India’s leaders and business community are making a big push to build a global business empire, while China is trying to catch up by creating its own version.
The government has launched the world’s first government-owned carrier to offer affordable and reliable connectivity, but the world has not yet caught up.
As a result, the Indian economy, which was supposed to be growing at 7.5% in the fourth quarter of 2016-17, is slowing down.
India is in the midst of a $1.5 trillion debt crisis, and the government is struggling to borrow enough to prop up its faltering economy.
While the country has been expanding its economy by increasing the number of jobs, many of them precarious, to more than 60 million people, it is still lagging behind China in terms of real wages and social mobility.
The growth rate of India’s gross domestic product (GDP) has stalled at around 7% for two years in a row, with the economy’s growth rate slowing to a crawl.
India’s main challenges include stagnant wages and a lack of social mobility, especially among the poor.
But there is hope, with an estimated $4 trillion of foreign direct investment (FDI) to be invested in India over the next decade, according to a new report by The Hindu.
India’s new minister for digitalisation and IT, Jitendra Singh, has made it a priority to invest in infrastructure.
In fact, this is the first time in a long time that the country is investing in its digital economy, said Anuj Kumar, co-founder and CEO of Tech India, a business incubator that helps startups and small businesses in the country.
“The infrastructure investment will create a whole new ecosystem in the business and will bring about an economic uplift,” he said.
Singh has set up an ambitious digital strategy, with investments in infrastructure like broadband, mobile and e-governance to boost the country’s digital economy.
But the government will need to address a huge number of challenges.
One of the most pressing problems, said Kumar, is that India is currently experiencing a severe drought.
“The drought is a real concern, and it’s not going to be solved overnight,” Kumar said.
India has experienced its worst drought in the past two decades.
The country is struggling with water scarcity due to high levels of CO2, which the government has set as its target to cut by 40% by 2030.
The country’s population of about 3.4 billion is about 30% below the pre-drought level.
And the number and size of farmers in the state of Punjab is shrinking rapidly.
The government is spending around $2 billion to support the agriculture sector, while the government also has a $250 billion loan guarantee program.
And on top of that, the government recently announced a $300 million loan to a microfinance company called India’s First, which is helping to fund small-scale businesses.
The plan is to make sure the economy is resilient and sustainable, and this is exactly what the government wants to do.
“This is a huge opportunity to grow our economy,” Singh said, adding that the government hopes to attract foreign investment in the sector, especially in the coming years.