Socio Economic Growth Of India

1354 WordsMay 11, 20166 Pages
Inclusive Economic Growth in India After the Soviet Union crashed in the early nineties India opened its markets to the world. Since then, India has taken giant leaps to catch up with the rest of the developing nations. India’s economy decided to skip the manufacturing sector and go straight to the service and financial sectors. By 2009–2010 services (transport, trade, communications, and social services) provided employment for nearly half of the rural non-farm workers (Himanshu 2013). However, experts say this leap and creation of urban areas, has only increased the income inequality gap bringing diversification away from the traditional farm. A rise of information argues that such a growth in inequality could affect the fabric of village society (Himanshu 2013). By the year 2030 half the population of low- and middle-income countries will live in urban areas (Nolan, 2015). The question is whether India is making significant progress towards developing an economy that offers more inclusive economic growth? In the late 1970s India introduced economic liberalization policies that allowed state owned enterprises to be privatized, at the same time granting foreign investors the ability to access these once isolated markets. Since the inception of these new economic policies in 1991, the Indian economy is growing on a remarkably higher economic growth trajectory (Gupta 2015). India’s economic growth rate averaged above 8 per cent per year between 2003 and 2011

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