As a result of India's investment-led growth trajectory, several experts have produced an upbeat appraisal of the economy, resulting in the rapid rise of a USD 5 trillion GDP. The impressive performance of the Indian equity market isn't seen as an isolated incident, but rather as the start of a long-rising trend. In addition, China's weight in the MSCI Emerging Markets Index has decreased by 7 percentage points, compared to an increase of 5 percentage points for India, reported Asian Lite International.
But the Indian economy has surprised the globe in more areas than just the financial industry. The world is now aware of India's enormous economic potential thanks to the new Air India agreement with Boeing and Airbus. India's historically large order on the global market has established the principles of demand-driven growth.
The deal for more than 500 aircraft has several backward and forward connections that benefit both the Indian and global economies. The pact, hailed as a "historic agreement" by US President Joe Biden, is expected to generate over one million new employment in the US. Prime Minister Rishi Sunak of the UK appreciates the agreement since it would help the country's economy thrive and create jobs. Additionally, the agreement is expected to increase employment by more than 5000 jobs in the Indian aviation industry, which will benefit both the manufacturing and service sectors globally, read a report in Asian Lite International.
The agreement could give Air India a competitive advantage when offering air services around the world, especially given India's capital investment in new airport construction. Also, the pact advances the nation's aim of self-sufficiency. Through Air India's expansion, India hopes to compete with the Gulf airlines' hold on the aviation industry and break into the US and Australian markets.
According to Asian Lite International, one of many instances of India Inc.'s international expansion and its support to the advancement of the world economy is the Air India transaction. Indian businesses have followed globalisation methods during the past 20 years by opening up factories abroad, purchasing failing businesses, and expanding into newer regions in developed and developing markets. To name a few, these include industry behemoths like Bharat Forge, Asian Paints, Marico, Wipro, and Aurobindo Pharma. Not just the giants, but also the start-ups are rapidly expanding by buying businesses in both developed and emerging economies.
To expand their business, startups like OYO, BYJUs, and Zomato have purchased businesses in Amsterdam and the US. Why is India Inc. expanding internationally at such a rapid rate? The principles and lessons these businesses acquired while developing in a nation with resource and capacity limitations are the key to the solution. The lessons learned by Indian enterprises during their growth phase might be summed up as ECG - Efficiency, Consciousness, and Growth, to use a metaphorical notation.
First, corporations attain efficiency not through the Jugaad economy, for which India was infamously known, but rather by implementing creative and economical techniques that they have developed through time while expanding in India. Second, Indian businesses have been making adjustments to their operations, working environments, and HR regulations to reflect the values of inclusivity and sustainability. Companies such as Infosys, Taj Hotels, Kotak, Godrej, and Mahindra have committed to sustainable practices, ranging from switching from plastic bottles and straws to establishing sustainable business campuses.
Last but not least, the robustness of the Indian economy demonstrated by India Inc.'s unrestricted scaling up in local and foreign markets demonstrates the concord and synergy between corporates and the state.
The government's significant capital investment in infrastructure gives businesses opportunities to boost local and international growth and job creation. With this, a new age of economic globalisation and prosperity has begun, one made possible by India's and its corporate sectors' resilient and powerful growth, Asian Lite International reported.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor