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India’s Resilience: A Zero Percent Chance of Recession

Animesh Pandey by Animesh Pandey
29 May 2023
in Economy
Vada Pav is Just the Tip of the Iceberg: A look into the rich culinary delights of Maharashtra
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As the global economy grapples with recessions and uncertainties, India stands apart as a country with a remarkable distinction—a zero percent chance of recession. Like what happened in 2008, India is once again on the cusp of leading the world out of economic darkness, and this time, there is no appeasement and crypto communist policies to play spoilsport.

Now, let’s analyze the factors that contribute to India’s economic resilience, including the Dual Circulation Policy, self-sufficiency in essential resources, the perils of over-dependence on exports, the impact of historical invasions and socialism, and the entrepreneurial spirit that defines India’s economic potential.

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Going Back to Basics: The Dual Circulation Policy

One of the key reasons behind India’s resilience is the adoption of the Dual Circulation Policy, which emphasizes consuming what is manufactured domestically and manufacturing what is consumed. By focusing on self-reliance and reducing dependence on imports, India has created a robust foundation for economic stability. This policy promotes local industries, boosts employment, and stimulates domestic consumption, leading to sustained economic growth.

India has strategically prioritized self-sufficiency in essential resources, such as food and electricity. Unlike many other countries, India has never been overly dependent on external sources for these critical needs. Except for some high-tech stuff, we are almost self-sufficient in producing everything, if not being the export players in the same. By prioritizing agriculture and investing in energy infrastructure, India has ensured a reliable supply of food and power, reducing vulnerability to external shocks and fluctuations in global markets.

Also read: Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

Learning from China’s Errors

A comparison with China highlights the perils of over-dependence on exports. China’s heavy reliance on exports made it particularly vulnerable during the COVID-19 pandemic when global trade faced disruptions. In contrast, India’s diversified economy and focus on domestic consumption provided a buffer against the adverse effects of reduced international trade. This diversification shielded India from the worst impacts of the pandemic-induced economic downturn.

India’s experience demonstrates the importance of diversification and avoiding over-reliance on a single sector or strategy. China’s overemphasis on imitation policies and attempts to replicate success in specific industries left it vulnerable to economic shocks. In contrast, India’s diversified economy and emphasis on innovation and entrepreneurship have fostered resilience and adaptability.

The economic policies of Bangladesh, while ambitious, may not be easy to replicate for India. Bangladesh’s focus on garment exports and reliance on a few key industries carries inherent risks. India’s diversified economic landscape and focus on multiple sectors provide stability and reduce vulnerability to external factors.

Also read: 5 Most Valued Startups in India: A Journey of Innovation and Growth 

India as a Civilizational State

India’s identity as a civilizational state brings inherent advantages to its economy. With a rich cultural heritage, India has a deep-rooted entrepreneurial spirit that has historically driven economic growth. By embracing and celebrating its diverse traditions and cultural heritage, India fosters an environment conducive to innovation, creativity, and economic progress. Need we tell you why we were given the moniker of “The Golden Bird?”

India’s economic spirit has faced significant challenges throughout history. Multiple invasions and foreign dominations disrupted indigenous industries and stifled entrepreneurship. Furthermore, the Fabian socialism approach adopted post-independence further hindered economic growth. However, India has emerged resilient, learning from past mistakes and embracing a more market-oriented approach.

The Legacy of British Colonialism and Socialism post-independence

Britain’s colonial rule had a lasting impact on India’s economic landscape, crushing indigenous industries and creating dependence on the colonial power. India’s subsequent struggle for independence and efforts to rebuild its economy required significant perseverance and reinvention. It wasn’t until 1991 when India was liberated economically, with a message to entrepreneurs that they too have a say in the nation’s affairs.

No wonder why The Make in India initiative symbolizes India’s commitment to economic self-reliance and revitalizing its manufacturing sector. By encouraging local production, fostering entrepreneurship, and showcasing India’s strengths, the initiative aims to position India as a global manufacturing hub. Make in India is not just a new concept; it is an affirmation of India’s rich heritage and the pride in its own roots.

Also read: India’s startup growth: A tale told by data

As such, India’s zero percent chance of recession amidst global uncertainties is a testament to its resilience and economic policies. By focusing on self-reliance, diversification, and a vibrant entrepreneurial spirit, India has created a strong foundation for sustainable economic growth. Learning from historical challenges and embracing its cultural heritage, India continues to evolve and navigate global economic dynamics. As India moves forward, it is essential to celebrate its unique strengths, foster innovation, and promote inclusive growth for a prosperous future.

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Tags: developmenteconomicEconomyfinancial crisisGrowthIndiaPotentialProgressPromisingprosperityRecessionResilienceResilientRobuststabilitySteadfaststrong
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