Introduction:
Indian economy bags the seventh position among the other strongest and largest economies in the world. Being one of the top listed countries among the developing countries in terms of industrialization and economic growth, India holds a robust stand with an average growth rate of approx. 7.2%.
The Indian economy has emerged as a robust economic player among the economic giants like-US, UK, China, etc. Even though the growth rate has been sustainable and comparatively stable, there are still fair opportunities for growth. With the growing standards and opportunities in India, it is expected to very soon capture a very dominant position among the others in the world. The characteristic features of the India Economy are discussed below in detail:
1. India has a mixed economy: Indian economy is a true example of a complete mixed economy. This means both private and public sectors co-exist and function here simultaneously. On one side, some of the fundamental and heavy industrial units are being operated under the public sector. Whereas, due to the liberalization factors of the economy, the private sector has gained further enhancements in terms of scope. This makes it a perfect amalgamation of both public and private sectors being operated and supported under a single economic cloud.
2. Newly Industrialized Economy – good balance between agriculture and industrial sector: Indian economy has been a true holder of newly imbibed innovations in the formation of the country’s economy. Earlier, agriculture used to be the prime contributor as industrialization was at a lower edge during the time. However, with the growing time, industrial subsequently took a high tide in the country, making it a very important contributor. Well, the Indian economy keeps both these in good balance. It amalgamates the agricultural outputs towards enhancing the industries and contributing to the growth of the economy together.
3. An Emerging Market: Being a developing country with a great level of economic well-being, India has emerged as an emerging market for the other players. Holding a constant GDP rate even in downfall situations, it has kept its position intact, making it a lucrative spot for the other economies to invest. This has, in turn, also helped the Indian economy exist as a robust economy among the other leaders. India has a high potential with low investments and risk factors, making it an emerging market for the world.
4. A Major Economy: Emerging as a top economic giant among the world economy, India bags the Sixth position in terms of nominal Gross Domestic Product (GDP) and third in terms of Purchasing Power Parity (PPP). These figures are a representation of the Indian economy among the G20 countries. This is a clear indication of the robustness of the Indian economy has gained over decades and emerged as a major economy among the other leading economies on the globe.
5. Fast-Growing Economy: India’s economy is one of the world’s fastest-growing economies globally. India’s economy has emerged as the world’s fastest-growing economy in the last quarter of 2014 and has replaced the People’s Republic of China with a growth rate of approx. 7%.
6. Fast-growing Service Sector: With the growth in the service sector, the Indian economy has also formulated its growth in the service sector. There has been a high rise in growth in the technical sectors like Information Technology Sector, BPO, etc. The business in these sectors has not only added and enhanced the contribution to the economy but has also helped in the multi-fold growth of the country a well. These emerging service sectors have helped the country go global and helped in spreading its branches around the world.
7. Large Domestic consumption: With the escalating growth rate in the economy, the standard of living has grown a lot. This, in turn, has resulted in increasing domestic consumption in the country. With the growing advancements and globalization, the domestic consumption rate within the people of the country is already high. This adds a lot to the Indian economy.
8. Stable macroeconomy: The Indian economy has been projected and considered one of the most stable macro economies worldwide. It’s not just the saying, but the facts too reflect the same. The current year’s survey represents the Indian economy as a “heaven of macroeconomic stability, resilience and optimism. According to the last economic survey for 2014-15, an 8%-plus GDP growth rate has been predicted, with actual growth turning out to be a little less (7.6%). This is a clear indication of a stable macroeconomic growth rate.
9. Excellent human capital: The maximum population that constitutes the human capital of India is young. This means that India is a proud owner of the maximum percentage of youth human capital that is a great indicator of growth. The young population is not only motivated but skilled and trained enough to maximize the growth situations. Creating vital opportunities to expand the business and other economic opportunities, this human capital plays a key role in maximizing the growth opportunities in the country. Also, this has invited foreign investments to the country and outsourcing opportunities too.
10. Technological use is less in comparison to the well-developed economies: India being a growing economy, is in the stage of further growth. Even though the technology and technical usage in the country are good enough, but is really less as compared to the well-developed economies. The other reason behind this is the use of labour-intensive techniques and the slow rate of acceptance to innovation. Even though the capability standard of the country is high, but due to the lack of speed in the transition process, things need time. In the current scenario, the country has grown a lot and is becoming a major technological player among the others in the world.
Conclusion:
These are the major characteristic feature of the Indian economy. India is an active member of various economic groups’ like-BRICS and G-20. Not only does India have the potential in the form of human capital and other raw materials, but it is also technically advanced to support maximum growth in the country. This is a true indicator of inviting foreign investments and creating the best growth situation for both foreigners and nationals.
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