Economy & Investment

India improved from rank 142 (2014) to 63 (2020) out of 190 economies — the most improved large economy over this period. Key reforms: GST (single market), IBC (insolvency), e-courts, RERA, e-stamping, single-window clearances. World Bank discontinued the Doing Business report in 2021 after a data integrity review. A successor Business Ready report launched 2023 uses different methodology and is not directly comparable. For ongoing competitiveness, see PM Gati Shakti and National Single Window System metrics. Source ↗

EPFO started publishing monthly payroll data from April 2018 — pre-2018 baseline is not directly comparable. Net additions = new members minus exited members. Covers only formal salaried employment (establishments with 20+ workers). India's total workforce is ~500 million; formal sector share remains ~10–15%. Informal and self-employment are not captured. PLFS (Periodic Labour Force Survey) shows overall unemployment rate fell from 6.0% (2017-18) to 3.2% (2023-24). Source ↗

FDI surged from $6B (2004) following reforms that opened more sectors. It grew robustly 2006–09, dipped with the global financial crisis, recovered, and reached a peak of $83.6B in FY2022. FDI declined in FY2023-24 amid global tightening and Mauritius treaty renegotiation. FY2022 peak driven by tech, e-commerce, and infrastructure. India's FDI policy allows 100% FDI in most sectors; China remains off-limits for FDI without prior approval. Source ↗

India became the world's 5th largest economy by nominal GDP in 2022, overtaking the UK. In PPP terms (IMF), India is already the 3rd largest. The USD figure fluctuates with rupee–dollar exchange rates — in INR terms, GDP grew from ₹33 L Cr (FY2004-05) to ₹295 L Cr (FY2024-25 AE). GDP contracted -5.8% in FY2020-21 due to COVID-19. Growth in 2010–12 was partly driven by global commodity cycles. Source ↗

Central capex covers roads, railways, defence procurement, ports, and urban infrastructure. Growth was gradual 2004–2019; the sharp ramp-up from FY2021 used capex as a post-COVID demand stimulus. Capex as % of GDP rose from ~1.6% (FY2005) to ~3.4% (FY2025). Note FY2015 dipped slightly (fiscal consolidation). States' capex (partly funded by central grants for capex, or SFCE) adds another ~4–5 L Cr. High public capex has not yet fully crowded in private investment — corporate capex recovery remains moderate. Source ↗

GST (Goods and Services Tax) replaced 17 central and state taxes from July 2017, unifying India into a single market. Monthly collections crossed ₹2 lakh crore for the first time in April 2023. The GST Network (GSTN) handles ~12 crore returns per month. Baseline is 0 because GST did not exist pre-July 2017 — a comparable pre-GST combined indirect tax figure is not directly available. Source ↗

ITR filings grew from ~2.2 crore in AY2004 to 9.19 crore in AY2024. Growth was gradual until 2017 (demonetisation + GST compliance push), then accelerated with pre-filled ITR, faceless assessment, and simplified new tax regime. Of ~9 crore filers, about 7 crore paid zero tax (under the basic exemption limit) — reflecting India's still-narrow formal tax base. The tax-to-GDP ratio has improved but remains below the ~18% global average for comparable economies. Source ↗

TODO: confirm cumulative PLI production/sales figures from Ministry of Commerce. PLI (Production Linked Incentive) launched for 14 sectors in 2020-21. Mobile phone exports have been a notable success — Apple's India production is a cited example. Source ↗

The RDI Scheme was launched on 3 November 2025 to catalyse private-sector R&D investment across six priority verticals: clean energy, AI/ML, quantum computing, biotechnology, semiconductors, and digital agriculture. Total corpus: ₹1 lakh crore over 6 years, administered by ANRF (Anusandhan National Research Foundation). ₹20,000 crore allocated for FY2025-26 alone. The scheme offers concessional financing, grants, and tax incentives to corporates and startups that invest in deep-tech R&D. India's private R&D spend as % of GDP is ~0.3% vs 2%+ in China and USA — the RDI fund aims to triple private R&D investment by 2031. Source ↗

India had zero domestic semiconductor manufacturing before this programme. The ₹76,000 crore Semicon India incentive package (announced Dec 2021) offers up to 50% fiscal support for greenfield fabs. Approved units as of June 2024: (1) Micron Technology ATMP — Sanand, Gujarat (₹22,516 cr, joint venture); (2) Tata Electronics FAB — Dholera, Gujarat (₹91,000 cr, with PSMC Taiwan); (3) Tata Semiconductor Assembly & Test (TSAT) ATMP — Morigaon, Assam; (4) CG Power ATMP — Sanand, Gujarat (with Renesas Japan, Stars Microelectronics); (5) Kaynes Semicon ATMP — Sanand, Gujarat. Combined investment pledged: ~$15 billion+. First chips expected from Micron's Gujarat plant in 2025. Source ↗

India is the 3rd largest startup unicorn hub globally (after US and China) as of 2024. The $1B+ unicorn threshold is a widely used VC benchmark. InMobi (2011) was India's first unicorn; the cohort grew almost entirely post-2014 with digital infrastructure (UPI, Aadhaar, cheap data) enabling scale. The 2021 spike (38 → 91 in one year) reflects the global zero-interest-rate funding boom; several 2021-vintage unicorns have since seen valuation markdowns. Note that unicorn valuations are private-market marks and may not reflect public-market realisable value. Source ↗

TODO: source required — confirm total recognised startups from DPIIT portal. Startup India scheme launched January 2016. India has the third-largest startup ecosystem globally by number of unicorns. Source ↗