In 2020-21, India obtained a report $ 81.72 billion in Foreign Direct Investment.
India enters its seventy fifth 12 months of Independence on August 15 this 12 months. In March 2021, the Government of India introduced Amrut Mahotsav a two-year-long nationwide initiative to commemorate the milestone. India’s financial journey since 1947 has seen its share of ups and downs. Once branded a “third world country” a time period for poor creating nation-states which has now fallen into disuse, India is now among the many greatest economies of the world. There’s nonetheless a protracted technique to go for India, although.
Here’s a have a look at India’s financial journey in 8 factors:
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Food Production: Achieving “self-sufficiency” in meals grains has been Independent India’s greatest achievement. From receiving meals help within the Nineteen Fifties and Sixties to changing into a web exporter, India has seen a turnaround in meals manufacturing. The complete meals manufacturing, which stood at 54.92 million tonnes in 1950, rose to 305.44 million tonnes in 2020-21.
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Gross Domestic Product (GDP): India’s GDP stood at Rs 2.7 lakh crore at Independence. 74 years on, it has reached Rs 135.13 lakh crore. India is now the sixth largest economic system on the earth and is on its technique to changing into the third-largest by 2031, as per Bank of America. An unmissable truth is that there was a 10- fold improve within the GDP (at fixed costs) because the reform course of started in 1991.
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US greenback to Rupee: Contrary to a well-liked 2013 ahead which had pegged US $1 to Rs 1, a US greenback was equal to Rs 3.30 in 1947. Notably, India’s rupee was pegged to the UK Pound Sterling, not the US Dollar. In August 2021, US $1 is the same as Rs 74.
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Forex: India’s foreign exchange reserves (In foreign currency echange and different belongings like gold) stood at a meagre Rs 1,029 crore in 1950-51. In truth, India’s low foreign exchange reserves performed the catalytical function in kickstarting the financial reforms. With simply $1.2 billion value of foreign exchange reserves in 1991, India simply had sufficient reserves to finance 3 weeks of imports. Three a long time because the reform course of started, India’s foreign exchange reserves now stand at Rs 46.17 lakh crore – the world’s fifth-largest.
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Indian Railways (route size): India already possessed one of many greatest railway traces within the early years of Independence. In Independent India, the Indian Railways has targeted on unifying all rail gauges, electrification of railway traces and connecting northeast India to the mainland. Moreover, the railway line has expanded by over 14,000 kilometres, reaching 67,956 kilometres in route size by 2020.
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Roadways (size): Roads have expanded exponentially within the final 75 years. In 1950, as per authorities figures, India solely had 0.4 million kilometres of roadways, which has grown to six.4 million kilometres in 2021. This is a 16-fold rise within the complete size of roadways, making India’s street community the second largest on the earth.
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Access to electrical energy (rural areas): Providing rural India with entry to electrical energy has been one of many objectives of India’s socio-economic policymaking. According to the Ministry of Power, solely 3,061 villages had entry to electrical energy in 1950. In 2018, the Indian authorities introduced that every one of India’s villages – 5,97,464 in complete – had been electrified. However, given the standards to declare a village electrified – 10 per cent of households in a village getting access to electrical energy, there are hundreds of thousands who nonetheless stay with out electrical energy.
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Foreign Direct Investment: In the pre-liberalised ‘license raj’ India, overseas funding was restricted if not non-existent. In 1948, the entire overseas funding in India stood at Rs 256 crore. However, because the 1991 liberalisation, FDI has develop into the buzzword of India’s financial story. In 2020-21, India obtained a report US$ 81.72 billion in Foreign Direct Investment.
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