Agreements with America will speed up India’s development

[ad_1]

Modi recently visited America. He has also achieved great success in this journey. The Indian Prime Minister has held direct talks with the executive officers of several multinational companies in the US regarding their investments in India.

The recently released data related to the growth of the Indian economy for the financial year 2022-23 and the fourth quarter has given an impression that the economic growth rate in India has been much higher than expected. The GDP growth rate in India has been 7.2 percent in the financial year 2022-23 and the Indian economy has grown at a rate of 6.1 percent in the fourth quarter of January-March 2023. While the economic growth rate in the third quarter of October-December 2022 was 4.5 percent. The economic growth rate in India has been much higher than the earlier estimates made by various financial institutions. Certainly, the figures related to economic development for the financial year 2022-23 have been very encouraging. The GDP growth rate in India has been better than that of all other major economies of the world and the Indian economy continues to be the fastest growing economy in the world. India has achieved twice the speed of China in terms of economic development. The size of the Indian economy has now crossed US$ 3.50 trillion.

It is a matter of joy that the growth rate in the agriculture sector in the financial year 2022-23 has been 4.5 percent, which is much higher than the growth rate of 3.5 percent in the financial year 2021-22. Farmers are directly benefiting from the fast economic growth rate in the field of agriculture, new employment opportunities are being created in rural areas, migration from rural areas to cities is decreasing and farmers’ income is increasing. Due to which a new market is being created for the products produced in India. Similarly, the rate of economic growth in the service sector has been 11 percent during the financial year 2022-23, which is much higher than the growth rate of 9 percent in the financial year 2021-22. Due to the fast growth rate in the service sector, new employment opportunities are being created in urban areas. Yes, the rate of growth in the manufacturing sector is yet to pick up. At present, the contribution of the industry sector in the country’s GDP is 17 percent, it is necessary to take it further to 24 to 25 percent. If success is achieved in bringing the contribution of the industry sector up to 25 percent, then crores of new opportunities of high paying jobs can be created in the country.

With this in view, the Prime Minister of India Narendra Modi has recently visited America. He has also achieved great success in this journey. The Indian Prime Minister has held direct talks with the executive officers of several multinational companies in the US regarding their investments in India. Google Company’s Chief Executive Officer Sundar Pichai has announced that Google Company will invest US $ 1,000 crore in India. Along with this, Elon Musk, the Chief Executive Officer of Tesla Company, has also told in a statement given after meeting the Indian Prime Minister that his company is going to invest a huge amount in India soon and in this regard he himself Going to visit India in the year 2024. American aerospace company Boeing has also announced to invest US$ 800 million in India soon. With this investment, the work of improving Indian infrastructure and pilot training will be done. In fact, the demand for skilled pilots in India is on the rise and in the next 20 years, the country will require around 31,000 new pilots. India will be greatly helped by the investment being made by Boeing in bridging this gap.

American e-commerce company Amazon’s Chief Executive Officer Andy Jassy has also announced that the Amazon company will soon invest US $ 1,500 crore in India. The company has already invested US $ 1,100 million in India, now the company’s total investment in India will increase to US $ 2,600 million.

Similarly, an agreement has also been reached between India and the US to set up a jet engine manufacturing unit. In this regard, Hindustan Aeronautics Company from India and General Electric Company from America have signed the MoU. With this, the engine of Tejas aircraft being manufactured in India will also be upgraded. America has also agreed to provide the state-of-the-art and powerful MQ-9B drone to India. The US has also agreed to train 60,000 Indian engineers with a view to providing semiconductor facilities. That is, high technology in this regard will be made available to Indian engineers. A company named Macron is also going to set up a unit for manufacturing drones in India itself, on its construction a huge amount will be invested by the Macron company in India.

The US has decided to remove the additional duty imposed on the import of Indian steel and aluminium. Due to this, Indian steel and aluminum will become cheaper in the American market than before and this will increase the demand for steel products made in India in the American market. The Indian steel industry has the potential to benefit greatly from this.

The investment of the above-mentioned huge amounts by various US companies in India will definitely boost the growth rate in the manufacturing sector in India and the participation of the manufacturing sector in India’s total gross product will improve.

The rate of Gross Fixed Capital Formation (GFCF) in India has also been at an encouraging level of 35 per cent in the January-March 2023 quarter and 29 per cent in the entire financial year 2022-23. This means that improvement in the investment sector is visible in India, which is going to help in accelerating the economic growth rate for the coming times. At present, the rate of capital investment is increasing due to the huge amount of investment being made by the central government in the field of infrastructure, but now since more than 74 percent of the total production capacity of industrial units is being used, now the private sector Companies of India will also promote their investment in India, soon the rate of gross fixed capital formation will start showing more improvement.

It is also a matter of satisfaction for the Indian economy that the monsoon in India has been consistently good for the last 4-5 years and this year also the possibility of normal rains has been expressed in India. The factors for the strength of the Indian economy include the various reform programs implemented by the central government in the economic sector, creating a great environment for investment in India, the availability of a consumer base of more than 130 crore citizens in India i.e. a huge domestic market. Due to which the Indian economy is growing at a fast pace. In India, the implementation of Goods and Services Tax Law, Bankruptcy Law and Production Based Incentive Scheme in the banking sector is also seen to have an impact on the Indian economy. Efforts are also being made on a war footing to generate employment opportunities from agriculture sector to service sector and industry sector, so that the human capital of the country can be used properly.

Apart from agriculture, India is also moving fast in the field of defense and technology and the export of products manufactured using high technology is also increasing rapidly. The agreements signed recently during the US visit of Prime Minister Narendra Modi are all in the high-tech sector. Now airplane engines will also be made in India, due to which many products manufactured in the field of defense in India will be exported to many other countries. Overall, it can be said that due to the many agreements recently concluded by India with US and American multinational companies, foreign investment from America in India will increase a lot, this will increase the growth rate of Indian economy and millions of jobs will also be created in India. New opportunities will be created.

– Prahlad Sabnani

retired deputy general manager

state Bank of India

Leave a Reply

Your email address will not be published. Required fields are marked *