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SPECIAL WRITE-UP THE CHARTERED ACCOUNTANT

India’s Rise to Global Leadership –

Agenda for Growth
The post-COVID world order is defined by a disruption in
traditional pathways of growth, urging countries around
the world to reflect on their own growth trajectories and
rethink systems of old. India finds itself in a historic
era witnessing a paradigm shift to a multipolar world
and a global economy establishing its locus in Asia. In
this transforming global discourse, India is prioritising
economic growth using a human-centric model to
build an inclusive, sustainable and green growth story.
Amitabh Kant
Challenges lie ahead, as India must tackle multiple
India’s Sherpa to G-20 and Former
CEO of NITI Aayog. hurdles at the same time.

T
he post-COVID world
order is defined by a
disruption in traditional
pathways of growth, urging
countries around the world
to reflect on their own
growth trajectories and
rethink systems of old. India
finds itself in a historic era
witnessing a paradigm shift
to a multipolar world and a
global economy establishing
its locus in Asia. In this
transforming global discourse,
India is prioritising economic
growth using a human-centric
model to build an inclusive,
sustainable and green growth
story. Challenges lie ahead,
as India must tackle multiple
hurdles at the same time.
While most developed nations
were faced with the question
of decarbonization long
after industrialization, India’s
multipronged approach aims
to address industrializing
and decarbonizing the nation
simultaneously. India’s
Aatmanirbhar vision coupled
with the Hon’ble Prime
Minister’s Panchamrit (or Five
Elements) Climate Pledge are
emblematic of India’s deep
commitment to this alternate
vision of growth. This is an
interdependent world where
globalisation through land,
the seas and technology,
ensures that individuals and
countries rely on each other
on an everyday basis. India’s
approach must be inward as
well as external facing. The
country’s economic future
should strive to prioritise its
people’s needs while ensuring
that it becomes a voice for the
Global South – leaving no one
behind.
When India took over G20
presidency last year, it gained
center stage among the 4.6
billion citizens of G20 member
nations. India’s G20 presidency
is a watershed moment in time
as it provides unparalleled
opportunity to showcase to
the world India’s cultural and
business heritage and its true
potential to become a defining
force in the global economic
order.
Fifth now, soon to be third
The Indian economy continues
to witness impressive growth.
In the current fiscal year, the
Government of India has
India’s multipronged
approach aims to
address industrializing
and decarbonizing the
nation simultaneously.
India’s Aatmanirbhar
vision coupled with the
Hon’ble Prime Minister’s
Panchamrit (or Five
Elements) Climate Pledge
are emblematic of India’s
deep commitment to this
alternate vision of
growth.

