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Seven Indicators That Vouch for India’s Strong Economy in Recent Times

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With India registering 7.7% GDP growth in Q4, the tag of world’s fastest growing major economy has remained intact. This should answer all the skepticism raised by certain quarters in recent times. In fact, there have been many validations of Indian economy’s good health from time to time at global stage. Let’s look at those instances where India’s upward journey in terms of economic progress has been evident.

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Ease of Doing Business

India was at 142nd rank in World Bank’s ‘Ease of Doing Business’ ranking in 2014. In 2018 report, it made a historical progress in the ranking by securing 100th place in the ranking. As the phrase itself suggests, improving the rank in this index does necessarily mean that the business atmosphere in the country is in good shape. This reflects the investors confidence in Indian economy. It needs to be noted here that CEO of the World Bank while complimenting India on its performance in the Doing Business Report, attributed its success to the government’s resolve to make difficult decisions that have translated into remarkable progress.

Moody’s Upgrade of Sovereign Credit Rating

In 2017, Global rating agency Moody’s Investors Service upgraded India’s sovereign rating to Baa2 from Baa3. This also an event boosting investors confidence on India. India’s ratings have been upgraded for the first time in almost 14 years which means in the decade-long tenure of the last administration, India did not merit a ratings upgrade.

FDI Report

According to FDI (Foreign Direct Investment) report 2017 by FDI Intelligence, a division of The Financial Times Ltd, India has maintained its number one position of being the world’s top most greenfield FDI investment destination. It has emerged as the most favoured greenfield FDI destination in 2015. From $24 billion greenfield FDI in 2014 to $62.3 billion in 2016, the growth has been evident here.

Global Competitiveness Index

In World Economic Forum’s (WEF) Global Competitiveness Index, India was at 71st rank in 2014. At that time WEF had reportedly observed that, “The country’s new government faces the challenge of improving competitiveness and reviving the economy, which is growing at half the rate of 2010”. Just after 3 years, India secured itself 40th rank in the index. In fact, in 2016 India had climbed 16 places to improve its ranking. Since the Index takes into account of infrastructure, higher education and training, technological readiness reflecting recent public investments in these areas, this index reflects the health of a major portion of economy.

Travel and Tourism Competitiveness Report

Travel and tourism is not only an important revenue source for the government but the sector also reflects the confidence of world on this country. In 2013, out of 140 countries in the list of ‘Travel and Tourism Competitiveness Report’ of WEF, India was at 65th rank. In 2017 India has improved its ranking and spotted at the 40th place out of 136 countries.

World Bank’s Logistics Performance Index

Logistic Performance Index reflects the improvement in infrastructure, growth of industry, technological improvements and skilled professionals in the system. World Bank’s last Logistics Performance Index report was out in 2016. Among 160 countries, India’s ranking has jumped from 54 in 2014 to 35 in 2016.

Global Innovation Index

India has moved up six places from 66th place in 2016 to 60th among 130 nations on the Global Innovation Index 2017. In 2014, India was ranked at 76. This essentially means India’s capability in innovation and creativity have been increased substantially which in turn contribute to economy.

 

Thus, these indicators have been evidently making it clear that the Indian economy is indeed doing well and getting stronger in the recent four years.

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