India an Emerging Economy
What proves that India is an emerging country? How did it reach this stage? What is the most active section that helps the emergence of India? Why is India going to dominate the economy?
To an outsider, India might look like an entrepreneur’s nightmare, a country with over a billion people riven by paradoxes. The distribution system can be inadequate, the legal system can be intimidating, government often fails to deliver basic services and poverty is a pervasive issue that seems impossible to go away. Nevertheless, India is the perfect example of an emerging economy. Those are tough market conditions, but through innovation in the business ...view middle of the document...
India is an example of a semi-peripheral country, it is largely dependent on foreign investors for capital, but has a growing technology industry and emerging middle class consumer market.
When we look at India, we have to consider the fact that they were subjected to colonialism for 190 years under the British crown, and since 1947, their whole system had be reviewed. But this is also why India has a relatively new infrastructure and a new financial system.
Nowadays, India’s growth rate of gross domestic product is overwhelmingly larger than in traditionally strong economies, such as the United States and Germany.
Source: www.statista.com - gross-domestic-product-gdp-growth-rate-in-india
Despite the world crisis of 2008 and 2009, India was able to record impressive GDP growth rates, especially when most of the world recorded negative growth in at least one of those years. What is really impressive, the pike of 2010 when Europe was in the middle of its worst debt crisis and almost brought down the financial system.
The economic liberalization that started in 1991 is part of the reason for India’s success and encouraged trade subsequently ending some public monopolies. A major reason for the slowing down of the GDP growth rate is the skyrocketing of inflation. India’s workforce is expanding in the industry and services sectors, growing partially because of international outsourcing, a profitable venture for the Indian economy. The agriculture sector in India is still a global power, producing more wheat or tea than anyone in the world except for China. However, with the mechanization of a lot of processes and the rapidly growing population, India’s unemployment rate remains relatively high.
Research in international trade patterns show that the world economy is experiencing a general shift in power from the wealthy west, to the developing east. By 2020, world trade will total around US$ 35trillion, two and a half times its value in 2010. The total flow of services trade from Europe to India and China will be larger than to North America. Rapid growth markets, like India, will become an...