write an article on economic growth rising day by day
Answers
Answer:
The economy of India is characterised as a developing market economy. It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the IMF, on a per capita income basis, India ranked 139th by GDP (nominal) and 118th by GDP (PPP) in 2018. From independence in 1947 until 1991, successive governments promoted protectionist economic policies with extensive state intervention and regulation; the end of the Cold War and an acute balance of payments crisis in 1991 led to the adoption of a broad program of economic liberalisation.Since the start of the 21st century, annual average GDP growth has been 6% to 7%,and from 2014 to 2018, India was the world's fastest growing major economy, surpassing China.Historically, India was the largest economy in the world for most of the two millennia from the 1st until 19th century.
Answer:
India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita incomes and a reduction in absolute poverty. Per capita incomes (measured in US $) have doubled in 12 years
But India has one third of all the people in the world living below the official global poverty line. It has more poor people than the whole of sub-Saharan Africa
Per capita income is $1,270, placing India just inside the Middle Income Country category
India's per capita income is 1/20th that of the UK
Life expectancy at birth is 65 years and 44% of children under 5 are malnourished. The literacy rate for the population aged 15 years and above is only 63% compared to a 71% figure for lower middle income countries.
Despite a strong attempt to become an open economy, exports of goods and services from India account for only 15% of GDP although this will rise further in the years ahead
India runs persistent trade and fiscal deficits and has suffered from high inflation in recent years
India's growth rate has slowed and high inflation is a constraint on competitiveness and growth.
Investments by Indian businessmen abroad have overtaken foreign direct investment for the first time – reflecting a lack of confidence among Indian entrepreneurs about their home economy.
Explanation:
Development path
India has followed a different path of development from many other countries. India went more quickly from agriculture to services that tend to be less tightly regulated than heavy industry. That said there are some emerging manufacturing giants in the Indian economy.
Supply-side factors supporting Indian growth and development
A fast-growing population of working age. There are 700 million Indians under the age of 35 and the demographics look good for Indian growth in the next twenty years at least. India is India is experiencing demographic transition that has increased the share of the working-age population from 58 percent to 64 percent over the last two decades.
India has a strong legal system and many English-language speakers – this has been a key to attracting inward investment from companies such as those specialising in IT out-sourcing.
Wage costs are low in India and India has made strides in recent years in closing some of the productivity gap between her and other countries at later stages of development.
India's economy has successfully developed highly advanced and attractive clusters of businesses in the technology space – witness the rapid emergence of Bangalore as a hub for global software businesses. External economies of scale have deepened their competitive advantages in many related industries.
Growth and Development Limiters for India
Despite optimism for India's prospects for economic growth and development, there are a number of obstacles which may yet see growth and development falter.
Poor infrastructure - notably in transport and power networks
Low productivity and weak human capital. A high % of workers are low-skilled and work in small businesses
High inflation and a persistent trade deficit
Low national savings as a share of GDP, low share of capital investment
Relatively closed economy - India is a net importer of primary products