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Key Reasons For India’s Growth

Since its independence India has shown tremendous economic growth. In spite of the depression of 1991, it managed to rise. Here’s a look at a few reasons that aided India’s growth

Make in India• With the new BJP led Govt coming into power since

2014, India has been given a boost to increase production in various sectors.

• Although they had the facilities and potential all these years, it untapped by the previous Govt.

• The Govt aims at increasing the GDP from 17% to 22% by 2022 simply through production and exports.

Good Governance• India witnessed a long period of low economic

growth.• Although the problem needs to be tackled at the grass

root level, BJP is attempting to create a favourable and attractive investment climate.

• With a clear majority and strong leadership skills, they are in a better position to take good decisions.

• With the new BJP led govt coming into the picture there is hope for a better tomorrow.

Consumerism • Demand and supply of products and services is

already rising in developed cities of India• However smaller towns and villages are still going

slow.• Instead of thinking of this as a drawback, we can

consider it to be positive since there is potential for more growth in the future.

Oil Prices• In the Budget, the Govt budgeted oil prices at $70,

however, with the current price of $58, companies save $12 a barrel on imports which leads to savings in Govt’s subsidiary bills.

• Lower oil prices also reduce inflationary risks due to which RBI can further reduce interest rates, which in turn encourages savings and investments and continues the flow of money in a sustainable economy.

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