...Economic Reforms in Asia: The Indian Case Study The Asian economy has seen a rapid rise over the past decade with countries such as China, India and South Korea making major headways. China, being the leader of the group, has been largely tipped by many economists to overtake the US as the world’s superpower by 2025. Asian GDP Performance (1997-2005) Source: http://www.treasury.gov.au The success of these nations came on the back of major economic reforms which transformed these sleeping giants into what it is today. China went through a major economic reform in 1979 and soon thereafter success followed. India, followed the same path, but much later than China, and it was not until the turn on the 1990s that India went on the path of economic liberalisation. This paper will focus on the economic reforms that took place in India and its impact on the country in terms of trade and macroeconomics growth and the birth of new economy. A section of this paper will also be comparing the growth of India in comparison to its Chinese counterparts as well as discuss reasoning behind critics who believe liberalisation was not the main contributor to the growth India is achieving today. Pre-Reform Period Post independence, India saw the need to move from an agrarian economy to an industrial one and as such building its competency in crucial sectors of the economy was important. The role of government therefore included economic management...
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...Economic Growth Of India In 2011 India has one of the fastest growing economies in the world. The Indian economy is characterized by population bursts, poverty, unemployment and child labour. These rising issues have become a major concern for the Indian economy but yet have proven to bring a raise in the Indian economy for the 2011 year. This economic burst will not be sustainable for the Indian economy in the approaching years. Researchers have found that India is becoming a very populous nation. It readily has an increasing birth rate and statistics show that the numbers will keep growing. India's population is expected to reach 1.5 billion in 2030, accounting Indians' to occupy 20% of the human population on earth. If the population bursts continue then the economy of India will go downhill. It will have an effect on many factors that play a role in the economy. This will not only make life harder for people who are already on the verge of poverty but make those who are under the poverty line have a harder time surviving. Poverty is a growing concern in India especially when the nation has been estimated to have a third of the world's poor. Population bursts are causing poverty in the society, making it harder for families to gain access to their daily necessities. The increase in poverty is the leading cause of children being malnourished and underweight. If this continues than there will not be a future generation to run the Indian economy. Due to the baby boomers...
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...Political: Corruption India is ranked 85th out of 175 countries (China is ranked 100th) which is an improvement of 2 places compared to 2010 where India was ranked 87th. The new Modi government has also vowed to clamp down on corruption which will definitely improve rankings. (e.V., 2015) Policies encourage manufacturing especially automobiles Under the Modi government, the Make in India initiative was launched in September 2015 to promote manufacturing in India. This initiative introduced new tax cuts, streamlined administrative processes and liberalised FDI. (Makeinindia.com, n.d.) * Streamlined regulations (easier to do business) * Manufacturing and imports in this sector are exempt from licensing and approvals. * Unified online portal for: * Registration of Labour Identification Number (LIN) * Submission of returns * Grievance redressal * Combined returns under 8 labour laws * Online portals: * Real-time registration * Payments through 56 accredited banks * Online application process for environmental and forest clearances * 14 government services delivered via eBiz, a single-window online portal * Investor Facilitation Cell established * Dedicated Japan+ Cell established * Consent to Establish/NOC no longer required for new electricity connections * Documents reduced from 7 to 3 for exports and imports * Option...
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...Impact of Economic Globalization on India Sabrina Mallavarapu University of Maryland, College Park Impact of Economic Globalization on India Many people fail to realize that it was only 69 years ago that India gained independence from British rule. India is generally thought of as very poor country but it is because it is still a new country. India has undergone major socio-economic changes since its independence from Great Britain. While India did not fair well under Great Britain’s rule, India benefitted from Britain in terms of creating an infrastructure and industry that is still in use today. While India still has many problems, India has benefitted from economic globalization because it has resulted in major economic growth that led to it having the fastest growing GDP of any nation. With the power of the East India Trading Company, the British already had control of several ports, as the company had been a major presence in India since the 1600s, even with the Mughal Empire ruling India. The British had immense power in India’s economy, creating settlements known as Madras, Bombay, and Calcutta, which are now major modern cities in India. Britain’s military power led to its ability to have a monopoly on trade, but also later establish their rule in India. In the early 1700s, South Asia saw the decline of the Mughal Empire as it weakened from repeated wars, rebellions, and invasions (Embree, 2006). India was fighting the remnants of the Mughal Empire when the...
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...INTRODUCTION Economics deals with the economic activities of man. It deals with production, consumption and distribution of wealth. The economic factors play a vital role in the very aspect of our social life. Total development of individual depends very much on economic factors. Without economic conditions, the study of society is quite impossible. All the social problems are directly connected with the economic conditions of the people. That is why Marshall defines Economics as "on one side the study of wealth and on the other and more important side a part of the study of man." Startups have been the flavour of the season over the last few years for the Indian markets. This has resulted into the emergence of a number of home grown unicorns...
