India an Overview in 2015: The year 2015 started with many expectations and hopes. Country was undergoing financial instability and uncertainty. With the end of the year, economy seems to be back on the track. Climate changes were first time posing a serious threat to health of people. Many different campaign and political astir was created by the ruling “Modi Government”. This is an overview of India, what all has changed in the country in year 2015.
This year lower crude oil prices have boosted many different sectors which were experiencing sluggish growth. Climate changes have been quite critical in year 2015. India’s retail sector has been attributed as high potential market with low economic risk and moderate risk in global statistics. Indian healthcare sector is growing at compound growth rate of $22.9 during 2015-20. Software and telecom are two sectors which provide India a brand image in service sector in the world. Now, let’s have a look back at 2015 overview in detail: The year in review –
Table of Contents
Indian Economy Overview 2015
Indian economy underwent many changes in year 2015. First the Indian economy has changed its methodology of calculation growth. New methodology uses market price of GDP instead of factor cost. Though these changes have brought a little boost but no significant change in growth trajectory is expected. Secondly, scope for mining and manufacturing sector has increased dramatically, value addition definition will help incorporates to increase their productivity which will in turn increase the growth rates.
This year lower crude oil prices have boosted many different sectors which were experiencing sluggish growth. Thirdly, saving weights and usual house hold consumption pattern have been updated. This results in increase of estimated saving. This has led to a decrease in the financial services share in the economy. Although, Oil prices have been decreased this has helped Indian economy as India is a major oil importer in the world.
Indian companies have done massive restructuring over the last five years. Sensex, India’s benchmark index has also touched 30,000 mark for the first time in the history but on the other hand the market seems to look momentum and some tax issues of foreign instructional investor might decrease investments and in absence of any major reform, investor may decrease or slow their investments. So though this year economy has received an appreciation but in long term overall growth looks sluggish.
Climate Change in India 2015
Climate changes have been quite critical in year 2015; erratic monsoon patterns have caused havoc in agricultural sector which values at $374 billion and provides employment to over hundreds of millions of people. Country is facing its driest monsoon since year 2009. A large portion of Indian agricultural sector depends upon the rainfall for its survival. This agricultural drought may cause a threat to idea’s over 1.2 billion population.
India’s aim to provide electricity to over 400 million people but is still dependent on coal plants which leave a huge carbon footprint. So, India has decided to boost India’s solar power capacity by over 100,000 megawatts within a period of 10 years but to achieve such big goals India needs a total financing of over $100 billion which is good opportunity for American bank as climate issue escalates various countries have submitted their blueprints to reduce their carbon footprint. India has also pledged to reduce its carbon emission by 35% by year 2035.
India’s climate change can be attributed to its high carbon emissions. India is the third largest carbon emitter after US and china. Many Indian cities crossed the hazardous air level especially in capital city of India. The alarming rate of increase in pollution level can be credited to transport and power industry.
Retail Sector in India, Overview 2015
2015 brought India’s retail sector back on track. Now India’s retail industry is one the fastest growing retail sectors in the world and retail industry is further expected to grow to a staggering number of $1.3 trillion by year 2020. The current compound annual growth is 16.7%. Retail sector is not only growing in the metro cities of the country but also in small cities across the country classified as Tier I and Tier II. India’s retail sector has climbed and gained an attractive position in global retail sector.
India’s retail sector has been attributed as high potential market with low economic risk and moderate risk in global statistics. In term of market potential, India is ranked eleventh in the world and also India’s net retail is quite significant among the developing and developed countries. India is ranked third in net retail sales. India online retail is also growing at an exponential rate. It is expected to grow from current $6 billion to $70 billion.
Many global key players have shown interest in India’s growing economy such as Wal-Mart, GAP and JC penny. The current government policies for foreign direct investment in retail industry has allowed 51% FDI investment in multi-brand retail and up to 100% limit in single brand retail.
Healthcare Industry Overview 2015
Indian healthcare has also reached new milestones in year 2015 under the new government policies healthcare and medicine sector bloomed to all new levels. Indian healthcare sector is growing at compound growth rate of $22.9 during 2015-20. Private sector has captures most of the India’s healthcare industry, another growing trend in India is tele-medicine, many major hospitals such as Apollo, AIIMS have entered tele-medicine services. The current market for tele-medicine is at $7.5 million but it is expected to grow to reach $19 million by year 2017.
India’s world class hospitals and doctors have also earned a distinct position for medical tourism. Government of India is also promoting healthcare and service to broadcast India as a healthcare club. Government has specially created a central system called national health mission which aims to improve healthcare services in both urban and rural population. Government has reduced exercise, custom duty and service tax, to boost growth in health care.
Service Sector in India 2015
Year 2015 proved to be a good year for service sector. India is now the second fastest in field of service sector growth in the world with a compound annual growth rate of 9%, just second to china’s 10.9% growth rate.
Software and telecom are two sectors which provide India a brand image in service sector in the world. With a stable government India can grow consistently over a decade easily. Some of the issues are drowning India’s service sector. Despite India’s potential in various sub sector services there is no agency or centralized system. Many other sectors are showcasing promising results such as aviation, transportation. Though these sectors have been slowing down over the past years but now they are regaining momentum and can soon contribute to service sector.
Apart from these general stats many different campaigns were launched in India in year 2015, some of these created an impact and some are yet to make an impact. But these nationwide campaigns made 2015 a quite revolutionary year for India. Some of these major campaigns are as follow –
- Make in India campaign was launched to boost manufacturing industry in India and reduce India’s dependence over its imports. India still imports most of its oil and gas, even 90% of the army arms and ammunition is imported from overseas vendors.
- Swatch Bharat is a very important initiative to clean the country and government is very determined to achieve this target, many major steps are being taken by the government. If this initiative is successful India may finally lose its title such as dirty and smelly.
- Investment destination- This is an innovative attempt to allure global investor towards India. In upcoming years, country requires a lot of investment in many of its key sector. Prime Minister Modi has maintained a very specific vision about this project and is personally visiting nations to make this initiative a success.
- Governance change is one of the important campaigns started in India. It asks MP and other VIPs to maintain discipline and work unbiased. This is aimed to reduce corruption and biases working nature of government officials.
- Foreign relation- Within few months after taking charge, Prime Minister Narendra Modi has changed the global scenario. His grand welcome in US and UK has shown a good promise that good times are ahead “ache din”. Prime minister has visited many countries and has brought a lot of investment as well as technology tie-ups to the country.
- Digital India – Government announced to create 100 smart cities and has launched many programs like digital India in association with corporate giants such as reliance, which aims to digitalise India. It is though estimated the total cost required to carry out this project will be over $1 trillion but the government argues this will in turn produce millions of jobs and more Indian will be able to join the workforce.
- Jan dhan yojna- Benefits of this scheme is for both, common man and nation. Under this scheme people are motivated to open bank accounts. This aims to connect every person in the country to the economic system of the country. This new scheme will provide financial stability to the nation.
2015 was a quite dramatic year where climate and some other aspects choked the nation, economy and various sectors of the country bloomed. Year witnessed political clashes between various parties but also witnessed unification and support agreement between various parties.
As for the country governance, Country growth is back on path and nation is again back on track aiming for progress. To sum up this was a mixed year for the country where some of the issues were resolved; some new originated at the same time but good news is that India is still developing and has shown new spirit to succeed faster in the world.