6 Reasons India Has Transformed Into An Economic Powerhouse In 9-Years

Prime Minister Narendra Modi on May 30 marked the nine-year completion of the Bharatiya Janata Party-led central government. Now, the official Twitter handle of BJP on Monday shared a video clip of 1.40 second duration highlighting the achievements of BJP-led central government with the hashtag #9YearsOfEconomicReforms. It states, "under PM Modi's leadership, New India is becoming a global economic powerhouse!"

The video begins with the quote "Every sixth person in the world is an Indian. When India progress, the world also progresses. When India reforms, the world transforms."
The video clip states that India's Gross National Income" doubled highlighting that it was Rs 123 crore in 2014-15 and now it has surged to Rs 266 crore in 2022-23.

"The Foreign Direct Investment (FDI) inflows rise by 135%. FDI was $36.05 billion in 2013-14 and soared to $84.84 billion in 2021-22," mentioned the video clip. It reported that service exports register 112% rise which was $152 billion in 2013-14 and jumped to $323 billion in 2022-23.

As per the video clip, there is a surge of 121% in Direct Tax Collections which was recorded at Rs 6.3 lakh crore in 2013-14 and rallied to Rs 14.1 crore in 2021-23.
To highlight the 9 YearsOfEconomicReforms under BJP led central government, the video clip states, GST: Going Stronger Together and specifies that GST collections for April 2023 remain highest ever at Rs 1.87 lakh crore and e-way bills generated RS 312 crore till March 2023.

GST is the first of its kind system in the country, a landmark achievement which is bound to take the nation towards exponential growth, said Prime Mininster Narendra Modi.

The video highlighting 9YearsOfEconomicReforms further highlighted JAM Trinity (Jan Dhan- Aadhaar-Mobile) wherein PM Modi said "JAM vision will serve as the bedrock of many initiatives to come. For me, JAM is about Just Achieving Maximum. Maximum value for every rupee spent. Maximum empowerment for our poor. Maximum technology penetration among the masses."

Meanwhile, the recent report of Morgan Stanley dated May 31, 2023 stated, India, under Prime Minister Narendra Modi, has transformed, gaining a position in the world order and becoming a key driver for Asia and global growth.

Morgan Stanley said significant scepticism about India, particularly with overseas investors, ignores the significant changes that have taken place in India, especially since 2014. Rejecting criticism that India has not delivered its potential (despite it being the second-fastest-growing economy and among the top-performing stock markets over the past 25 years) and that equity valuations are too rich, saying such a view ignores the systematic reforms in the last nine years, as per a PTI report.

"This India is different from what it was in 2013. In a short span of 10 years, India has gained positions in the world order with significant positive consequences for the macro and market outlook," it said. "India has transformed in less than a decade." Listing the 10 big changes that have happened since Prime Minister Narendra Modi took office in 2014, the brokerage said bringing corporate tax at par with peers and infrastructure investment picking pace are one of the biggest supply-side policy reforms, added the PTI report.

Manufacturing and capital spending as a percentage of GDP has continuously risen, Morgan Stanley said, adding export market share is projected to more than double to 4.5% by 2031. Also, there has been a major shift in the consumption basket following lower volatility in inflation and shallower interest rate cycles. All these have led to a profit boom for corporate and stock market investors and a breakdown in correlation with global oil prices.

"As India's per capita income increases from USD 2,200 currently to about USD 5,200 by 2032, this will have major implications for change in the consumption basket, with an impetus to discretionary consumption," it said. "We expect inflation to remain benign and less volatile, which would imply shallower rate cycles. Shallower rate cycles could also imply more benign equity market cycles." On the benign trend in the current account deficit, it said it believes "India's structural transformation will feed into the saving-investment dynamics, implying gains for its external balance sheet, with a progressively narrower trend in the CAD."