connecting India economyaly, geographyl and culturaly? gd
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India’s economic success in recent years has helped to ensure that South Asia is the fastest-growing region in the world – but it faces significant challenges alongside its opportunities for further growth.
Ahead of the India Economic Summit 2017, taking place in New Delhi from 4-6 October, here are eight things you need to know to understand the current state of India’s economy.
Economic and population growth
India is the world’s seventh-largest economy, sitting between France and Italy. Its GDP growth recently dipped to 5.7%; still, India is growing faster than any other large economy except for China. By 2050, India’s economy is projected to be the world’s second-largest, behind only China.
India is home to 1.34 billion people – 18% of the world’s population. It will have overtaken China as the world’s most populous country by 2024. It has the world’s largest youth population, but isn’t yet fully capturing this potential demographic dividend – over 30% of India's youth are NEETs (not in employment, education or training), according to the OECD.
Image: Visual Capitalist
Some progress tackling corruption
The newly-published 2017 edition of the World Economic Forum’s Global Competitiveness Report finds that, once again, India’s executives consider corruption to be the most problematic factor they face when doing business within the country.
But it also shows that progress is being made. India again moves up the report’s rankings for the quality of institutions, continuing a recovery in this area that began in 2014 with the election of the Modi government. In particular, India now ranks an impressive 23rd among all countries in the Global Competitiveness Index for perceived efficiency of public spending.
Image: World Economic Forum
India’s 29 states are now a common market
Opportunities for corruption have long been created by the confusing patchwork of taxes across India’s 29 states, which also cause delays as goods cross state borders. In July, the system changed: a new goods and services tax means the 29 states are now a common market.