Macro Economics - Research a country - Essay Example

The other neighbors of India that lie in the Indian Ocean are Sri Lanka, Maldives, Thailand and Indonesia. Discussion The Indian economy is the eleventh largest economy in the world in terms of nominal worth. The nominal worth of India has been estimated to be $1.75 trillion. The economy is also designated as the third ranked economy in the world in terms of purchasing power parity. The country has witnessed an average GDP growth rate of 5.8% over the last twenty years with the average growth rate of the economy reaching to 6.

1% in 2011-12. The backbone of the Indian economy is the agricultural sector supported by the huge labor force available in India. The size of the labor force in India is 486.6 million which is the second largest in the world. The economic reforms adopted by the country have seen the growth of the services sector in a rapid manner over the last twenty years. The agriculture sector now constitutes 18.1% of the GDP of India, the services sector constitutes 55.6% and the industrial sector comprises 26.

3% of the GDP of the country. However, the country has GDP per capita of USD$448.91 which ranks 140th in the world. The political system in India has seen the emergence of coalition government formed over the last two decades with no single party being able to attain majority in forming the central government. There is diverse opinion between different states. However, in the best interest of the nation, the central government and states work hand in hand to implement the policies for economic growth.

The economic reforms adopted by India to attain economic liberalization have seen growing investments in the education and heath sector (Mankiw, 2011). The infrastructure of the rural health and education has developed due to the strategic policies of the government thereby improving overall standard of living for the population. The share of India in world trade was 1.68% as on 2008. India has emerged as the nineteenth largest exporter and the tenth largest importer in the world as on 2011. The main industries that import goods in India are the crude oil, chemicals, fertilizers, gems and machineries.

The major industries that export goods from India are leather, textile, jewellery, petroleum, engineering goods, etc. The average exports of India stand at USD$3703 and the average imports is USD$5463 as on 2013 (Trading Economics, 2013). The process of globalization has led to the inflow of huge volumes of foreign direct investments in the country. India has been able to develop progressive technologies that have laid the path of sustainable economic progress of the country. By attracting foreign investments, India has been able to catalyze the growth of industries and services that impacted the economic trends in a positive manner.

The telecommunication industry is the fastest growing industry in India while the automobile industry is the second fastest growing industry in the world. This has led to the rise in the income level of the population that stimulated the economic demands followed by the growth of production volume and GDP growth in India. India has been in a relatively advantageous position in the world economy after the global financial crisis and meltdown (Allen, 1999). India’s share of overseas investments in US was limited due to which the country was far more insulated from the adverse impacts of the crisis.

India has moved from strength to strength with central bank in India