The Economy of India - Essay Example

India’s Economy Recent advancement in Asian economy is really transforming the world; it is a sign of international economic growth. India being one of the greatest economies in the world has continued to attract various business people and organizations globally. The country enjoys rapid and positive changes in the economy, thus, creating numerous opportunities for both locals and foreign investors. According to Rai, economic output for the July-Sep 2013 quarter India experienced a growth rate of 4.8%, which was higher than expected 4.4% in the previous quarter (Web). India positions herself as one of the beneficiaries of globalization due to her policies towards globalization. India has worked hard in adopting policies that can see it succeed in the wider market that has been brought about by globalization. Hard work and determination of both the large population and the government has immensely promoted the growth of India’s economy. It is expected that the India’s economy will grow at 5% in the financial year ending March 2014. The India’s economy is likely to grow very fast and compete with the world’s largest economy. India produced most consumer goods but was controlled directly by government and financial institutions while the public dominated heavy industry, industry, and telecommunication (“Exim Bank of India” Web). India’s is now termed as booming and this has greatly helped in the expansion of the infrastructure. Indian economy looks to be rebounding in a better shape from the economic crisis. The India’s infrastructure is likely to be among the best in 2017 although it requires very heavy investments that absorb billions of dollars. India’s government has realized the need for entrepreneurship hence investing in infrastructure such as airport by using private financing. India has the largest education network in the world and is set up by the Central or state governments by means of legislation and all colleges are affiliated to some universities making more people to be educated in the population. India being one of the greatest and fast growing economies has employed so many people with agriculture employing almost half of the population followed by industrial and lastly the service sector though the wages paid is not competitive. All the foreigners working in India are subject to the national taxation laws and further benefit from double taxation while the country’s taxation system is said to be progressive and equitable and is designed to support responsibility and accountability. The tax system discourages tax related crimes and promotes tax compliance that promotes the economic growth. The country is working very hard to reduce the corruption that has greatly affected its corporations and is believed to have concentrated among politicians and government institutions (Swaminathan 8-12). India is planning to implement its business by coming up with very strict policies that protect the small-scale businesses and other large industries by providing financial assistance. The government is also trying to curb corruption and other economic issue that may discourage businesses in the country. The businesses are also working on cost effective issues India depends heavily on their own experts especially the many that are in America to boost their economy. Most Indians have come back to their countries to invest. Additionally, the Indian professionals such as Gupta have even introduced institutions that teach entrepreneurship skills within the population. The experts are used in India to spearhead the development processes within India. The Indian community has also strongly supported businesses because of their culture. India is ensuring that all its population who lives outside the country and is experts return home after gaining enough experience to fill the gap created by the boom by professionally applying their acquired skills in the country’s development. The need for more experts and the society support provides a warm environment for individual skilled professionals to succeed in India. India has extremely big advantage in its education system, which tends to promote the entrepreneurship skills and knowledge. The education system gives room for discovering new ideas and innovativeness to the students, which promotes growth and development of the country. The idea of technology is applicable and mostly used in the learning institutions to promote discovery and development in the country (Swaminathan 8-12). The learning system has opened a big room for arguments among the students hence achieving better results out of the discussions. The room for innovativeness and discovery of the Indian population and the education system actually supports and promotes room for growth of many businesses. The Indian population has turned to be a big source forever rising entrepreneurs right from the young to the aged groups who struggle to achieve great heights in their related fields. Most companies in India such as Infosys, Bollywood and Kingfisher beer producer have attracted worldwide markets because of their ability to produce better services and products (Rai Web). The population has had the spirit that they can actually do great things to change their economy. The wider market and the population mood contribute to an environment where individuals can really do business as they enjoy the bigger market and the motivated population, which in turn boost the entrepreneur morale (“Exim Bank of India” Web). India’s economic performance seems to offer attractive investment destinations for foreigners. Currently, net FDI ratio is almost close to its highest level and India seems to experience a modest improvement in the net FDI position in the first three quarters of 2013. According to Taborda, “activities in finance, insurance, real estate and business services recorded the highest growth rate, which represented 10% YOY, then followed by production of electricity, gas and water supply, which experienced 7.7% YOY” (Web). Taborda adds that agriculture hastened again in the September quarter by 4.6% yoy. The production of cereals, pulse, and oilseeds are deemed to grow by 4.9%, 1.9% and 14.9% respectively in the current ago while construction output went up to 4.3%, which represented an increase from 2.8%. Moreover, manufacturing industry recovered from the previous quarter by indicating a growth of 1% in the current quarter (Taborda Web). It is therefore apparent that services industries including financing, insurance, real estate, and business services largely boosted the economic growth at 8.9% as community, social and personal services that grew by 9.4%. According to “Exim Bank of India” growth rate was experienced in all other economic activities including a 3.95 growth rate in trade, hotel, and transport and communication industries as well as 3.7 % growth in electricity, gas, and water supply (Web). Furthermore, there was a recorded growth of 2.8% in construction industry and 2.7% growth in forestry, agriculture and fishing but a decrease of 1.2% and 2.8% in both manufacturing and mining industries respectively (Taborda Web). Additionally, India’s total merchandise trade has experienced a rapid growth from $252bn in 2006 to $ 794bn in 2012 with a trebled export and imports in that period. The Export Import Bank of India acts as the premier export finance institution in India with the main aim of financing, facilitating, and encouraging foreign trade. With the current economic situation that is accompanied by adoption of new technologies, huge educated population and faster growth of industries may promote the businesses in future. There is likeliness of future growth of the Indian industries due to the good infrastructural programs that tend to enhance smooth running of businesses (Taborda Web). Generally, India’s economy is one of the greatest upcoming economies in the world due to its political organization and policies put in place to boost the economy. India’s economy has the potential of becoming the dominant supplier of manufactured goods making it among the largest market economies in the world. It is worth noting that India has greatly contributed to the world’s GDP growth. Despite of India’s large population, it has managed to become one of fastest growing economies in the world. Works Cited “Exim Bank of India.” Indias Trade: Full List of Exports, Imports, and Partner Countries. The Guardian, 2013. Web. 11 Dec. 2013. . Rai, Saritha. Is the Worst really over for the Indian Economy? Forbes, 12 April 2013. Web. 11 Dec. 2013. . Swaminathan, Jayashankar M. Indian Economic Superpower: Fiction or Future?Singapore: World Scientific Pub, 2009. Print. Taborda, Joana. Indian Gdp Growth Beats Expectations.Trading Economics,29 Nov. 2013. Web. 11 Dec. 2013. . Read More