Question

What is true about contemporary Indian Economy?​

Answer 1

From 1990s, India witnessed significant changes in the macroeconomic policy regime along the neoliberalism route which has resulted in a weakening of the interventions by the State, in many important economic and social arenas.In this paper an attempt has been made to highlight the major issues of the present contemporary Indian economy as well as some recent debates.

The paper highlights that economic growth is not only important from internal economic and social perspective but also external economic front.

Answer 2

Answer:

               Contemporary Indian Economy

• INDIA is a hotspot for global investors, and even better among emerging markets due to its consistency underscored by its reliance on domestic demand for growth, low global commodity price regime as it is primarily an importer, and its cycle rate reduction.
• The idea of ​​exploring the possibility of manufacturing and exporting with low wages compared to their peers, their high  population growth rate, a reservoir of labor and demand, low fiscal and current account deficits, and their pace of expansion and growth are both current and potential. , presenting the best investment and business returns. However, regulations still limit the ease of doing business.
• However, in a recent testimony, INDIA has greatly improved in its competitiveness and the government is aware of the problems in doing business both abroad and domestically. Central banks must try to control demand when there is no room to increase the supply of goods and services.
• However, a lower interest rate could be good for the supply side  (investment) and also for the demand side (consumption).  If a lower interest rate increases supply or productivity to reduce inflation and not just demand, this should be welcomed.
• Companies employ people who are good for market demand through the multiplier that generates income and taxes to improve human life.
• However, the burden of a large number of poor people should not be underestimated, also due to the high population growth and the unskilled and unproductive workforce.

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