INTHEBLACK February 2024 - Magazine - Page 39
Mujeeb Faruqui/Hindustan Times via Getty Images
Left: The control and
command centre of
Bhopal Smart City, in
Bhopal, Madhya
Pradesh, May 2018.
The project enables
authorities to monitor
the status of civic
amenities in real time,
using sensors.
“The reason I left India in the 1990s and went to the US was all about jobs,
money and other prospects. Now the trend is completely changing. People are
coming back to India from the US to work, to start a business and for many
other opportunities.”
ECONOMIC
SNAPSHOT
PRABA SANTHANAKRISHNAN, COOKR
6.7%
“Businesses also have cash that has been
kept as reserve funds.”
Mahesh adds that Indian businesses have
been proactive during the pandemic, exploring
opportunities to restructure and expand their
service lines, rather than pausing operations.
DIVERSE STRENGTHS
The Indian economy can count on many
strengths, including the stable leadership
of Prime Minister Narendra Modi, whose
approval rating of 78 per cent makes him one
of the most popular leaders in the world.
Under Modi, India has pushed infrastructure
development, with initiatives such as the
Smart Cities Mission, the Bharatmala Project,
and the National Infrastructure Pipeline,
which focus on improving logistics, road
networks and environmental sustainability.
Significantly, Modi’s government benefits
from a large and growing consumer market
with high disposable incomes that is fuelling
domestic consumption.
On the back of a young population – whose
median age is about 28 – the nation enjoys
the prospect of a dynamic workforce that can
support economic growth for decades to come.
This presents opportunities for domestic and
international investors in sectors such as retail,
fast-moving consumer goods and ecommerce.
Leigh Howard, CEO of University of
Melbourne’s Asialink Business, says it is
apparent that India’s “big domestic economic
growth engine” is a major asset. Investment
in infrastructure and the manufacturing
and energy sectors is also propelling the
country forward.
“The nation-building program is occurring
on several fronts, while India also has a highly
digital economy that is translating into a
strong ecommerce sector,” Howard says.
He expects India’s desire to prioritise the
education of its massive population to play into
opportunities for countries such as Australia.
Howard notes, for instance, that Deakin
University is the first foreign university to
establish an international teaching campus in
the Gujarat International Finance Tec-City
smart business district.
“That’s a massive breakthrough and
emblematic of the deepening relationship
across many sectors,” he says.
India’s projected GDP growth
for financial year 2024
4.9%
The forecast inflation rate
for financial year 2023,
slowing to 4.5% in 2024 as
inflationary pressures ease
2.2%
The predicted current
account deficit for 2023,
falling to 1.9% in 2024
Source: Asian Development Bank
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