Over the years, India has emerged as one of the fastest-growing economies in the world and an attractive investment destination driven by economic reforms and a large consumption base. India’s gross domestic product (GDP) at current prices in 2021-22 is estimated to be Rs. 236.44 lakh crore (US$ 3.05 trillion), as against Rs. 198.01 lakh crore (US$ 2.56 trillion) in 2020-21, showing a growth rate of 19.4%.
In a country like India, the seven major infrastructural factors that are most significant in accelerating the pace of economic development are: energy, transport, irrigation, finance, communication, education, and health. The first five refer to economic infrastructural facilities, while the latter two relate to social infrastructure.
India has the second-largest road network in the world, spanning over 6.38 million kilometers (kms).
With a generation of 1,557 terawatt-hours (TWh) in 2020, India is the third-largest producer and the third-largest consumer of electricity in the world. As of March 31, 2022, India had a total installed power-generation capacity of 399,496.61 MW, of which 99,004.93 MW was contributed by central utilities, 104,854.98 MW by state utilities, and 195,636.71 MW by private utilities.
The Indian banking system consists of 12 public sector banks, 21 private sector banks, 44 foreign banks, 43 regional rural banks, around 1,470 urban cooperative banks and 97,006 rural cooperative banks, in addition to cooperative credit institutions. As of January 2022, the number of ATMs (on and off-site) in India increased to 2.19 lakh, compared with 2.17 lakh ATMs in December 2021. According to the Reserve Bank of India, in January 2022, the total debit cards in circulation stood at 940.93 million, while credit cards in circulation stood at 70.25 million.
A host of factors has enabled this growth, which includes a highly developed financial system, infrastructure requirement and proactive Government initiatives. Domestic and foreign investment has made an impact on the country’s growth.
India is presently known as one of the most important players in the global economic landscape. The country is growing rapidly and is expected to become a US$ 5 trillion economy by 2025.
The Union Budget presented on 1st February by Finance Minister Nirmala Sitharaman highlighted the policies and investment incentives to look forward to in the next year:
Note: Conversion rate used for February 2022 is Rs. 1 = US$ 0.013