Preview

Indian Economy

Powerful Essays
Open Document
Open Document
2398 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Indian Economy
INDIAN ECONOMY
India is today one of the six fastest growing economies of the world. The country ranked fourth in terms of Purchasing Power Parity (PPP) in 2001. The business and regulatory environment is evolving and moving towards constant -improvement. A highly talented, skilled and English-speaking human resource base forms its backbone.
The Indian economy has transformed into a vibrant, rapidly growing consumer market, comprising over 300 million strong middle class with increasing purchasing power. India provides a large market for consumer goods on the one hand and imports capital goods and technology to modernize its manufacturing base on the other.
An abundant and diversified natural resource base, sound economic, industrial and market fundamentals and highly skilled and talented human resources, make India a destination for business and investment opportunities with an assured potential for attractive returns.
Far-reaching measures introduced by the government over the past few years to liberalize the Indian market and integrate it with the global economy are widely acknowledged.
The tenth five year plan document targets a healthy growth rate of 8% for the Indian economy during the plan period 2002 - 07.

India has a mixed economy system. In a mixed economy system the public sector (Governed-owned) enterprises exist, along with private sector enterprises to achieve a socialistic pattern of society.
Planning In India:
After independence India adopted a planned system of economy. Government of India constituted a Planning Commission in March 1950 with the Prime Minister of India as its chairman. Planning Commission is a statutory body.
National Development Council-
Chief Ministers of all the states of the country and the members of the Planning Commission of India constitute the National Development Council. The Prime Minister of India presides over the council.
Five Year Plans in India-
India after independence adopted the five year plans concept for the

You May Also Find These Documents Helpful

  • Good Essays

    Description: India has experienced a steady GDP growth rate of 8% during the last five years. The subcontinent’s economy is expected to continue its growth momentum over the next five years. Strong domestic demand and a burgeoning middle class are expected to continue driving the Indian economy to new heights during the forecast period of 2012-2017. Lucintel, a leading global management consulting and market research firm, performed a Political, Economical, Sociological, Technological, Legal, and Environmental (PESTLE) analysis of India, and presents its findings in “PESTLE Analysis of India 2012.” India is the second-most populous country in world, and its large reserve of human capital is crucial to the nation’s economic development. Its growing, technically skilled work force draws international players to locate facilities there. The service sector is the major contributor to Indian GDP and the leading driver for economic growth. Industries in the service sector, including information technology, telecommunication, and retail, are major segments that contribute to India’s economic expansion. Lucintel’s report indicates that although the inflation and unemployment rates, which are both higher than planned, remain major challenges for Indian economy. The expanding middle class in India’s urban area is likely to help fuel India’s future economic growth. Political cohesion and economic reform program by successive governments, such as the opening of Foreign Direct Investment (FDI) to more industries, are expected to offer growth opportunities. One major threat to the Indian economy is political instability. The economy has huge potential, but a certain level of political uncertainty hampers growth. National elections are scheduled in 2013-2014. After a new government is installed, more economic reforms are likely to be instituted. Lucintel’s study,…

    • 1871 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Indian society is highly plural. It is the biggest democracy in the world with multi party political system. In population, India is second to China, with nearly 1200 million people. This is the most important consumer market in the world. It is a fast developing world. India is the third largest economy in the world and second fast growing economy in Asia. It has the tremendous potential of development with huge intellectual human force. With all these advantages and the huge market potential, world super entrepreneurs are looking for business establishments in India. With the overcrowded population and the millions of hard working and qualified personals, India offers a very cheap work force to the world. Many have realized the business potential in India, started exploring the unique opportunities of investments.…

    • 464 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    India has been described as an ‘import substituting country par excellence’. A balance of payments crisis in 1991 led to the initiation of an ongoing process of trade liberalization. These events corrected the in-built systemic bias against exports and they have led to a degree of correction of the price distortions in the Indian economy through the creation of a more open economy. More importantly, increased competition and the presence of firms from foreign markets has injected a greater degree of quality consciousness and customer orientation, which has been largely absent due to the lack of competitive pressures. In the past there were few foreign firms present in the protected domestic Indian market. These changes have reduced the tendency of…

    • 2092 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Globalbusiness

    • 733 Words
    • 2 Pages

    The economic system that developed in india after 1947 was a mixed economy characterized by a large number of state-owned enterprises, centralized planning and subsidies. In mixed economies, government also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests…

    • 733 Words
    • 2 Pages
    Good Essays
  • Good Essays

    India is one of the largest economies in the world in terms of purchasing power and is among the fastest-growing, with a population of around 1.12 billion people, with huge natural resources, and with costs that are at the very low end of the global average. All major consumer companies of India have sophisticated marketing and product development plans. Moreover, the multinationals that are operating in India have business models that are tailor-made to local markets and customs.…

    • 24560 Words
    • 99 Pages
    Good Essays
  • Better Essays

    a) The economic system that developed in India after 1947 was mixed economy system characterized by a large number of state-owned enterprises, centralized planning, and subsidies.…

    • 1534 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    After independence of India, a former model was adopted; reporting directly to The Prime Minister of India was established on 15 March 1950. Jawaharlal Nehru was the first chairman of Planning Commission.…

    • 1477 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Hul Economic Analysis

    • 439 Words
    • 2 Pages

    Indian economy is unique in the world. The rationale behind this is domestic demand of the country is yet to be met. Further, it has second largest population in world which shall keep the domestic demand in check on one hand while companies will have enough labor force at its option on the other. The company is highly dependent on import of oil which is keeping its trade balance in negative. Government of India is allowing FDI in various sectors to bridge the above gap which in turn fulfills the induction of new capital in economy and technologies from western companies are being transferred within a short period of time. This all leads to efficiency of Indian market on demand as well as supply side.…

