It's not a secret anymore!
Through the words of Borge Brende, the president of WEF, the whole world
came to know that India is having a snowball effect.
Small, incremental changes add up to larger, more profound ones that
have an impact on society either positively or negatively. The term
"snowball effect" refers to a minor starting change or action that,
over time, can have a big and growing impact. The snowball effect has been a
significant factor in the growth and development of the Indian economy. India's
economy, which is among the world's fastest-growing, has seen a snowball effect
in a number of industries, advancing the country's total economic development.
The field of information technology (IT) and software services is one such
case. Local businesses started making investments in infrastructure,
technology, and qualified labour as the need for Indian IT services expanded.
This led to a virtuous cycle: the more investments made, the more competitive
Indian companies became, attracting further business opportunities. As a
result, the Indian IT industry experienced exponential expansion, resulting in
the creation of jobs, the earning of foreign currency, and the enhancement of
the national economy. Domestic and foreign automakers choose to set up
manufacturing facilities in the nation as a result of the government's emphasis
on fostering manufacturing through various initiatives and advantageous laws. Peer-to-peer
lending, online investment platforms, and digital insurance, which further
fueled economic growth, were made possible as the digital ecosystem developed.
The healthcare sector, the financial sector, and many others have also made
significant contributions to India's economic progress. Additionally, the
snowball effect increases tax revenue for the government. Tax revenues rise as
the economy grows, giving the government more money to spend on infrastructure
and public services. As a result, better healthcare, education, transportation,
and social welfare programmes can be offered, directly helping the populace and
raising their standard of living as a whole.
One of the notable features to be noted is the increasing number of
startups in India. Among them, the small startups have begun to contribute a
lot more compared to the others. According to the Economic Survey 2021–22,
after the US and China, India has developed into the third-largest startup
ecosystem worldwide. In addition to producing jobs, they significantly
contribute to upcoming innovations and advancing technologies. The snowball
effect encourages investment and innovation. When the economy shows signs of
growth and stability, both domestic and foreign investors become more willing to
allocate capital to the market. Increased investments foster technological
advancements, infrastructure development, and the establishment of new
industries. These developments not only create jobs but also improve
productivity, efficiency, and competitiveness, ultimately benefiting the
people. Brende emphasised that, compared to other developing nations, India has
a more diverse startup ecosystem that is expanding. He continued, "This is
something that other nations can also be inspired by." Additionally, the
snowball effect increases tax revenue for the government. Tax revenues rise as
the economy grows, giving the government more money to spend on infrastructure
and public services. As a result, better healthcare, education, transportation,
and social welfare programmes can be offered, directly helping the populace and
raising their standard of living as a whole. People are the ones who benefit
most as the economy grows, and this can result in a higher standard of living
and more customer satisfaction.
India's economy is expected to increase by about 6%, which will be the
greatest growth rate among major economies worldwide. The Indian population
greatly benefits from the snowball effect in the economy, which promotes
broad-based economic growth and raises standards of living. The snowball
effect's potential to generate job possibilities is one of its main benefits.
As the economy grows, new companies start up and create jobs in a variety of
industries. In consequence, this lowers unemployment rates and raises income
levels, allowing people to meet their fundamental necessities and raise their
standard of living. All these contributions by people to the Indian economy
enabled its citizens to enjoy a better quality of life and brighter prospects
for the future.
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