The last decade witnessed major changes that had a far-reaching impact on the lives of every citizen in India. While some were criticized for the short-term complications that resulted, others were appreciated and welcomed wholeheartedly. Despite causing short-term inconveniences, most of them have the potential to deliver long-term outcomes and contribute significantly to making India a developed nation by 2047, in line with the vision of Prime Minister Narendra Modi.
1. GST Implementation
The implementation of the Goods and Service Tax on July 1 2017, changed the tax landscape in India. It not only reduced the cascading effects and thereby reduced the overall burden of taxes on goods and services but also simplified the tax regime of the country. This has significantly improved ease of doing business, and reduced tax evasion rate by enhancing transparency in taxation practice. GST introduction has proved to be a success for the Government as it has helped increase the amount of tax revenue collected by broadening the tax base. Moreover, it enabled the creation of a uniform national market, allowing for seamless movement of goods and services across state borders.
Slowing consumption hits #GST collections, with national growth lagging behind last fiscal year. Larger states, especially in South India, report subpar growth in H1 2024.
✍️ @SindhuHarih
Data story for @businessline
Read: https://t.co/3uuedm84jV pic.twitter.com/8mnWregqJV
— Data Stories from BusinessLine (@BL_DataStories) November 23, 20242. Digital India Initiative
Digital India Initiative is a programme that aims to transform the country into a digitally empowered society and knowledge economy. Launched on July 1, 2015, by the Ministry of Electronics & Information Technology, Digital Initiative has three key visions, namely enabling digital infrastructure, e-governance, and achieving digital empowerment of citizens. DigiLocker is a secure cloud-based platform that allows the storage, sharing, and verification of documents and certificates. Similarly, the use of technology has increased significantly in the agricultural sector. Kisan Sarthi portal, E-Nam portal, and Kisan Suvidha App are some of the notable Government initiatives undertaken to integrate the use of technology in agriculture.
A whopping 2,000+ Government services are available all on a single app- UMANG. Services on DigiLocker and myScheme can also be accessed on UMANG with ease. Click to know more: https://t.co/XT5iF0KhX8#UMANG #DigitalIndia #7Years7Crore @UmangOfficial_ pic.twitter.com/TbVBg4K9ap
— Digital India (@_DigitalIndia) November 23, 20243. Demonetization
In a sudden move, the Central Government, on November 8, 2016, announced the demonetisation of Rs. 500 and Rs. 1000 banknotes. Although the country had to face a severe cash shortage, which negatively impacted the informal sector and small business enterprises, there was indeed a silver lining. The adoption of digital payment gained momentum due to this sudden economic disruption. This has also led to the formalisation of the economy to a major extent.
4. Rise of Renewable Energy
India’s participation in the International Solar Alliance (ISA) along with other countries to accelerate the use of solar energy in every field is a testament to its commitment to the cause of the promotion of renewable energy. National Policy on Biofuels, adopted in 2018 by the Ministry of Petroleum and Natural Gas, is another such initiative. In addition to that, the country has invested heavily in the promotion and proliferation of electric vehicles. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) is a government subsidy program that is designed to achieve the desired goal.
5. Startup Boom
The country witnessed a boom in the startup ecosystem in recent years. A number of factors have resulted in the flourishing of the startup ecosystem, including encouraging government policies, a skilled bunch of enthusiastic entrepreneurs, a large consumer base, internet access and a growing pool of talented entrepreneurs. These startup initiatives have covered a wide range of sectors as diverse as technology, healthcare, e-commerce, fintech, education, renewable energy, and transportation, among others. In this context, the Central Government’s Production Linked Incentive (PLI) is particularly remarkable as it significantly boosts manufacturing in the country by offering lucrative incentives to the companies.
According to a press release by the Press Information Bureau (PIB), DPIIT recognizes 1,17,254 startups as of December 31 2023. Startup India Initiative launched on January 16, 2016, has supported entrepreneurs and enabled the establishment of a robust startup ecosystem with the aim to transform India into a country of job creators instead of job seekers. This initiative shows the Government’s sincerity in boosting the startup ambience in the country.
