It augers well to say that we are targeting to become a $3 trillion economy in FY20 and a $5 trillion economy in the next few years. The economic survey pegs the growth at 8%, which is a healthy outlook for the country.
My insights are restricted to three areas – Innovation, Electric Vehicle Incentives, and Manufacturing.
Innovations – Patents tripled in India
This clearly shows the government’s mission to foster local innovations to boost the economy. Most developed nations’ growth has been due to innovations and the strong patent protections that help them build a strong economy. India’s focus on innovation is likely to garner a position that will make our country stronger and not be dependent on imports. To establish a National Research Foundation to fund and develop a roadmap for research is a step in the right direction. Also, to get foreign students to study in India is a good thought that will improve the quality of higher education in the country.
Electric Vehicle Incentives
The government’s push for a clean and green environment will propel the industries across the value chain in the EV space. Manufacturers and material suppliers for this segment will greatly benefit as it will open the doors for innovation such as in light-weighting – focusing on alternate material, which is likely to bring significant cheer to various players (oil companies, tyre manufacturers, chemical companies, battery manufacturers, electronic component developers, communication companies, data analytics players, etc.). This will also aid in the creation of new jobs and increased public spending, thus building a stronger economy. At the same time, lowering the GST on EVs would aid in increasing the EV sales.
Manufacturing
The creation of a global hub to spur the manufacturing of batteries (Lithium Ion and other chemistries), semiconductor devices, storage technologies, etc., in India will assist in meeting the demands of the local economy and possibly boost exports to countries embracing alternate technologies.
The PPP model will contribute significantly towards modernizing the railways. With urbanization being one of the biggest mega trends, investment in building a suburban railway system will not only benefit the public but will also create jobs and increase manufacturing.
Top 5 – Expected Growth Drivers for 2019-20:
- Investment in waterways – which is expected to propel the logistics sector
- Innovations from India to make the country an innovation-based economy
- One Nation, One Grid – will ensure power is available to every citizen in the country
- Credit availability to the tune of ₹1.5 crore for the SMEs will boost the small scale sector
- Promotion of zero budget farming will enable better yield leveraging new technologies
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