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Reasons Why The Indian Economy Is Fastest Growing Economy In Fiscal Year 22-23

The world economy is comparatively more stable than what the economists expected and feared. This brings out a sense of security and contentment in the panicked individuals. Now, the predictions for any future recessions are said to be mild and less harmful. This brings out hope for better economic improvement in the future. 

Talking about economic improvements, India is one of the countries that have been in the news for its very recent overtake of the United Kingdom as the fifth-largest economic success. India became one of the top 10 economies in the world in the year 2014. As the growth of the Indian economy continued at a refined rate, it positioned India as the 6th largest economy in the year 2019. 

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India’s Economic Ranking 

It was in December 2021 that India projected a share of the Gross Domestic Product as 3.5% of the total share of the global economy. This crossed-out The United Kingdom, which contributed to 3.3% of the GDP. Thus, currently is the fifth-largest economy according to the global rankings. 

Moving on to further developments, they predicted India to overtake Germany by the year 2027, with a share of 4.1% of the total global economy, and Japan by the year 2029. This would lead the country to be positioned as the third-largest economic share in the world. 

The Fiscal Year 2022-2023 For India’s Growth

According to the predictions, the Indian economy is to be the fastest growing in the fiscal year 22-23. A Fiscal year 22- 23 refers to the beginning of the financial year, which commences from April 1, 2022, to March 31, 2023. Usually, we divide a financial year into 4 quarters called: – Q1 (April-June), Q2 (July-September), Q3 (October-December), and Q4 (January-March). 

The SBI research team released the eco wrap report for the Q1 FY22-23 on 3rd September 2022. The report suggests that the growth rate of India’s GDP has shown to be around 13.5% in Q1. This has been the fastest growth rate for the year. This high growth rate contributed to India’s status as they predicted the ‘fastest-growing economy.’ 

Analysts at Morgan Stanley predict India’s GDP growth at the rate of an average of 7% in the fiscal year 22-23. The rate of growth is one of the fastest in recent economic times, which gives higher credibility to the statement. 

Growth of Indian Start-ups During The COVID-19 Pandemic

The growth of Indian startups played a major role in contributing to the net annual improvement of the country, greater infrastructural development in the country, and additional employment opportunities for the youth. The Indian startup ecosystem created an improvement in the landscape of entrepreneurship in India and acquired an interest in additional foreign financial input in India.  

India has shown incredible growth in recognized startups across the country. The number of Indian start-ups in 2016 was 471. Recent statistics show the number of well-recognized Indian startups to be 72,993. This is a massive increase in the number of startups in India. This has been possible due to the increasing availability of resources for the innovators, ease of financial accumulation, and overall encouragement of finding an independent lifestyle in the business world. 

It is pretty clear that India has an abundance of potentially knowledgeable youth. It is an essential decision to cultivate higher facilities and availability of resources for the same. Only then it can lead to higher structural development. Recognizing the same information, India presented the opportunity for higher startup growth through the Startup India Initiative

The Start-up India Initiative 

The Indian government launched the ‘Start-up India Initiative’, in the month of January 2016. They launched the initiative with the idea of increasing encouragement and resource generation strategies for facilitating the growth of the startup ecosystem in India. The aim as described for the initiative was to create a country that is capable of accumulating employment opportunities for the potential resource. 

They recognized the key points of the initiative as generating easier access to financial resources for the creators, enhancing the existing patent application system to approve at a faster rate, provision of legal aids, accumulating informational resources for the creators, and accumulating the potential creators through competitions, events and providing easier access to scientific facilities if required. 

The initiative recognizes a range of various schemes launched to encourage the growth of startups. These include the Startup India Seed Fund: Under this scheme, the government plans to provide financial assistance to startups for the developmental stages. This is beneficial as the initial stage of the business is the most difficult one and most of the time may not gain sufficient attention from an investor. So, it provided initial funding to the business owners, enough so that they can develop a commercially viable product. 

It is as a result of such efforts that the investors recognize the Indian start-up ecosystem as one of the most prominent ones across the globe. 

Top Indian Start-ups Recognized Across The World

Zomato

This is one of the most used applications when it comes to an online food delivery system. Deepinder Goyal and Pankaj Chaddah were the ones to launch the application, which allowed the services of food delivery to different locations, from numerous restaurants. 

Both founders of the start-up were students from IIT Delhi, who met when they were working as professional employees of Bain Consulting. They recognized the difficulties faced in ordering food through their delivery services. The idea was to perform as a common surface for the connection between restaurants and their customers, allowing increased ordering of food with greater ease. Currently, Zomato is available in 24 different countries, hailing the status of a successful Indian startup. 

Nykaa

Falguni Nayar came up with the ideation of an online platform for fulfilling the cosmetic requirements of the customer. She brought up ‘Nykaa’ to the market in April 2012. Investing her own assets as initial capital for the start-up, she created the company which revolutionized the Indian cosmetic market. 

They designed the business structure of Nykaa in a unique way, which included an inventory-based system. In the system, customers can directly purchase the required items from different distributors, which are then delivered by Nykaa. This is unique from the existing platforms, in such a way that allows Nykaa a more excellent hold on the products. 

Cult.Fit

Mukesh Bansal and Ankit Nagori, who earlier worked at Myntra and Flipkart, respectively, started the foundation of building a health and wellness center. The idea was able to gain the attention of investors even before the creation of the online application. They chose the health and wellness sector as they recognized that people only increased their health potential in case of a chronic threat. The idea was to make the fitness facilities available more easily to encourage more people into health programs. 

They built an online application for the same after the success of the fitness centers in 2017. During the COVID-19 pandemic, they were the ones who shifted to an online platform, brought in the necessary changes to cope with the situation, and added mental health wellness programs as well as the availability of healthy food resources. 

These ideations and economic policies allowed the Indian economy to be comparatively stable and achieve a higher growth rate.

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