Things To Celebrate About Our Economy This Diwali

“To make a great future India, the whole secret lies in organisation,

accumulation of power, co-ordination of wills.” – Swami Vivekananda

India of 2023 is not nearly what it used to be even 15 years back. Booming businesses, world-class technology and global influence define our national brand today. What is even more remarkable is that the new determination to compete against the best in the world is not the exclusive privilege of large conglomerates. New-age startups with young founders are driving the country’s capabilities with equal confidence. 

Therefore, this festive occasion demands that we celebrate these outstanding achievements, not only in macroeconomics but also in the sectors where advanced technological expertise is required.

We Are in the Top 3!

From being a third world country, India is today one of the top three economic powers in the world. As per the IMF, dated October 2023, India has a yearly nominal GDP of  $3.7 trillion, which is the fifth largest in the world, but its GDP by PPP is $13 trillion, which is the third largest in the world, after the USA and China. By 2022, India’s nominal GDP had already surpassed that of its former colonial masters, the UK and France, according to an S&P Global Market Intelligence article, dated August 2023. It also estimated that India’s nominal GDP will further rise to $7.3 trillion by 2030.

But that’s not all. As per the CEIC website, India’s index of industrial production grew by 10% Y-o-Y in August 2023. This means our foundational industries, such as steel, oil and natural gas, fertiliser, cement, electricity, etc. are seeing a surge in demand and supply.

In addition to the vastly improved foundational economic metrics, there are certain key spaces wherein India has shown remarkable progress. Let us see some of these sectors in the following sections.

Rise of Renewable Energy

The Invest India website states that as per the REN21 Renewables 2022 Global Status Report, India stands 4th in the world in terms of installed capacity of renewable energy, 4th in wind power capacity and 4th in solar power capacity.

The website also states that as of July 2023, India’s installed capacity of non-fossil fuel energy stands at more than 179.322 gigawatts, which is about 43% of the country’s total capacity. In 2022, India saw the highest year-on-year growth in renewable energy additions at 9.83%. The installed solar energy capacity has increased by 24.4 times in the last 9 years and stands at 67.07 GW. We have companies like Suzlon, Tata Power, WAA Solar, Ujaas Energy, etc., which are helping take the renewable energy industry in India to new heights.

The surge of renewable energy is also supporting the rise of new age, electric vehicle companies and divisions as well. These include Tata Motors, Olectra Greentech, Ola Electric Mobility, Hero Eco, Ather, Electrotherm, Avon, Lohia, Ampere, etc.

Reaching Out to Space

In August 2023, India became the first country to land on the south pole of the moon with the help of ISRO. However, ISRO today is just one of the many organisations that make up the booming spacetech industry in India. Today we have at least 15 new startups that are not only helping us study outer space but are also creating solutions to many persistent problems with their space technology.  

Thus, we have companies like Dhruva Space, Bellatrix Aerospace, Astrogate Labs, Agnikul, Aadyah Aerospace and Pixxel, which are building cutting-edge tech to support satellite launching and operations. We also have companies like Digantara, which is working to create a more safe and sustainable space by building space debris detectors. We have InspeCity, which is working towards its vision of building space-based cities on major space bodies, including an orbital habitat by 2030.

Our capability in space technology is destined to fuel our success across all fronts.

The Internet Revolution

As per a Hindustan Times report dated July 27, 2022, India today has the 5th lowest mobile data rates in the world. A survey shows that the average price of one gigabyte data in India is $0.17 (around ₹13.5). As per the Supreme Court, access to the internet is now a fundamental right under Article 19. As a result, as per the Minister of State for Electronics and IT, as of November 2021, we have over 80 crore Indians who are active internet users, of whom nearly 40 crore are from rural areas.

A large part of this is because of the cheap internet offered by Reliance Jio, which offered a free trial of its plan in its initial days. Over time all big players like Bharti Airtel and BSNL Bharat Fiber have been forced to price their products and services at competitive rates. Jio is also entering into the cheap smartphone and laptop market. 

As a result of cheap internet, combined with UPI, Aadhaar and digital banking, more Indians are becoming a part of the digital consumer base. This gives digital companies in India a much bigger market, thus helping them gain revenues and develop their capabilities to scale. India’s booming digital payments apps, e-commerce, and edtech are all by-products of the cheap internet age of India. 

A new age of digital India is here already and it will generate more value and wealth than we have ever seen before.

Building a Militarily Stronger Nation

There was a time when the Indian Armed Forces were dependent on foreign companies for its arms, especially those which required advanced technology. But today, they have a number of Indian options to choose from as well. We have a whole range of companies that are helping build solutions for the Indian Armed Forces.

These companies include not only large players like Tata Advanced Systems, Adani Defence, Cochin Shipyards, HAL, BEL, and Mahindra Defense Systems, but also smaller companies like Kalyani Strategic Systems, Asteria Aerospace, Grene Robotics, Big Bang Boom Solutions, etc. which are focusing on niche products such as drones, AI, robotics and imaging.

These companies are driving the indigenisation of the Indian military-industrial complex which will help secure our military production in crucial times.

Final Words

If we are to develop India, we must build a workforce that is financially sound. Become a more financially active Indian today by exploring the stock market this Diwali. Open your free demat account with Angel One and experience the cutting edge of investing!

Disclaimer: This article has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.