    • 439 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Five Year Plan of India

    • 1733 Words
    • 7 Pages

    In March 1950, Government of India constituted a statutory body with the Prime Minister of India as its Chairman-called the Planning Commission. Pt. Jawaharlal Nehru was the first Chairman of the Planning Commission.…

    • 1733 Words
    • 7 Pages
    Good Essays
  • Good Essays

    All is going well for India now - an improved investment climate, high economic growth, a young population (70% population below 34 years of age)…

    • 1609 Words
    • 7 Pages
    Good Essays
  • Good Essays

    The 8th Five Year Plan

    • 442 Words
    • 2 Pages

    Eighth Five Year Plan of our country runs through the period from 1992 to1997. Prior to start of the plan, there was a period of economic instability in India and hence no five year plan was implemented during 1991-1992. In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with reserves of only about US$1 billion. Thus, under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao was the twelfth Prime Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India's modern history overseeing a major economic transformation and several incidents affecting national security. At that time Dr. Manmohan Singh (currently, Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of privatisation and liberalisation in India.…

    • 442 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    quantity, i.e., there is a shortage of inputs. When these inputs are used in the…

    • 6101 Words
    • 25 Pages
    Powerful Essays
  • Powerful Essays

    References: Acharya, Shankar, 2001. India’s Macroeconomic Management in the Nineties (New Delhi, Indian Council for Research on International Economic Relations). Ahluwalia, I.J., 1985. Industrial Growth in India: Stagnation Since the Mid- Sixties (London, Oxford University Press). Bardhan, Pranab, 1997. “Corruption and development: a review of issues,” Journal of Economic Literature, vol. 35, September, pp. 1320-1346. Bhalla, G.S., 2000. “Political economy of Indian development in the 20th century: India’s road to freedom and growth,” Presidential Address at the 83 rd Annual Conference of the Indian Economic Association, University of Jammu, Jammu and Kashmir, 30 December. Di Lodovico, Amadeo M., William W. Lewis, Vincent Palmade and Shirish Sankhe, 2001. “India-from emerging to surging,” The McKinsey Quarterly, http://www.mckinsey quarterly.com/article_abstract.aspx?ar=1117&L2=7&L3=8 Government of India, 1984. Committee on Trade Policies (New Delhi, Ministry of Commerce). Gupta, Rajat, 2001. “Creating Indian entrepreneurs,” India Today, February 12. Gupta, S.P., 1999. “Development experience of the nineties and search for a new paradigm,” A.K. Dasgupta Memorial Lecture at the 82nd Annual Conference of the Indian Economic Association, Guru Nanak Dev University, Amritsar, December 29. Joshi, Vijay, 2001. “Capital controls and the national advantage: India in the 1990s and beyond,” Oxford Development Studies, vol. 29, 3, pp. 305-320. Karunaratne, Neil Dias, 2001. “Revisiting capital account convertibility in the aftermath of the Currency Crisis,” Intereconomics, vol. 36, 5 September/October, pp. 264-271. Kayne, Jay, 1999. State Entrepreneurship Policies and Programs (Kansas City, Kauffman Center for Entrepreneurial Leadership). Krueger, Anne O., 1993. Political Economy of Policy Reform in Developing Countries (Cambridge, MIT Press). Lall, Sanjaya, 2001. Competitiveness, Technology, and Skills (Northampton, MA, Edward Elgar). Lewis, William, 2001. “Unlocking potential: remove barriers to India’s growth,” The Wall Street Journal, September 11. Nayar, Baldev Raj, 2001. Globalization and Nationalism: The Changing Balance in India’s Economic Policy, 1950-2000 (London, Sage Publications). Panagariya, Arvind, 1994. “India: a new tiger on the block?” Contemporary Issues in World Trade, vol. 48, 1 Summer, pp. 193-221. Pursell, Gary, 1992. “Trade Policies in India,” in Dominick Salvatore, ed National Trade Policies: Handbook of Comparative Economic Policies, vol. 2 (New York, Greenwood Press). Rao, M. Govinda, 2000. “Tax reform in India: achievements and challenges,” Asia-Pacific Development Journal, vol. 7, No. 2, December 2000, pp. 59-74. Reynolds, Paul D., Michael Hay, William D. Bygrave, S. Michael Camp and Erkko Autio, 2000. Global Entrepreneurship Monitor: 2000 Executive Report (Kansas City, Kauffman Center for Entrepreneurial Leadership).…

    • 7336 Words
    • 30 Pages
    Powerful Essays
  • Powerful Essays

    Investment eccentric: With a rapidly expanding consumer base (private consumption currently account for 61% of India’s GDP) and stabilized consumer price index rate 4.2%. India is now preferred investment destination and has surpassed the U.S to become the second most favorable destination for FDI, in the world after China.…

    • 5446 Words
    • 22 Pages
    Powerful Essays
  • Better Essays

    Nitii Aayog Case Study

    • 1612 Words
    • 7 Pages

    The Government of India, in keeping with its reform agenda, constituted the NITI Aayog to replace the Planning Commission instituted in 1950. This was done in order to better serve the needs and aspirations of the people of India. An important evolutionary change from the past, NITI Aayog acts as the quintessential platform of the Government of India to bring States to act together in national interest, and thereby fosters Cooperative…

    • 1612 Words
    • 7 Pages
    Better Essays