Research the economic impact on India in the world Economy over the last twenty years - Essay Example

Agriculture is the most important of them and many of the Indian people make a living out of it. (“The Indian Economy”) The average per capita income has risen from .25 percent before 1980 to 7 percent by 2006 (“The economy survey of India 2007”). The growth trend in the Indian economy has brought about many changes in the policy that has opened the economy to foreign trade and significantly low tax rates, direct taxes rates and government influence over majority of investment decision.

However, a lot can still be achieved and the growth potential can be increased. Though India’s growth has been well for the past two decades, however, it is not distributed evenly across industries and states. The information and communication technology industry have become highly competitive in the world market, this is because of the high skill levels of Indian IT professional and also many are also required abroad for their knowledge that they have in various fields such as software, engineering and financial sector (“The Indian Economy”).

On the other hand, manufacturing industries have felt behind and improved their performance and outcome only recently. There is a requirement for further institutional reforms, which should, focus on product and labour market at the central and state level (“The economy survey of India 2007”, 2007). When we compare India’s economy in regards to the currency rate with the United States then it stands at twelfth position. (“The Indian Economy”) The service industry at present is increasingly and as the young Indians are now getting more comfortable with the English language, it is becoming a focal point for outsourcing activities from major economies such as the United States and the United Kingdom.

Customer service and Technical support is the two main outsource activities. One of the important factors for economy growth in developing and developed countries is of the competition