India has undergone a significant economic turnaround, shedding the ‘Fragile Five’ label it was tagged with in 2013. A recent report highlighted the country’s shift towards self-reliance and becoming a global growth engine. Key factors contributing to this transformation include banking reforms, emphasis on silicon hardware, and advancements in domestic technology development.
The report pointed out that India’s public capital expenditure plan amounting to Rs 12.22 lakh crore played a crucial role in transitioning the nation from a passive technology consumer to a sovereign architect of its own destiny. Notably, the Gross NPA ratio has dropped to a multi-decade low of 2.5%, with net NPAs reduced to a mere 0.6%.
Furthermore, the report mentioned that reckless corporate lending practices in the past burdened public banks with substantial stressed credit. By 2018, the Gross Non-Performing Asset (NPA) ratio had peaked at a concerning 11.18%. To address this, the government infused Rs 3.10 lakh crore of taxpayer capital into public sector banks between 2015 and 2021, while initiatives like the Insolvency and Bankruptcy Code (IBC) aided banks in cleaning up their balance sheets.
The report also commended the government’s efforts in implementing production-linked incentives and measures promoting digital sovereignty, which bolstered India’s macroeconomic resilience and technological capabilities. Noteworthy achievements include India’s emergence as the world’s second-largest mobile exporter, with exports surpassing $28 billion, thanks to the Rs 1.97 lakh crore Production Linked Incentive (PLI) scheme.
In a significant development, Tata Electronics is constructing a mega-fab worth $11 billion in Dholera, Gujarat, in collaboration with global chip experts. This facility, equipped with advanced ASML lithography equipment, is expected to significantly reduce India’s front-end chip imports upon completion. Additionally, India’s production of Vande Bharat trains at half the cost of imported models, featuring 75-80% indigenous components, has been highlighted as a major achievement.
Moreover, the report mentioned milestones in India’s space sector, such as the launch of Skyroot’s first private rocket in 2022 and the upcoming maiden flight of its commercial orbital launch vehicle, Vikram-1. These endeavors aim to capture a share of the global $25 billion small-satellite launch market, showcasing India’s growing prowess in space technology.
