India: The New Silicon Valley

  • The country’s internet economy doubled from USD125bn in 2017 to USD250bn in 2020, driven primarily by the ecommerce sector
  • Digital transactions reached USD300bn in 2021 and are expected to reach the USD1tn mark by 2026
  • Launched the Make in India campaign in 2016 to encourage organisations to develop, manufacture and assemble products domestically
  • Reduced corporate tax rates
  • Required the private sector to invest in and own initiatives such as affordable housing and health insurance policies
  • Decided to build an investor-friendly ecosystem that supports domestic investors and FDI to boost the economy
  • This included the launch of the India Investment Grid (IIG), an initiative of the Department for Promotion of Industry & Internal Trade (DPIIT), the Ministry of Commerce, the government of India and Invest India, the National Investment Promotion and Facilitation Agency
  • A stimulus package worth c.INR 21tn (USD277bn), equivalent to c.10% of India’s GDP, to help those most affected by the pandemic and boost the economy
  • A Project Development Cell (PDC) has been set up for the development of investible projects with coordination between the central and state governments. This is expected to increase FDI inflow to India
  • An Empowered Group of Secretaries (EGoS) has been set up to attract investments to India, aimed at reinforcing India’s vision of becoming a USD5tn economy by 2024–25



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We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points.