Key Drivers Of India 's Economic Growth

Moreover, stock exchanges would have a separate institutional trading platform for listing of start-ups from the new age sectors, including e-commerce firms, while the minimum investment requirement would be Rs. 10 lakh. It was launched to allow small and medium enterprises to list without an initial share sale.

India is a country that is abundant in labor. Export-led industrialization can harness this enormous workforce and help to eradicate poverty. Furthermore, the government should subsidize nascent industries that have the potential to become major exporters.

Foreign trade has played a crucial role in India 's economy growth. The composition and direction of India 's foreign trade has undergone substantial changes, particularly, after the liberalization process which began in the early 1990s. Our major exports now includes manufacturing goods such as Engineering Goods, Petroleum Products, Chemicals & Related Products, Gems & Jewellery, Textiles, Electronic Goods, etc. which constitute over 80 per cent of our export basket. On the other hand, major import items constitute capital goods and intermediates which not only support the manufacturing sector but also supply raw-materials for the export oriented

On the 15th of August, 1947, India awoke to freedom and democracy, when the British passed on the controls of ‘the brightest jewel in the crown’ (as India was lovingly called) to the Indian people. The Indian subcontinent has been invaded since time immemorial for the riches the land held. It is often said that trading with India and conquering it was a great deal to the Europeans. For the British to reign the country for so long, which became dominant primarily after several wars and diplomatic issues in Indian as well as Europe, was a source of pride. It established them as superior to the Dutch, French and Portuguese. However, if India indeed is a country of such abundance, and has been a free country for so long, why is it still counted amongst low income countries? In this paper, I make an attempt to evaluate how India’s economic policies and growth have changed since independence.

created the largest job opportunity in India and not the manufacturing industries. Therefore, apart from

India’s primary sector has helped boost the economy. The employment level, due to the Five Year plan, has increased in the sectors of forestry, fishing and logging. The uncertainty of climatic conditions, has forced a strong shift into the secondary and tertiary sectors. The manufacturing output climbed to 9.3% in the previous quarter while finance and insurance services growth has had an increase to 9.7%. The growth of the financial sector has been a direct result of the reforms in place that boomed the stock market, assisting large firms finance their expansions.

Small and medium enterprise(SME’s) in India have a very important place in the Indian economy. Their contribution in terms of production, export, export, employment generation and all round growth of the country is well known. The role of SME sector in the nation building is well recognized not only in India, but also across the globe. The industrial engines of Japan, china, US, Germany and Taiwan are also driven by the SME sector.

India gained its independence in 1947 and its economic and political structure has been thriving ever since. Now, India is a democratic country that continues to mature as it improves its market-based system. Its growth can be seen in industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign aid and investment. Like the US, it has divided powers between the executive, legislative, and judicial branches. The current Prime Minister is Narendra Modi, who leads the Bharatiya Janata Party. India’s economy is made up of agriculture, industries, and services and is the second-largest workforce in the world. Growth slowed in 2011 due to high interest-rates and inflation, but has continued to move forward in other ways.

India and South Africa are members of the five major emerging economies. They are both developing countries however, they are well distinguished for their large democracy, fast-growing economies and significant influence on regional and global affairs. This report aims to comparatively analyse whether India or South Africa is in a better position to succeed in the global economy. For the purposes of this report, I will be comparing and analysing each country’s political and economic environment and also looking at the environment for foreign direct investment in order to determine whether India or South Africa is in a better position to succeed.

The Indian economy has entered a level of high growth in the current years, after a long period of little growth. As the economic growth is not sufficient to achieve any developments, the policy makers shifted the concern towards making the growth of the economy through a method where employment is at its fundamental.

Economist Nicholas Kaldor theorized the structural transformation of the manufacturing sector as the engine of growth and stipulated that there exist a close relationship with the gross domestic product of a nation. After independence, India's manufacturing sector has developed through several phases from the underlying industrialization and the license raj to liberalization and the present period of worldwide competitiveness. However, still, the share of this sector in overall GDP has stagnated since 1980 and was only 15.8% in 2010-11. Furthermore, India has not been able to make their presence felt in the worldwide for manufacturing products to a far greater extent than similar levels of developing countries in Asia, where the share was

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.

As observed clearly from the above graph, the growth of Indian Manufacturing Sector has been minimal. This can be attributed to the myriad factors that hinder the Indian Industrial sector. On a closer introspection, there are major reasons in the country which holds back the Indian Economy. Firstly, India lacks the optimum prerequisite for the growth of Industrial Sector i.e Infrastructure. India is lagging in terms of infrastructure and more private players and public-private partnership should be encouraged to bring about the change. One such example is Jamshedpur built by TATA. It shows that the problems are able to overcome with proper policy changes.

The economy of India is based on a sound financial system that helps in accelerating production, capital and economic growth of the country. One of the main objectives of every financial system of modern economy to accumulate savings and to develop saving habits among the people. It also helps the saving to allocate into productive usage such as trade and commerce. The efficient utilization and allocation of the savings helps in increasing the economic growth of the country. A well organised financial system also helps in the industrial expansion. India is regarded as one of the big emerging market economies by the World Bank along with china, Indonesia, Brazil and Russia. There has been tremendous financial development in India in the year 1990. It is imperative to know that in what manner the financial development has taken place in India and what initiatives should be taken by the country to emerge as a country with efficient financial sectors and markets.

The Bombay Stock Exchange (BSE) is one of the oldest exchanges crossways the world, while the National Stock Exchange (NSE) is among the best in terms of complexity and advancement of technology. The Indian stock market scene really picked up after the opening up of the economy in the early nineties. The whole of nineties were used to experiment and fine tune an efficient and effective system. The ‘badla’ system was stopped to control unnecessary volatility while the derivatives segment started as late as 2000. The corporate governance rules were gradually put in place which initiated the process of bringing the listed companies at a uniform level. This opening up of the system led to increased integration with heightened cross-border flow of capital, with India emerging as an investment ‘hot spot’ resulting in our stock exchanges being impacted by global cues like never before.