Socio Economic Growth Of India

The Indian economy following the 1991 crisis swiftly moved away from central planning economy towards market-based economy with the government having less intervention and control. As a result, companies were operating in what is called emerging

India has a highly dynamic and entrepreneurial business environment (Ford, 2011). The freedom of democracy in India supports the country’s private enterprise greatly. India’s characteristics of sovereignty could very well succeed China’s Communist led, authoritarian growth model (Schuman, 2012).

In 2015 India was ranked among the highest countries globally in consumer confidence, this comes after the International Monetary Fund estimated an economic growth of up to 7% annually for the next decade in India. But this hasn 't always been the case, in fact, it wasn 't so long ago that India was simply another colonized nation around the world, not to mention it 's usually rare to see this kind of economic growth in such a small period of time. The Effects of globalization, with an emphasis on open trade networks, and the Imperial developments of the late 19th century have led to the emergence and rise of India 's market-based economy. This growth has been affected in a very positive way over a span of centuries by a combination of stronger economic developments brought about by a massive increase in the countries labor force and the emphasis on education and self-governance. An exposure to both the Western economic systems during the imperial age until their independence in 1947 and their subsequent involvement in the Asian, Middle Eastern and African trade routes from the late 15th century placed India in an economic equilibrium where they were able to benefit from both worlds and become one of the fastest growing economies.

India the world's seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new

Poverty in rural areas of India is associated with multiple factors. Rural population is primarily depended upon agriculture. Unusual pattern of rain and low standard irrigation system severely affect the incomes of the people living in rural areas. Caste system of India still exists in rural areas where people belonging to lower castes lack the opportunities to grow and subsequently earn

The rapid economic growth trends demonstrated by China and India are currently at the height of debate amongst world leaders and economists. According to “Dancing with Giants: China, India, and the Global Economy”, edited by L. Alan Winters and Shadid Yusuf (2007), these countries are very unique in that their economic patterns of growth continue to increase and sustain momentum over an extended period of time while dealing with growing populations. The fact that these countries have illustrated a sustained pattern of growth means that they are beginning to, or have already shifted the balance of power within the global community; however, many scientists believe that this trend has shown negative side effects within the social and political settings because inequalities within both regions continue to rise. In Dancing with Giants: China, India, and the Global Economy (2007) the author states that, “Chinese and Indian authorities face important challenges in keeping their investment climate favorable, their inequalities levels at intervals that do not undermine growth, and their air and water quality at acceptable levels” (8). In a discussion, I will deconstruct the effects of China and India’s economic growth on social inequalities.

In the book Capitalism: A Ghost Story, Roy (2004) exposes the darker side of India that is signified by capitalism. The country is home to big corporations such as Reliance Industries Limited, Jindal, Tata, Mittal, Infosys, Essar and Vedanta among others. However, several people continue to suffer in the hands of these companies. They have accumulated a lot of resources that only seem to benefit them. Without any doubt, the economy of India is growing very fast owing to the privatization of all the resources. The people who have the resources are the ones who continue having more. For instance, even though the country has natural resources like minerals, it is only those large companies that can benefit. This situation can be attributed to the high corruption levels in the country. The policies made have enabled large corporations to continue accumulating large pieces of land. When certain debates regarding land redistribution are brought up, people are viewed as lunatics for demanding equal rights.

India followed Import Substitution Industrialization policy up to 1991. The major highlights of this policy included significant restrictions on imports (ensured by high tariffs and import control), limited incentives to private sector, a large public sector (with focus on heavy industries) and an overvalued exchange rate. Furthermore, there were restrictions on consumer goods too. Quantitative restrictions such as import licensing and exchange control existed too. All of these policy measures were part and parcel of what is known as “barriers to an economy.” The quantitative restrictions prevented the opening up of the Indian economy. Thus, integration of India with the ‘global village’ was to wait till 1991.

In 1991, when Prime Minister Narasimha Rao agreed to take a loan from the International Monetary Fund to stave off a financial crisis we witnessed the low-point of the Indian economy. At that time, the country had dwindling foreign exchange reserves and was months away from defaulting on its debts. As part of the I.M.F. package, the government passed reforms such as devaluing the rupee, encouraging private sector competition, and deregulating the economy after 40 years of central planning. By opting for market-oriented reforms in 1991, India’s GDP has grown at a rate of 6.6% annually over the past 20 years. As a rapidly emerging economy and a member of the BRICS, we must continue to push our strategy of export led

This was based on the reasoning of lack of industries producing investment goods, which could detain high rates of investment and growth. In contrast with Brazil’s situation, the lack of competition in India created

India has undergone a process of economic liberalization and comes under top 5 fastest growing economies in World over past three decades . The Industrial sector crated abundant wealth over the period of 10 years, yet the growth has trickled down the large population of the nation with lack of access to basic amenities such as sanitary, clean water, health facilities and the list goes on. India is ranked as 135th amongst 187 countries as per the latest Human Development Report. Inspite of India being recognized as global player, the nation is home to largest number of poor, malnourished children, poor access to health, education

Recently, rural advancement has expected worldwide consideration particularly among the developing countries. It has incredible essentialness for a nation like India where dominant part of the populace, around 65 per cent of the individuals, lives in rural or provincial areas. According to the Census of India 2001, out of 1,025 million population, about 77 per cent of the labour force lives in rural areas . Out of the total workforce about 58.5 per cent are engaged in agriculture alone. In such a situation, unless the rural economy is made vibrant in terms of employment, issues of poverty and human development would remain unaddressed.

Economics is the social science that studies the production, distribution and consumption of goods and services and in general the economy includes all of the country's economic system, or any other area, employment, capital, natural resources, industry, trade, distribution, and consumption of goods and services in that region. The economy could also be described as a spatially limited social network where the exchange of goods and services in accordance with supply and demand among participants through barter or through the medium of Exchange using the acceptable values for debt and credit within that social network and a simplified economy shows how the community provides basic needs, there are different ways to measure the economic performance of the country, such as exchange rate and GDP GNP and the securities market and stock market and national debt, interest rates and inflation, unemployment and balance of trade.

Post-liberalization India has followed the mixed economy model with capitalist inclination, and this invalidates a people-oriented development. The path of ‘inclusive growth’ that the Indian economy is supposedly following presents a cocktail of mystery, wonder and despair, one which leaves even the stalwarts bewildered. The experiences from implementation of past policies tell us much of the road ahead in realizing the dream of a developed India, but so far, the journey to inclusiveness is inconclusive.

After getting independence in 1947, the government of India envisioned a socialist approach based on the USSR system to developing the country’s economy. The last decade of the 20th century witnessed a drastic increase in foreign direct investment (FDI), accompanied by a marked change in the attitude of most developing countries towards inward investment. FDI flows have grown in importance relative to other forms of international capital flows, and the resulting production has increased as a share of world output.. FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development during recession. This money has allowed India to focus on the areas that may have needed economic attention and address various problems that continue to challenge the country. The factors that attracted investment in India are stable economic policies, availability of cheap and quality human resources, and opportunities of new unexplored markets. Mostly FDI are flowing in service sector and manufacturing sector recorded very low investments. The investments in service sector enhanced the benefit of flow of funds to the home country. Presently India is contributing about 17% of