1. Fastest growing (big) economy in the world in 2015, 2016
- World average: 2.4%
- Emerging & developing economies : 4.3% – 4.7%
- China : 6.0% – 6.3%
- India : 7.5%
2. Falling Commodity and Crude prices – Boon to India
- Crude oil to copper prices have dropped sending shock waves to Russia, Brazil,
Australia, South Africa, Middle East.
- India’s import bill is shrinking
- Reduce our demand for dollars
- Repair the trade deficit.
- Govt. spending can go up
3. Control of Inflation
- WPI : Negative 4.9%
- CPI : 3.8%
- Unleash spending power for consumers
4. Rebooting of Inclusion
- Jan Dhan Yojana / Jan Suraksha Yojana, schemes have ushered crores of poor and
disadvantaged Indians into the formal financial system.
- Relieve them from money lenders and unscrupulous Ponzi schemes.
- 18.2 crore Indians with bank accounts and 15.9 cr with RuPay debit cards.
5. Reduced Subsidy
- 4% of country’s GDP is in subsidies i.e about Rs 3,78,000 crores.
- Wastage, corruption, leakages gobbled lion’s share.
- Petrol, diesel linked to market prices.
- LPG subsidy by direct benefit transfer (DBT).
- Give up subsidy schemes.
- Move to shift Fertilizer subsidy and PDS to DBT.
6. Pension Fix
- India’s massive retirement supply challenge is being addressed.
- More people in EPF net (Rs 6500 to Rs 15000 limit increased)
- Tweaking of National pension scheme with tax breaks.
- Atal pension yojana scheme launched.
7. Unearthing the gold hoard
- Gold imports reduced to $37 billion from $ 56 billion in 2011-12.
- Gold monetization scheme and Gold Bond scheme introduced.
- Higher import duty on import of gold.
- People may shift to paper gold rather than gold bars and coins.
8. Domestic interest in stocks
- FII’s and global stocks pulled our market .
- People moving into Domestic equally through mutual funds – record amounts of money
- 25 lakh equity portfolios added in 1 month.
- EPFO investment of 6.5 lakh crore in equity markets
- Expect to see domestic savings of $15-16 billion flow into equities every year.
9. Going Digital
- Roll out of national optic fibre network that will connect 2.5 lakh gram panchayats to high
speed digital highway.
- Making available internet to Aam Aadmi.
- Direct benefits to citizen curbing corruption & bureaucracy.
- Payment banks.
- Move up the 20% of population using internet to over 50 – 60% in China,Brazil &Russia.
10. Efficiency & effectiveness of Indian law enforcement.
- Action against Sahara group.
- Shutting down Ponzi schemes.
- Pulling up of banks by RBI.
- More reforms on interest protection.