34 JULY 2023 www.icai.org


THE CHARTERED ACCOUNTANT
also put special emphasis
on building robust capital
expenditure for building
infrastructure that creates
new jobs, promotes private
consumption and further
boosts the economy. With a
$122 billion outlay for building
roads, highways, and first-
and last-mile transport, the
government aims to set India
the stage for a New India,
well on its path to become
a $5 trillion economy. India
is currently the fifth largest
growing economy in the world,
soon to be the third largest
after surpassing Japan.
India’s economic growth
surpassed expectations when
the real GDP grew at 6.1%
in Q4 FY23. International
Monetary Fund (IMF) in its
World Economic Outlook in
April 2023, projected that the
Indian economy will grow by
5.9 per cent in FY23, making it
the fastest-growing economy
in the world. The lift in the last
quarter has been the strongest
in Asia, and displays resilience
in a post-pandemic economy
which was ridden with trade
and geopolitical shocks.
India’s economy is pegged to
grow at a rate higher than 7%
annually, driven by information
technology, manufacturing, and
agriculture sectors. Structural
reforms such as the Goods
and Services Tax (GST), Real
Estate Regulatory Authority
(RERA) Act and the Insolvency
and Bankruptcy Code (IBC)
have played a huge role in
this growth. This has solidified
India’s status as a bright spot in
the global economy.
While India has experienced
significant growth in its economy
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in recent years, this growth has
not been evenly distributed, with
much room for improvement
in terms of per capita income.
Yet, India’s demographic
dividend also provides a unique
demographic advantage. Having
surpassed China in terms of
population, India is now the
biggest producer of human
resources in the entire world.
By 2030, India will have over 1
billion citizens in the working
age group, and the country can
leverage its vast talent pool to
ensure a bright future for its
economy on the global stage.
India as the world’s
manufacturing and export
hub
For a nation’s sustainable
growth, exports need to
move northside for a long
period of time. In India we are
witnessing an annual growth
of 7 to 8 percent, a far more
recent phenomenon for India
than in many other countries.
Maintaining this trend over
decades requires huge exports
which would not only provide
economies of scale but also
help in correcting India’s
balance of payment. Therefore,
the idea behind introducing
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SPECIAL WRITE-UP
Production Linked Incentive
(PLI) for manufacturers is to
aim big. For a growing exports
sector, it is imperative for
MSMEs to work in tandem with
large entities.
Every challenge presents a
window of opportunity. When
the world has faced adversarial
conditions, India has risen up to
the challenge and built people-
centric solutions. The whole
world watched as India became
a global supplier of COVID-19
vaccines during the peak of the
pandemic. Sooner rather than
later, India will become a global
supplier of semiconductors.
Semiconductors have brought
the global automobile sector on
its knees. India has announced
more than $10 trillion in
central and state subsidies,
With a $122 billion
outlay for building
roads, highways,
and first- and last-
mile transport, the
government aims to set
India the stage for a New
India, well on its path to
become a $5 trillion
economy.
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SPECIAL WRITE-UP
along with other incentives,
to attract semiconductor
manufacturing. When it comes
to manufacturing, it would be
ideal to have large companies
that can cater to global needs
while handholding MSMEs
through their operations.
Investments in India’s green
energy sector is a major
push for India’s emerging
manufacturing aspirations
with green growth. Bank of
America estimates the green
investments to reach as much
as $800 billion over the next
decade where the renewable
energy sector may attract
around $250 billion, while
batteries garnering $250 billion
along with grid infrastructure
and other areas such as green
hydrogen and equipment
receiving $300 billion in total
investments. India’s recently
announced National Green
Hydrogen Mission, also aims
to make India an export hub
for green hydrogen and its
derivatives. India with its unique
climatic advantage, high-skill
workforce and government
support can lower the cost
of producing green hydrogen
36 JULY 2023
from the present rate of $4.5/
kg to $1/kg. India’s green
hydrogen ambitions shall also
aim to support development
of robust electrolysers supply
chains and manufacturing
capabilities, enabling not just
export of green hydrogen and
its derivatives, but also modular
electrolysers systems and
balance of plant components
globally.
India’s success in
manufacturing will also
be determined by its
competitiveness in the
export market. The country’s
increasing focus on exports
will help solidify its position
in the global value chain. This
specifically applies to India’s
agricultural sector which
recorded the highest-ever
amount of $50.21 billion worth
of agricultural and processed
food product exports in FY
2021-2022. The booming
agricultural export sector is
backed by several initiatives
led by the central government.
The Farmer Connect Portal
is run by the Agricultural and
Processed Food Products
Export Development Authority
THE CHARTERED ACCOUNTANT
(APEDA) and provides a digital
platform to integrate farmer
and aggregator activities
while enabling their easy
and direct interaction with
exporters. The One District One
Product – District as Export
Hub (ODOP-DEH) initiative
has further identified products
from 765 districts of India to
push newly identified business
products to manufacture
at-scale and export in the
international market. Other
schemes such as the Mission
for Integrated Development of
Horticulture and the National
Food Security Mission are
supporting holistic farming
practices, while the Department
of Agriculture and Farmers’
Welfare is implementing
several campaigns using mass
media and social media to
raise awareness on modern
agricultural techniques.
For India to become a leader
in export, the country needs to
adopt a future-forward outlook
regarding agricultural exports.
India is a major exporter of
rice, sugar and wheat, with
rice being the agricultural
product exported in the highest
quantities from India. This leaves
great potential for millets –
India’s very own ancient nutri-
cereal – to be included in India’s
agricultural export mix. Millets
are nutrient-dense and require
much less water. India needs to
India’s recently
announced National
Green Hydrogen Mission,
also aims to make India
an export hub for green
hydrogen and its
derivatives.
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THE CHARTERED ACCOUNTANT
exponentially expand production
and export of millets and phase
out rice and wheat. This way
India can help meet the growing
global demand for this superfood
while also promoting sustainable
farming practices and unlocking
the benefits of an untapped
and largely ignored agriculture
product.
All things tech
India’s digital transformation
is a major component of
India’s agenda for growth. The
large-scale digital intervention
and digital service platform
demonstrated by India has
not been witnessed anywhere
else in the world. The country’s
manufacturing story would be a
half-story without mentioning the
role of digitisation, an area that
the government heavily invested
in during the pandemic. When
social distancing became the
norm, digital services platforms
such as Aadhar, DigiLocker,
Jan Dhan Yojana, Air Suvidha
and CoWIN, helped millions
across the nation access an
array of services in the palm of
their hand. This digital public
infrastructure (DPI) established
by the government has helped
India leapfrog over forty years of
development.
The innovation ecosystem
of India has become the
backbone of economic
growth and technological
development in the recent
years. India has established
India’s digital
transformation is
a major component of
India’s agenda for
growth.
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itself as the Startup Capital of
the World. The Government of
India’s Startup India initiative
has played a tremendous
role in acknowledging the
value and potential of India’s
booming entrepreneurial scene.
Recognition by the Department
for Promotion of Industry
and Internal Trade (DPITT)
provides a host of benefits
to entrepreneurs such as tax
benefits, smoother compliance,
easier public procurement
norms and much more. Over
the next few decades, India’s
growth story will be defined by
the four pillars of technology,
artificial intelligence, machine
learning and data. We can bring
solutions using AI and ML for
not just its citizens but also for
the rest of the world. India is
well on its way to developing
startups with promising
business ideas into new-age
companies that build a global
consumer base.
India’s demographic advantage,
technical workforce, digital
transformation and business-
friendly policies and schemes
strongly position India to
soon become the third largest
economy in the world. In a
volatile world, India’s growth
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SPECIAL WRITE-UP
agenda includes green growth,
sustainable development,
domestic production and
manufacturing, global exports,
greater focus on innovation and
R&D and far greater involvement
of the private sector for green
financing.
To make India’s growth trajectory
truly inclusive, we must build
more gender-inclusive policies
and business practices that
encourage India’s women
population to become equal
participants and stakeholders in
the growing economy. Women-
led development is the only way
forward if India wants to become
a $5 trillion economy. While India
is carving a unique pathway
to industrialization, it must
also aim to build an alternate
global supply chain base. Our
resources strongly position us
to lead this alternative supply
chain over the next 10-30 years,
but we cannot do it alone. India
must leverage its position on the
global stage for collaborations
and partnerships that help this
nation lead the world into a post-
modern economic global order.

Author may be reached at
eboard@icai.in
JULY 2023 37