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...Current Economic Relationship of Canada and India Even with the opportunities afforded by an average annual growth rate of approximately 8 percent in India, Canada is not well represented in this expanding economy. Currently, India represents less than 0.5 percent of Canadian exports and less than 1 percent of Canadian imports (Foreign Affairs and International Trade Canada). Moreover, India, as a destination, represents less than half a percent of Canada’s total FDI outflows. It should be noted however that services are notoriously difficult to measure and that these statistics may not be truly representative of Canada’s involvement in the India economy. The Asia-Pacific Foundation of Canada (APFC) estimated in 2002 that Canadian firms sold $336 million in commercial services to the Indian market, which is about 2.5 times greater than the value reported by Statistics Canada. Also, in a limited sample of 43 Canadian companies, the APFC reported that investment into India from Canadian firms represented $284 million, which is about twice Statistics Canada’s reported value. The discrepancy in these statistics could be due to investment originating from Canada flowing through a third-party country prior to entering India and to the difficulty in reporting the trade in services. An example of this would be the case of Mauritius, which recorded 12 times more investment in India as Canada. However, the majority of investment originating from...
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...A comparative study of political, economic and social-cultures issues of the Russia and India Prepared for: Dr. Joe Zhou Peng Submitted: 11 May 2015 Prepared by: Zahara CitraArifin 006 Table of Contents INTRODUCTION 1 Task 1 1.1 Economy of Russia and India 2 Terrorist aspects of globalization 2 1.2 Political System of Russia and India 3 Discrimination against Woman 4 Corruption 4 1.3 Socio-Cultural of Russia and India 5 Hofstede’s Cultural Dimension of Russia and India 5 Written and Unwritten Laws 6 Task 2 2.1 Culture Shock 7 2.2 Cross Cultural Training ...
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...Introduction to Economic Zones “Export else perish “ these are the words of first Prime Minister of India Pt. Jawaharlal Nehru. India being a continent like country having 30 states, more than 1000 languages and world second largest man power having diversified natural conditions right from Rain Forests of Kerala, Ice Mountains of Himalaya, Runn of Kuch to productive land of Bramahaputra has great potentials of world class export worthy products from various industries like Agriculture, Engineering, Chemicals, Software’s, Gems and Jewellry, Pharmaceuticals, Bio technology and many more. During last fifty years, mostly ours exports have been less than our imports and the balance of trade been unfavorable. In 1990-1991 India had faced real pressure on the balance of payment. During this period, exports had stagnated and there was a crisis in foreign reserves which lead to an emergency situation in India. Liberalization policy was announced in June 1991. It is the precious gift of Dr Manmohan Singh to the people of India at a time when the country was in the grip of unprecedented economic crisis and political turmoil. One of the areas in which this policy focused on was on increasing India’s export. And the trickle down effect of these reforms has lead to the advent of SEZ In this age of Globalisation, there is a need for every nation in the world to perform well economically. With the improvements in science and technology and the raising standards of living worldwide...
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...The economic well being of a nation is determined by the human, physical and financial resources it possesses. The economy of a nation can progress on to higher levels of growth either by acquiring a larger quantum of the factors of production or through progress in technology. The objective of any nation is to develop its human resources to achieve the optimum utilization of it. Hence, industrialization is one of the ways of bringing about socio-economic development in any country. The economic development of a nation depends largely on its entrepreneurial spirit. The attribute of enterprising emerges from the interplay of behavior and activity of a special segment of the population known as entrepreneurs.1...
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...Economic Reforms in India since 1991: Has Gradualism Worked? India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis. The need for a policy shift had become evident much earlier, as many countries in east Asia achieved high growth and poverty reduction through policies which emphasized greater export orientation and encouragement of the private sector. India took some steps in this direction in the 1980s, but it was not until 1991 that the government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of government. India’s economic performance in the post-reforms period has many positive features. The average growth rate in the ten year period from 1992-93 to 2001-02 was around 6.0 percent, as shown in Table 1, which puts India among the fastest growing developing countries in the 1990s. This growth record is only slightly better than the annual average of 5.7 percent in the 1980s, but it can be argued that the 1980s growth was unsustainable, fuelled by a buildup of external debt which culminated in the crisis of 1991. In sharp contrast, growth in the 1990s was accompanied by remarkable external stability despite the east Asian crisis. Poverty also declined significantly in the post-reform period, and at a faster rate than in the 1980s...
