THE BETTER INDIA

With the population of more than 1.2 billion, India is the world’s largest
democracy. Over the past decade, the country’s integration into the global
economy has been accompanied by economic growth. India has now emerged as
a global player.
Since the 2000s, India has made remarkable progress in reducing absolute
poverty. Between 2011 and 2015, more than 90 million people were lifted out of
extreme poverty.
However, the COVID-19 pandemic led India’s economy into a contraction of 7.3
percent in FY21, despite well-crafted fiscal and monetary policy support.
Following the deadly ‘second wave,’ growth in FY22 is expected to be nearer to
the lower bound of the range of 7.5 to 12.5 percent – still putting India among the
fastest growing economies in the world.

7 key developments in India

HISTORIC TAX REFORM

The Goods and Services Tax (GST) came into effect across India from 01 July 2017.
GST has turned all 36 states and union territories of India into one common
market. By curbing and cascading taxes, GST has also reduced the cost of local
production. The GST rate on more than 200 products has been reduced from 28%
to 18%. GST is expected to increase overall efficiency and productivity, thereby
attracting more foreign direct investment (FDI).

DIGITISATION DRIVE
Systems from taxation to incorporating a company are being moved online,
through e-governance. The Ministry of Corporate Affairs (MCA) has taken the
following major initiatives to deliver faster and clear processes towards Ease of
Doing Business and standardization: Introduction of web-based service Reserve
Unique Name (RUN) for making the name reservation process quick and easy.
NEW INSOLVENCY CODE
The Insolvency and Bankruptcy Code 2016 (enacted on 28 May 2016) is designed
to promote entrepreneurship—it enables companies to tide over financial
difficulties and opt for restructuring while fulfilling orders at the same time. It also
promotes greater confidence among investors and increases credit availability, by
strengthening procedures. By 2017, more than 2,050 more than insolvency
applications have been admitted. The code has helped India improve the Ease of
Doing Business. India moved up 33 ranks in the Resolving Insolvency indicator of
the World Bank’s Doing Business Report in 2017.

INSTITUTIONAL REFORMS
A social revolution is coming up in India under the moniker JAM: Jan Dhan Yojana
for financial inclusion, Aadhaar biometric identification and mobile telecom As of
February 2019, the number of Aadhaar cards assigned to the total population is
1.52 billion. The Prime Minister’s Jan Dhan Yojana (PMJDY) is a financial inclusion
programme that makes services like banking, remittance and insurance available
to every Indian at an affordable cost.

INFRASTRUCTURE PUSH
With the announcement of a 35.4 per cent increase in public capital investment,
the Union Budget 2022-23 has laid down the path for a capex driven growth
during India's Amrutkaal (i.e., the 25-year long period leading up to the 100th
anniversary of Indian independence).

The increase in capex, which has been stepped up from nearly Rs 5.54 lakh crore
last year to around Rs 7.50 lakh crore in this year's Budget, is 2.2 times more than
the spend of FY 2019-20 and will account for 2.9% of India's GDP.

TECHNOLOGY READINESS
  On June 28, 2021, DRDO tested a nuclear-capable ballistic missile ‘Agni P’
with range capability of 1,000-2,000 kms.

 In June 2021, DRDO developed an anti-drone technology to detect and

neutralize unmanned aerial vehicles. This technology uses radar system
that offers 360-degree coverage.

 In August 2021, the central government approved Deep Ocean Mission

(DOM), which will be implemented by the Ministry of Earth Sciences at a
total budget of Rs. 4,077 crore (US$ 548.54 million) for fi In September
2021, India published the amended Patents Rules (2021) and reduced fees
by 80% for educational institutions.

 In September 2021, India published the amended Patents Rules (2021) and
reduced fees by 80% for educational institutions.

 In November 2021, Atal Innovation Mission and Vigyan Prasar collaborated

to drive synergies between Atal Tinkering Labs and Vigyan Prasar’s unique
platform, Engage with Science.

 In November 2021, the Ministry of Science and Technology and Ministry of

Earth Sciences, in association with Vijnana Bharati (VIBHA), launched India
International Science Festival 2021, a unique platform, with its theme being
celebration of creativity in science, technology and innovation for a
prosperous India.

RENEWABLE ENERGY
Globally, India is number fifth for overall installed renewable energy capacity,
fourth for wind power and fifth for solar power.1 As of 2018, solar energy projects
capable of producing 22 GW have been installed in the country. More than 100 bn
units of electricity have been generated in 2017 using renewable energy. 2 The
Government of India has set a target to install 175 GW renewable power capacity
by the end of 2022. This includes 60 GW from wind power, 100 GW from solar
power, 10 GW from biomass power and 5 GW from small hydropower.

To build back better, it will be essential for India to stay focused on reducing
inequality, even as it implements growth-oriented reforms to get the economy
back on track. The World Bank is partnering with the government in this effort by
helping strengthen policies, institutions, and investments to create a better future
for the country and the people through green, resilient an inclusive development.