It remains local when you shop locally. Using Indian Products will improve the local economy, consumers will feel closer to their homeland, and more employment will be created. The vital fact is that your purchase will support your country’s economy.
India will likely overtake all other countries as the most powerful nation in the medium future. With the most significant population, which is still expanding and an economy with a quarter of China’s per-capita GDP, it has a lot of room for productivity growth. Also, India is a thriving democracy with a cultural variety that will produce soft power to compete with the US and the UK. Its military and geopolitical relevance will only increase.
Narendra Modi launched this and encouraged its development. He has made significant investments in the infrastructure and the single market, including through de-monetisation and tax reform. After the Covid-19 downturn, these investments—combined with industrial measures to speed manufacturing, a competitive edge in innovation and IT, and a tailored digital-based welfare system—have produced a solid economic performance.
Post-COVID-19 Change in Indian Economy
Consumers in India are becoming more and more interested in buying goods and brands that are produced locally. The enthusiasm for foreign products is gradually dwindling. The COVID-19 era has seen a dramatic change in consumption habits. On the one hand, the average Indian consumer is much more frugal with their money, but on the other hand, their desire to purchase products made in India is at an all-time high.
We have yet to make any meaningful progress, even when opportunities presented themselves, such as when the US imposed limitations on Chinese imports or, more recently, during the Ukrainian War. This indicates that while sustained export growth will support domestic growth, our economy still needs to be export-led.
Second, while software revenue growth in rupee terms has increased by 56% over the past five years, the relative change in the GDP has lagged. If the demand for these services is affected by the recession, this will undoubtedly be an issue in FY24.
Finally, there has been a considerable decrease in the remittance ratio, from 3.5% to 2.8%. The average growth rate for remittances over the past two quinquennia in this area has only been 35% in rupee terms. The growth rate has not kept up with the GDP expansion despite increasing. The global slowdown may have a marginal effect here as well.
While more Indian consumers choose to purchase goods made in India and are willing to pay a premium, the Swadeshi culture is also growing. The ideal situation is when the made-in-India brand is customised to meet the unique requirements of every single customer.