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India on The Move Case Analysis

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India on The Move Case Analysis
I. Background

A country with a 3.3 million square Kilometers area and by 2002 India reached 1.1 billion people with a growing rate of 1.5%, diversity in languages, multi party democracy system, different religious groups, India is facing rapidly growth economy but significant reforms need to be passed still.

The financial situation in India by 1992 wasn’t the most attractive but had been growing 6% annually by 2002, turning India into one of the principal growing economies in the world. By adopting the Washington Consensus, India had remove almost all import and exports restrictions, and so the financial controls made by the International Monetary Fund. As a consequence of a slow progress for privatization and all restrictions made for foreign ownership, FDI became slow to enter in India.

The biggest obstacle in India to face the reality of growth remains in economics and social performances.

II. Analysis (Case Overview)

Although GDP growth rate per year was low, information technologies and back office operations were well known and represent 2% of the Indian’s GDP, the expectations aim that it would be continually growing and contributing with the gross domestic product and a desirable 8% growth rate per year and so did exports since the collapse of the Soviet Union. IT led many Indians entrepreneurs develop in the field decreasing unemployment rates. Fiscal deficit turned into the sought of the right taxation policy. Moreover, conflicts with Pakistan, bureaucracy, privatization policy and corruption in the political environment contribute on having India one step back. Finally, education and infrastructure were to be improved.

All of the above led the 10th five year plan seek up for fiscal stability, political and religious as well.

III. Questions

Why did India experience relatively slow economic growth from independence until 1991?

Huge population, 1 billion by 2002 with a growing rate of 1.5%, more than the country could support



References: Astrella, K. (Feb. 24, 2012). India on the Move [PowerPoint Slides]. Retrieved from http://es.scribd.com/doc/81228847/India-on-the-Move-Final Kumbhar, R. (Mar 24, 2012). India on the Move [PowerPoint Slides]. Retrieved from http://es.scribd.com/doc/86583756/India-on-the-Move

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