Post liberalization India has poised itself to be the World’s 12th largest economy. It is also the fastest growing major economy of the world. With the opening of markets and easy access to Global platform India’s dream ‘Vision 2020’ of becoming the leading economies of the world slowly seems a reality. In 1835, even Lord Macaulay, the British historian and politician had to admit before the British Parliament: “I have travelled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values and people of such caliber… the very backbone of this nation, which is her spiritual and cultural heritage…..” Thus, it would be wrong to state that in 1947 India started to construct a modern nation from scratch. Rather, it began the process of rediscovering its rich cultural and spiritual values that had formed the foundation of India in the past.
Former President of United States of America, Ronald Reagan had stated that “Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the U.S.”. In the revised 2007 figures, based on increased and sustaining growth, more inflows into foreign direct investment, Goldman Sachs predicts that "from 2007 to 2020, India’s GDP per capita in US$ terms will quadruple", and that the Indian economy will surpass the United States (in US$) by 2043. In spite of the high growth rate, the report stated that India would continue to remain a low-income country for decades to come but could be a "motor for the world economy" if it fulfills its growth potential.
Goldman Sachs has outlined 10 things that it needs to do in order to achieve its potential and grow 40 times by 2050. These are as follows:
1. improve governance
2. raise educational achievement
3. increase quality and quantity of universities
4. control inflation
5. introduce a credible fiscal policy
6. liberalize financial markets
7. increase trade with neighbours
8. increase agricultural productivity
9. improve infrastructure and
10. improve environmental quality
The booming economy, friendlier regulations experienced has helped in rapid growth in recent year. This has also enhanced appreciation of this sector’s critical role in driving economic growth of the country. The message of growth needs to be understood and captured well by the India’s Micro, Small and Medium Enterprises (MSMEs) to leverage benefits and seek a path of growth in India.
