India is set to become the third largest economy in the world by 2030

Title:  India is set to become the third largest economy in the world by 2030

Authors: Shashikant Kumar

                     Abhishek Parab

                Ninad Salunkhe

Introduction: India has the conditions in place for an economic boom fueled by offshoring, investment in manufacturing, the energy transition, and the country’s advanced digital infrastructure.

Objectives: To understand the underlying phenomena of this problem.

Literature review:

Research on the impact of third lagest economy. There’s a clear focus by India’s government to become a hub for foreign investors as well as a manufacturing powerhouse, and their main vehicle for doing so is through the Production Linked Incentive Scheme to boost manufacturing and exports, according to S&P analysts.

 

Testing of Hypothesis:

Ho: μ=3

H1: µ≠3

 

Data collection:

1.Compared to other countries,India has the youngest working population.

 

2.The Government of India driven “Make in India” campaign successfully to contribute towards it’s GDP.

 

3.There are challenges like Poverty and Income inequality.

 

4.Fiscal Deficit and Public Debt could be barrier for becoming third largest economy in World.

 

5.Agriculture is the backbone of Indian Economy.

 

Data analysis:

  1. Compared to other countries, India has the youngest working population.

S.D.= 0.78      S.E.= 0.12           Mean= 4.15           t-stat= 11

 

  1. The Government of India driven “Make in India” campaign successfully to contribute towards it’s GDP.

S.D.= 0.91       S.E.= 0.10          Mean= 3.48           t-stat= 4.51

 

  1. There are challenges like Poverty and Income inequality.

S.D.= 0.91      S.E.= 0.12           Mean= 3.35            t-stat= 4.01

 

  1. Fiscal Deficit and Public Debt could be barrier for becoming third largest economy in World.

S.D.= 1.03      S.E.= 0.10         Mean= 3.40          t-stat= 5.30

 

  1. Agriculture is the backbone of Indian Economy.

S.D.= 0.65      S.E.= 0.12         Mean= 4.23          t-stat= 13.40

 

 

Conclusion:

  1. Compared to other countries, India has the youngest working population.
  • t-stat is 11 which means we accept the hypothesis and t is positive more than 1.96. It means Inflation hikes affect the purchasing power of middle-class family.

 

  1. The Government of India driven “Make in India” campaign successfully to contribute towards it’s GDP.
  • t-stat is 4.51 which means we accept the hypothesis and t is Positive more than 1.96. It means positive relation between inflation hike and economic well-being.

 

  1. There are challenges like Poverty and Income inequality.
  • t-stat is 4.0 which means we accept the hypothesis and its positive more than 1.96. It means Businesses have appropriately adjusted their prices in response to the current inflationary pressures.

 

  1. Fiscal Deficit and Public Debt could be barrier for becoming third largest economy in World.
  • T-stat is 5.30 which means we accept the hypothesis and its positive more than 1.96. It means Inflation rise is directly affected to rise in saving and investing.

 

  1. Agriculture is the backbone of Indian Economy .
  • T-stat is 13.40 which means we accept the hypothesis and its positive more than 1.96. It means Inflation should be in control.

 

References:

Arya Roy Bardhan (2024, January 02) Indian Economy 2023 Wrapped.

Leave a comment