6. National Logistics Policy
Logistics is defined as the link that facilitates the uninterrupted functioning of the supply chain. It transportation and handling of goods between points of production and consumption along with storage, value addition and allied services. The logistics infrastructure essentially consists of nodes and connections such as ports, roads, railways, inland waterways, air routes, pipelines, stations, and Multimodal Logistics Parks (MMLPs), among others. For any country to succeed in business operations which is critical for boosting its economy, logistics prove indispensable. India, for the first time in 2022, came up with a National Logistics Policy. The key objectives of the National Logistics Policy are integration, optimisation, standardisation, modernisation,
formalisation and democratisation. PM Gati Shakti – National Master Plan for Multimodal Connectivity, part of larger logistics policy, aims to facilitate the last mile connectivity of infrastructure and to people.
7. Focus on Skill Development
The Government, in recent times, has focused on skilling individuals to reap the demographic dividend optimally. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which aims to skill-train youth across the country, is such an initiative. In addition to that, the National Apprenticeship Promotion Scheme (NAPS) is in existence, which promotes apprenticeship training and offers earning opportunities for apprentices as well as financial support to industrial establishments undertaking apprenticeship programmes.
8. Financial Inclusion
To ensure financial inclusion, the Government has undertaken a number of initiatives including the improvement of physical infrastructure and significantly expanding digital payment options. The National Payments Corporation of India (NPCI), owned and operated Unified Payment Interface (UPI), is an instant payment system that allows for peer-to-peer and person-to-merchant transactions between banks. The Government has promoted the UPI platform by giving subsidies and it has resulted in digital payment penetration in rural India. Besides, initiatives like Pradhan Mantri Jan-Dhan Yojana (PMJDY) for financial inclusion to ensure access to financial services, including banking services, insurance services, and pensions to every citizen of the country, are commendable steps towards the achievement of the goal.
9. Infrastructure Development
Infrastructure development is another key change that India witnessed in the last decade. The Sagarmala Project to develop the country’s coastal infrastructure, such as ports, waterways, and logistics and the Bharatmala project to improve roadway connectivity across the country are part of the tremendous improvement in infrastructure. Ude Desh ka Aam Naagrik (UDAN) scheme to improve regional aerial connectivity also contributes significantly to the country’s growth and development.
10. Changing Social Landscape
Modern India also witnessed significant improvement in the recognition of the rights of diverse gender minorities. The Supreme Court ruling in 2019, declaring Section 377 of the Indian Penal Code (IPC), which criminalized homosexuality as unconstitutional, is a landmark judgement and had been a cornerstone in recognition of LGBTQ+ Rights. As recently as in 2021, the Supreme Court allowed the entry of women into the National Defense Academy and criticized the Academy for violating the fundamental rights of citizens by debarring women from taking the exam so far.
FAQ
1. What is the significance of the Goods and Services Tax (GST) in India?
The GST revolutionized India’s tax system by unifying multiple taxes into a single one. This simplification reduced tax burden on businesses and consumers, fostered a unified national market, and improved ease of doing business.
2. How has the Digital India initiative transformed India?
Digital India aims to create a digitally empowered society. It has led to the widespread adoption of digital technologies, improved e-governance, and enhanced digital literacy. Initiatives like DigiLocker and e-agriculture platforms have significantly streamlined processes and empowered citizens.
3. What impact did demonetization have on India’s economy?
Demonetization aimed to curb black money and promote digital transactions. While it caused short-term disruptions, it accelerated the adoption of digital payments, and encouraged formalization of the economy.
4. How is India promoting renewable energy sources?
India is actively promoting renewable energy sources like solar and wind power. Initiatives like the International Solar Alliance and the National Policy on Biofuels aim to reduce dependence on fossil fuels and combat climate change.
5. What role has the government played in the rise of India’s startup ecosystem?
The government has implemented policies like Startup India to foster a conducive environment for startups. It provides funding, mentorship, and regulatory support to encourage innovation and job creation.
6. How has India improved its logistics infrastructure?
The National Logistics Policy aims to streamline logistics operations and reduce costs. Initiatives like PM Gati Shakti focus on multimodal connectivity, improving infrastructure, and enhancing efficiency.
7. What steps has India taken to promote skill development and financial inclusion?
The government has launched initiatives like PMKVY to skill the youth and create a skilled workforce. Additionally, programs like PMJDY aim to provide financial services to the underprivileged, promoting financial inclusion.
