Daijiworld Media Network - New Delhi
New Delhi, Jun 27: India has undergone a remarkable economic and technological transformation over the past decade, evolving from being labelled one of the world's "Fragile Five" economies into a self-reliant global growth engine driven by financial sector reforms, manufacturing expansion and indigenous technology development, according to a report published by Vietnam Times.
The report said sustained public investment, banking reforms and initiatives to strengthen domestic manufacturing have significantly enhanced India's economic resilience and positioned the country as an emerging technology powerhouse.
It highlighted the government's public capital expenditure programme of Rs 12.22 lakh crore, describing it as a key factor in transforming India from "a passive technology consumer into a sovereign architect of its own future."
The report noted that India's banking sector has witnessed a dramatic turnaround, with the Gross Non-Performing Asset (NPA) ratio declining to 2.5 per cent and net NPAs falling to just 0.6 per cent, the lowest levels recorded in decades.
It observed that public sector banks had been burdened by years of indiscriminate corporate lending, resulting in stressed assets that pushed the Gross NPA ratio to 11.18 per cent in 2018.
According to the report, the government's recapitalisation programme, under which Rs 3.10 lakh crore was infused into public sector banks between 2015 and 2021, along with the implementation of the Insolvency and Bankruptcy Code (IBC), played a crucial role in restoring the health of the banking system.
The report also praised the government's Rs 1.97 lakh crore Production Linked Incentive (PLI) scheme, stating that it has helped transform India into the world's second-largest exporter of mobile phones, with exports exceeding $28 billion.
Highlighting India's semiconductor ambitions, the report referred to Tata Electronics' proposed $11 billion semiconductor fabrication facility at Dholera in Gujarat. Developed in collaboration with global technology partners and equipped with advanced ASML lithography systems, the facility is expected to significantly reduce India's dependence on imported semiconductor chips by replacing imports worth an estimated $10-12 billion annually.
The report further noted India's growing capabilities in rail manufacturing, pointing out that domestically produced Vande Bharat trains cost nearly half as much as imported high-speed train technology while incorporating 75-80 per cent indigenous components. It added that the trains can accelerate from 0 to 100 kmph in just 52 seconds, matching the performance of several international high-speed rail systems.
In the space sector, the report highlighted the progress made by private aerospace company Skyroot Aerospace. After successfully launching India's first private rocket in 2022, the company is now preparing the maiden orbital flight of its commercial launch vehicle, Vikram-1, as it seeks to establish a presence in the global small satellite launch market, estimated to be worth $25 billion.