressive 67%. This achievement signifies the government’s commitment to solving financial problems in businesses, thereby promoting a stable and resilient economic environment. Overall, these initiatives and reforms demonstrate the government’s commitment to creating a business-friendly environment, fostering innovation and boosting economic growth in India.
The Indian economy is placing a significant bet on achieving “Aatmanirbharta”. This commitment is exemplified by the implementation of the Production Linked Incentives (PLI) scheme, which has already received approval for 717 applications across 14 sectors, entailing an impressive investment of Rs 2.74 lakh crore. The initiative aims to strengthen the manufacturing sector and has led to a significant increase in employment, with the number of jobs rising from 57 million in 2017–18 to 62.4 million in 2019–20. Apart from this, India’s drive towards self-reliance is also having a notable impact on the export front. In the fiscal year 2022-23, the country recorded a remarkable growth of 14% in exports, with the total value reaching a considerable 770.18 billion. Of particular note is the staggering 50.52% increase in exports of electronic goods during the same period. These statistics underscore the determination of the Indian economy to promote self-reliance and become a more self-sufficient nation. By focusing on manufacturing, attracting investment and promoting exports, India is setting itself up for sustainable growth and economic prosperity. The emphasis on ‘Aatmanirbhar Bharat’ reflects a strategic approach to reduce dependence on foreign imports and strengthen its position in the global market.
In India, there is a strong focus on empowering startups and supporting entrepreneurship, which is evident from the rapidly growing startup ecosystem in the country. Being the third largest ecosystem in the world, India provides an environment for startups to flourish. To further support their growth, the government has introduced the Fund of Funds for Start-ups (FFS) scheme, which has been allocated a sizeable corpus of Rs.10,000 crores. The impact of these initiatives is evident in the employment sector as India’s start-ups collectively employ 8.6 lakh persons, contributing significantly to job creation. To maintain this thriving ecosystem, start-ups receive significant incentives, including an 80% discount on patent applications and a 50% discount on trademark applications. These measures aim to reduce the financial burden on start-ups and encourage them to protect their intellectual property, and encourage innovation and creativity. Additionally, India’s business landscape goes beyond startups with over 1.72 million micro, small and medium enterprises (MSMEs) registered on the Udyam portal. This indicates a diverse and vibrant business environment in the country that caters to businesses of various scales. Overall, India’s commitment to supporting startups and entrepreneurship is evident in its innovative policies, financial incentives and the remarkable growth of its ecosystem, which ultimately leads to economic development and employment opportunities for its citizens.
Putting India first, with a strong focus on promoting a business-friendly environment, Modi’s government has made remarkable strides in enabling and supporting business growth in the country. Despite internal and external challenges, the government remains determined to deliver on its initiatives. Benefiting from a stable political environment and a robust economic base, India is actively working towards ease of doing business, creating a favourable ecosystem for entrepreneurs and companies. The government’s commitment to facilitating business growth is evident in the implementation of various reforms and policies that streamline bureaucratic processes, reduce red tape and encourage investment. This proactive approach has already begun to yield positive results, attracting domestic and foreign investment and supporting economic progress. With a firm determination to prioritize the country’s development, the government’s efforts are paving the way for increased employment opportunities, technological advancement and overall economic prosperity. As India continues to focus on business-friendly initiatives, there is a common hope that this positive momentum will continue and lead the nation to a brighter, sustainable and more prosperous future.
