I believe India is going to be the next economic superpower because of many different factors but not without change to traditional practices. Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. Macroeconomics simplifies the analysis of how the country’s total production and level of employment are related to attributes including national, regional, and global economies. India being the largest democracy and very high in many other rankings, including national wealth. “India’s citizens are yet ranked as some of the most impoverished in the whole world.” (Witt, Chapter 11).
The International Monetary Fund released an update
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India’s service sector has been a primary driver of economic growth over the past few decades, but the industry’s share of value added is stuck at 25%. The share of microenterprises and small businesses in manufacturing employment is 84%, compared with 25% in China. The fact that it has moved from an agricultural economy to a service driven economy with almost no growth in industry is not a virtue, it is the result of policies that have hampered manufacturing and mining.
The main industrial exports of India are textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals and agricultural exports like rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes, livestock, and poultry keep India’s export income one of the highest. With the world’s second highest workforce at a “2014 estimate of 502.2 million people” (US CIA-World Factbook)
The financial sector in India is predominantly a banking sector with commercial banks accounting for more than 60 percent of the total assets held by the financial system. India 's services sector has always served the country 's economy well, accounting for about 57 per cent of the gross domestic product. The financial services sector has been an important contributor to the country gross domestic product (GDP) accounting for nearly 6 percent share in 2014-15. The success of their financial sector is from the
Global connectedness has given India local advantage due to elements such as 9 months of sunshine each year and lower cost for farm labor. Other competitive advantages are skilled English-speaking workers, differences in developed nations salaries and salaries in India and a history of entrepreneurship and administrative experience (Contractor, Kumar &
In 2006, fifty percent of India’s population was under the age of twenty-five. (Kamdar, 2007, pg. 8) The number of 15-24 year olds, which is the demographic most suited to entry-level work, is nearing 250 million. This is in sharp contrast to India’s largest Asia competitor China, whose youth workforce is declining due to regulated birth rates and a spike in college enrollment. (Youth population chart, NYT, 2015) A larger base of workers for input in emerging markets leads to greater outputs of production, which is important for shifting the production possibility curve outward and building a strong
Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.
The biggest democracy of the world and the largest democracy in the world, India and the United States of America have always had an on/off relationship in spite of the their near identical origins, institutions and problems. Emerging from a British colonial past both countries have withstood a number of challenges and complications that arise in a modern heterogeneous state.India, on one hand is a 1.2 billion strong nation which is expected to become the world’s most populous within a generation. Armed with a nuclear arsenal, India boast of an army that is third after only China and the USA. Economically, the GDP of India in terms of purchasing power stands at $4.7 trillion which is the fourth largest in the world and is rising at the
India with about 1.2 million populations and china with about 1.3 billon population are two big demographic and emerging countries in the world .Over a past few decade India’s combination into the economic has been accompanied by remarkable economic growth (World Bank 2011¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). India’s total GDP (gross Domestic Product) growth was 5.5% in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India poverty has been decline from 37.2% in 2004 to 29.8% in 2010 (world bank 2011).The major economic growth sectors
As the world’s 3rd largest economy, India is an important trade and economic partner for the United States(Martin, Akhtar , Kronstadt , Kumar ,Siskin,2014).There are many resources which are traded between India and United States. This trade may be due to differences between in labour productivity, factor abundance or other factors.example of products traded between India and US include precious stones and metals,aircraft and spacecraft parts,machinery,optical instrument and equipment,textiles,mineral fuel and oil and machinery(Singh,Verma,2016).This trade is due to a fact called comparative advantage which means if countries specialise in producing goods where they have a lower opportunity cost then there will be an increase in economic
Most countries have their own set of rules, rules that later can become policies and may be put into place to ensure and endorse the well-being of the country. (Corrigan & Di Battista, 2015) India’s “economy has been one of the largest contributors to global growth over the last decade, accounting for about 10% of the world’s increase in economic activity since 2005, while GDP per capita in purchasing power parity (PPP) terms is today three times as high as in 2000.” However, contributing to growth is not necessarily an advantage to a country. India continues to have the largest number of poor in the world, approximately 300 million are in extreme poverty and is one of the largest and youngest population in the world. In order for India to have a more resilient future, it must better focus on better education, focus on female participation in the labor force, and ensure decent living conditions for the vast majority of its citizens.
