india emerging economic power

8/2/2019 India Emerging Economic Power

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"The biggest change the last decade witnessed was that the

world at large recognised that India can deliver

technologically superior products, competitively.

Indian expertise in IT, pharma and heavy engineering has

been accepted globally.

Trade in goods and services as a proportion of the GDP hasrisen from below 20 percent in 1990-91 to more than 50

percent today


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Foreign investment has risen from negligible levels to more than $60billion per year. Indian companies have gone on to acquire multi-billiondollars worth of companies in the United States and elsewhere in theworld.

Investment as a proportion of the GDP has risen from low 20 percent tonearly 35 percent.

The biggest revolution has, of course, been that in the telecommunicationssector. From just 5 million telephones in 1990-91, India boasts of 750

million telephones today

Indian people has most positive opinion about there economy and itsgrowth path than almost all Eu and Latin american countries And Usa.


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During the last eight years, India has grown between 8 and 9 percent after

factoring our inflation. But this is the growth measured in terms of the real

rupee, the domestic currency.

Taking into account the increase in the value of the rupee against the dollarin real terms, it turns out that the growth rate in India in real dollar has

been a phenomenal 13 percent in the last eight years.

Given the countrys high savings rate, a dynamic entrepreneurial class,

increasingly young population and exposure to the worlds mostcompetitive and innovative suppliers , prospects for sustaining this growth

over the next fifteen years are excellent.


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Challenges

India faces one key challenge: the movement of people out of low-productivityand low-income agriculture into non-agricultural activities has been extremelyslow.

More than 50 percent of the workforce is still in agriculture. Thus, a very large

population now relies on income from a very small part of the GDP and it is thepart of the economy that rarely grows more than 4 percent per year on asustained basis.

The industries that have grown rapidly such as automobile, two-wheelers,engineering goods, petroleum refining, telecommunications, software, finance

and pharmaceuticals are either capital- or skilled-labor intensive.

Labor-intensive industries such as apparel, footwear, light consumer goodsand various processing activities have simply not done well in India.


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Thank you!

india emerging economic power

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