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...increasing level of economic integration between countries, leading to the emergence of a global market place or a single world market. Globalisation has played an important part in the economic development of countries around the world but has also led to increased damage to the environment. To illustrate this, India and Australia will be used as examples. India's economic development strategies built up a number of problems over the period 1965 to the late 1980s. A key problem was declining investment expenditure from an average growth of 5% to 3.7% over the course of two decades and the fact that the government sector was spending much more than it taxed. In response to this, the Indian government of Narasimha Rao in 1991 introduced significant reforms in the Indian economic system by following globalisation trends across the world and making India a more active participant in the global economy. India began to move away from 'self-reliance' as it liberalised its protection policies e.g. reducing tariffs. India became more involved in global capital markets which brought in funding and capital as well as intellectual knowledge. India's currency was floated in 1991 which resulted in significant depreciation of the rupee (approximately 20%). This made its exports more competitive, provided cheaper labour for foreign companies and encouraged foreign investment. INSERT FLOATING CURRENCY GRAPHS Since 2000 the Indian economy achieved higher rates of economic growth than those...
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...Economic Reforms in India since 1991: Has Gradualism Worked? by Montek S. Ahluwalia* India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis. The need for a policy shift had become evident much earlier, as many countries in east Asia achieved high growth and poverty reduction through policies which emphasized greater export orientation and encouragement of the private sector. India took some steps in this direction in the 1980s, but it was not until 1991 that the government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of government. India’s economic performance in the post-reforms period has many positive features. The average growth rate in the ten year period from 1992-93 to 2001-02 was around 6.0 percent, as shown in Table 1, which puts India among the fastest growing developing countries in the 1990s. This growth record is only slightly better than the annual average of 5.7 percent in the 1980s, but it can be argued that the 1980s growth was unsustainable, fuelled by a buildup of external debt which culminated in the crisis of 1991. In sharp contrast, growth in the 1990s was accompanied by remarkable external stability despite the east Asian crisis. Poverty also declined significantly in the post-reform period, and at a faster...
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...Economic Growth: Comparison of Australia, USA and India Subject: HI5003 Economics for Business Submitted by: Anju Kattel Panta OLI2392 Binu Pokhrel Neupane EMV2704 Harpreet Kaur PCC2409 Rachel Chomapoy BRI2029 Khadijah Iftaqar BSI2129 Shama Shrestha EMV2816 Wangyang Wei ANY2083 Date: 6 June, 2014 Introduction to Economic Growth In this report, the economic growth of Australia, USA and India is discussed. Economic growth is key factor to economic development. People of the nation are benefited when national income grows. The is no any scientific method of formula to measure the economic growth whereas the data, charts and other information can be helpful for strategy-makers to understand the countries’ economic positions and design a framework to guide for an effort toward development. Data are the artefacts covering measures of economic growth, such as gross domestic product (GDP) and gross national income (GNI). They also have pointers representing elements known to be appropriate to economic growth, such as capital stock, employment, investment, savings, consumption, government spending, imports, and exports (The World Bank, 2014). GDP is considered to be one of the basic indicators that assess a country’s economy growth. According to The statistics Portal (2014) GDP is defined as market value goods and services produced by using the resources and capital of the country in provided span of time irrespective of nationality. Normally, it is calculated...
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...“MULTINATIONAL CORPORATIONS” A multinational corporation has its facilities, subsidiaries, and other assets in countries other than its home country. A multinational corporation is also known as multinational enterprise . Businesses are always running after profits, therefore, they try to find out ways to decrease the cost as much as they can e.g. cheaper labor to bring about efficiency because it cuts cost of production. The concept of MNC’s originated from Western Europe particularly England and Holland. At that time, with the help of successful trades a lot of banks and money lending agencies emerged. Later in 17th and 18th century, companies like Hudson Bay Company, British East India Company, and French Levant Company emerged as the major multinationals at that time. The modern version of Multinationals emerged after the industrial revolution. During that time, huge foreign investment flowed from Western Europe in Asia, Africa etc. Companies started searching for countries where the labor as well as the resources was cheap and still today, when the no. of MNC’s have reached around 889450, the companies are still searching for countries where they can find much more cheap labor and other resources. A very important factor regarding the topic of MNC’s is globalization. Friedman defined globalization as: “Globalization is the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before -- in a way that is enabling...
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...Global economic slowdown and its impact on the financial services industry in India April 2009 The global slowdown was an outcome of two events - absence of a sound regulatory framework & mismatch between financial innovation and the ability of the regulators to monitor them immediate aim should be to fix the financial system and to maintain the aggregate demand at a high enough level to stimulate the real sector 2 Contents Executive summary 1. Global financial markets: A perspective 2. Indian financial services industry 3. Impact of the recession on the financial sector of the Indian economy 4. Future outlook 5. Conclusion Contacts 4 6 9 14 18 20 23 3 Executive summary The global economy is reeling with the impact of the ongoing recession which started with the sub-prime crisis in the United States and found its way to other developed and emerging economies of the world. This recession has its roots in the initial collapse of the financial sector. However, in a world that is more integrated within each country as well as across nations, the events in the financial sector have eventually trickled down to the real sector of the economies as well. Finance and financial markets play a dominant role in growth and development of modern economies – hence, any recovery from the current recession must be couched in an overall recovery of the health and performance of the financial sector. In the absence of mature financial markets in their own economies,...
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