India’s New Brain Power Boosts Economy

Context

India’s economic growth has been fueled by its growing brain power, which has significantly contributed to its economic brawn. The country has witnessed a surge in startups, a skilled workforce, and significant investments in research and development, all of which have played a crucial role in driving its economic growth.

Rise of Startups

India has seen a remarkable rise in startups, with many innovative ideas and products emerging from the country. This has led to a significant increase in entrepreneurship and job creation, contributing to the country’s economic growth. The startup ecosystem in India has been fueled by government initiatives such as the Startup India program, which aims to promote entrepreneurship and innovation in the country. The program provides various benefits to startups, including tax exemptions, easy registration, and access to funding.

Skilled Workforce

India maintains a great pool of talented human resource which numerous professionals have been trained from reputed institutes all over the world. This has in turn helped the country to attract FDIs and engage in global value production and distribution systems. There is an ample supply of engineers, IT specialists, and other competent workers, which is very active in the international market. This has created a relatively large influx of FDI in foreign countries, many global companies have established business in India.

Research and Development

India has been investing heavily in research and development, with many institutions and companies focusing on innovation and technology. This has in turn facilitated developments in some fields such as health, energy and technology through the advancement in technologies. There has also been growth in other areas like artificial intelligence, blockchain, cybersecurity, etc. The government has also launched some other efforts including the Make in India program for manufacturing and innovation.

Education Reforms

India has gone through some educational institutional and policy changes over the past few years; chief among them is The Right to Education Act which aims at extending school education to millions of children. This has served to build an educated and skilled labour force that was lacking before. The country has also witnessed multi-million dollar investments in the sector of higher education, more institutions of learning have been established in the recent past. Government has also come up with policies like the National Education Policy that seeks to enhance the education and training sector as well as skills in the country.

Global Competitiveness

As a figment of the most recent Global Competitiveness Report assessment, should be among the most competitive economy with over and above social infrastructural facilities that foster the growth and development of business, cheap on human resource in terms of labour and equally has a ready human resource supply of skilled labour in equal measure. The structural sectors which are the bases that have witnessed changes in the country for improvement of operations of many firms include transport and energy.

Transformation from Back-Office to Strategic Partner

In the past when outsourcing to India a company could only source the Work back office things Now, India is ready, willing and capable to do Work higher-order activities, Research & development, analysis, Artificial Intelligence/ Machine Learning, product development and hence become an important player in the global innovation. As a result, through this shift in economy, India has been able to go to the next level in doing business, has gained control over hi value operations and as such helps in the economical development of the countries.

Conclusion

India’s new brain power has significantly contributed to its economic brawn, with the country’s growing startup ecosystem, skilled workforce, research and development, education reforms, global competitiveness, and transformation from back-office to strategic partner all playing a crucial role in its economic growth. The country’s growing brain power has enabled it to attract foreign investment, participate in global value chains, and drive innovation and entrepreneurship, positioning India as a vital player in the global economy.

Source: ET

UPSC Mains Practice Question

Q. Examine how the recent advancements in India’s intellectual and technological sectors are contributing to the country’s economic growth. What challenges does India face in sustaining this growth, and how can they be addressed? (250 words)

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