India recently became the sixth largest economy in the world in terms of gross domestic product at $2.597 tr according to 2017 figures of World Bank. World Bank gave the credit to reforms undertaken by Modi’s government, a huge endorsement of pro market reforms of the government. Mr. Narendra Modi has recently been remarkable in his global diplomacy. China has started to import non basmati rice from India while recently, RBI gave licence to Bank of China to launch operations in India. This is laudatory and hopefully a lot more can be accomplished between India and China. However, the real game changer would be when China backs India’s entry into the Nuclear Suppliers Group (NSG). This would smoothen misconceptions between the two countries and take relations between the two countries to a new level.
South Korean President Moon Jae-in invited Mr. Modi to an official visit to South Korea in 2020. In the end, Narendra Modi’s government delivered on many grounds. India has improved its ease of doing business in the world and was ranked 100 in 2018 by the World Bank. GST tax reform has been a success and if the government can streamline the tax slabs from six to three or four, India might be an exemplary example of implementation of unified tax reform. Digitization strategy has gone a long way in initiating financial inclusion among the masses.
GDP mentioned here is nominal. For relationship between real and nominal GDP, please refer to presentations under tutorials on this blog.