Know 5 good things about Indian economy

world’s fastest growing economy

At present, there is recession everywhere in the world. After the fastest inflation and banking crisis in 40 years, America is now standing on the threshold of recession. Europe’s largest economy Germany has gone into recession. Many small countries of the world are on the verge of bankruptcy. Meanwhile, India remains the fastest growing economy among the major countries of the world. India’s GDP growth in the March quarter has been 6.1 per cent, which is higher than expected. In comparison, China’s GDP growth was only 4.5 per cent. The GDP growth for the last financial year has been 7.2 per cent.

India did what no one could do in the matter of inflation

India has got a big victory on the inflation front. In April 2023, inflation in India was at 4.7 percent. In America it was 4.9 percent. Compare this with the tenure of UPA-2, then the average inflation rate was 10 per cent. At the same time, during 2009 to 2014, the inflation rate in America was between 1 to 3 percent, which is standard for any developed country. Inflation in India has been very low in the last few years as compared to the rest of the world. A few months ago, the inflation rate in America had reached a 40-year high of 9.1 per cent. The inflation rate in the UK in April 2023 was 8.7 percent. In the year 2022, it was around 9 percent. In October 2022, it reached a high level of 11.1 percent. On the other hand, India, a developing country, managed to maintain the inflation rate between 6-7 percent during this period.

Banks that were once in trouble are giving bumper profits today

In the year 2015, asset quality review started in public sector banks. At that time, one bed loan after another had come to the fore. In March 2018, it was revealed that the actual NPAs of public sector banks had reached a dreadful level of 14.6 per cent. Public sector banks had a loss of Rs 85,390 crore in the financial year 2017-18. Between 2015-16 to 2019-20, public sector banks incurred losses. This total was Rs 2.07 lakh crore. At one point of time, 11 out of 21 public sector banks had come under the PCA framework of the RBI. This crisis is now completely over. Accounting practice has been corrected. Some banks were recapitalised. Some have been merged. As a result, the gross NPA of public sector banks has come down to around 5 per cent. The total profit of public sector banks in the financial year 2021-22 was Rs 66,543 crore. Also all the banks made profits.

The condition of the banks improved further in the financial year 2022-23. From a loss of Rs 85,390 crore in the year 2017-18, public sector banks have come to a profit of Rs 1.04 lakh crore in 2022-23. SBI is on top. Its profits have jumped 59 percent annually. According to India Ratings and Research associated with Fitch Group, the best asset quality of banks has been seen in the last 10 years.

5th largest economy in the world

In the year 1950, India was the sixth largest economy in the world. After this, the economic policies of the first 40 years took it down instead of up. In the year 1990, the Indian economy fell to the 12th position. There was some recovery after the 1991 reforms. By the year 2014, we came at 10th position. Now our economy has become the 5th largest economy in the world. IMF estimates that India could become the third largest economy by the year 2027.

Revenue deficit target achieved

In the financial year 2022-23, the country’s revenue deficit stood at 6.4 per cent. This is less than 6.7 per cent of GDP last year. In this way, the target set by the government in the budget has been achieved. India wants to further bring it down to 5.9 per cent by the next financial year. Several reasons have been behind the decline in revenue deficit. Economic activity expanded more than expected. With this, the direct tax collection reached 16.61 lakh crore. This too was more than the estimate of 16.5 lakh crores.