What Are The Factors Involved In Process Of Economic Growth Of Countries?

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The factors involved in process of economic growth of nations have transformed overtime, from savings to trade, foreign investment and human capital base of the country. With opening up of the economies and the formation of multiple agreements among the countries, trade and FDI have become the major medium of accord among the economies. There has been surge in FDI inflows ever since the countries adopted liberalisation policies across the globe. The countries have been looking for policies to attract more FDI by boosting investment climate in their countries, to finance their process of growth and development. The table 1.1 shows inflows of FDI in countries in different income groups. The largest increase in FDI/GDP ratio has been in…show more content…
Textile industry contributes 14% of industrial output and 4% of the total GDP in India. “The country attracted $198.86 million foreign capital in the sector during April-March 2013-14, up 91.41 per cent”, says Business Standard, August, 15, 2014. Textile industry also allows for 100 % FDI under automatic route. The government has come up with Technology Up gradation Fund Scheme, Integrated Textile Parks, Integrated Processing Schemes and Integrated Skill Development Scheme. Chemical sector contributes 16 % of manufacturing GDP and 2.11% of Indian GDP. This sector has estimated size of the market US$ 144 billion and covers 70,000 commercial products. This sector also allows 100% FDI under automatic route besides a few restrictions on industries registered under MSME sector. Strong domestic and export demand have caused growth of the sector. The government has begun policy to setup Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) which is an investment region spread across 250 square kilometres with basic infrastructure for the manufacture of domestic and export related products of chemicals, petroleum and petrochemicals. Consumer goods industry has grown with compound annual growth rate of 10.8% for the period 2003-2012. With 65% of urban market the industry, it allows 100% of FDI in single brand retail and 50% in multi-brand retail industry. Crude steel production has increased at CAGR of 8.2 % between
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