India has the second largest workforce in the world, which is expected to increase even more. This gives India an advantage over competitors such as China. In addition, India also has a large English-speaking working population, which gives the country a competitive advantage in sectors such as information technology (IT), business process outsourcing (BPO) and a multitude of other services.
Manufacturing, service and agriculture are the major economic activities in any country. In India, manufacturing and services together constitute nearly 75% of the GDP. Moreover, in recent years the growth in GDP is primarily due to the growth in these sectors of the economy. During the last ten years, the share of services in the GDP has grown steadily from about 40% to about
India holds the world’s second largest population and fourth largest economy. With a 7.5% GDP growth rate and GDP per capita in trillions, her growth and development is remarkable. Since independence, India has altered its dependence on grain imports into a stronger global agricultural industry that is a significant
India is an agricultural country. Seventy percent of its people live in villages. One-third of our National income comes from agriculture. Our economy is based on agriculture. The development of agriculture has much to do with the economic welfare of our country. Agricultural market is continuously increasing for the past couple of decades in India as the technology is developing. The continues increasing demand of food products has resulted in the increased demand of food grains and thus has increased the use of farm machinery in rural areas. India is seeing the movement of labour from rural to urban areas which with the demand of increasing production efficiency in food product is the evidence that there is a future for farm mechanization in India. Make in India is an initiative of the Government of India, to encourage companies to manufacture their products in India.
Data innovation in India is an industry comprising of two noteworthy segments: IT administrations and business methodology outsourcing (BPO). The division has expanded its commitment to India 's Gross domestic product from 1.2% in 1998 to 7.5% in 2012.[1] As per NASSCOM, the part totaled incomes of US$100 billion in 2012, where send out income remained at US$69.1 billion and residential at US$31.7 billion, developing by more than 9%.
India is a republic dominion in South Asia. It has the second highest population in the world after China, which reached the 1 billion mark in June 2000. As per the latest Census of 2011, the total population of the country is 1.21 billion, which includes 623.12 million males and 587.4million females. India’s share of the world population is 17 percent. The literacy rate among the population for seven years and above for the country stands at 72.99 percent. The total workforce in the country is 397 million, going by the latest Round of National Sample Survey (NSS) of Employment and Unemployment. Nearly 92 percent or more out of this are occupied in the unorganized sector activities, counting informal sector, whereas in organized sector, almost 8% is employed. The ratio of workforce engaged in agriculture to that in non agriculture sector is 3:2 for the total employment. As far as the non-agriculture sector employment is concerned, 82% is the unorganized workforce and about 18 per cent is the organized segment. Out of the total workforce of the country, merely about 12 to 15 per cent of the total workforce in the country is estimated to be falling in the category of wage or salary employment. As per the Economic Survey, Government of India 2002-03, such employees comprise about 40 per cent of the workforce in the urban areas and 6 per cent of the workforce in the rural areas. As per the Government of India report of 2002, only 5% of the work force, aged from 20 to 24 has
Agriculture is a critical sector of the Indian economy. Though manufacturing and service sector industries gained attention during the
There is growing realization among marketers about the enormous untapped potential of India’s rural markets. The Indian rural market with its vast size and demand base offers great opportunities to companies. In India, there are 6,42000 villages . While agriculture used to be the major source of income in rural areas, over the past 10-12 years, the dominance of agriculture has been rapidly declining. The contribution of agriculture to India’s GDP was less than 20% in 2008-09. There is a sizeable population of self-employed persons in the hinterland and quite a few of them are into services such as repair and maintenance of motors and pump sets, televisions and other electrical appliances, farm equipment, tractors and two wheelers. Some are also engaged in other services like hospitality, transport, entertainment etc.