India and its economy essay
However serious macroeconomic and debt payment crisis forced the government to implement radical policies in the form of the Economic Reforms of Since development of power, transport, communication involves lumpy investment, has long gestation period and the returns accrue mainly in the form of external economies, the private enterprise is not attracted to build this infrastructure.
This was due to the substantial increase in consumption expenditure under the fiscal stimulus measures to keep the growth momentum which caused drop in public saving rate to 1.
Several people, especially the labourers, lost their jobs. Some of the recent initiatives and developments undertaken by the government are listed below: In Februarythe Government of India approved the National Policy on Software Products —to develop the country as a software hub.
Essay on indian economy pdf
In order to ensure an upward graph, it came up with the following policies: Ample means of livelihood to the citizens of the country. However, in modern monetary economies, the setting is quite intricate. Nurkse laid great stress on this new theory of consumption and saving. Thus in the seventies, the reliance on GDP growth alone to solve the problems of poverty and unemployment was challenged. It consists of towns and cities. Besides, Arthur Lewis proposed a model of growth of a dual economy with surplus labour in which he emphasized industrialization of underdeveloped countries by mobilizing disguisedly unemployed labour in agriculture or subsistence sector and ploughing back of profits so earned for further capital accumulation and industrial growth. Besides, due to slack world demand growth of our exports has slowed down and further rise in world oil prices has caused a large current account deficit in our balance of payments in and Besides, in view of the low labour intensity of technologies imported from abroad, the need for development of appropriate technologies suited to the factor endowments of developing countries was highlighted. Pharmaceutical industry, iron and steel industry, chemical industry, textile industry, automotive industry, timber industry, jute and paper industry are among some of the industries which have contributed a great deal in our economic growth. State-owned enterprises were to be privatised. It was, however, adopted not as a solution to deteriorating Indian economy but to enable itself to get further foreign exchange loans from World Bank as its foreign exchange reserves were reduced to mere 3 weeks outflow. Net employment generation in the country reached a month high in January Likewise, the availability of adequate irrigation facilities is necessary to raise agricultural output. They have stimulated and are currently stimulating the economy. Restricting the Production of Luxury Goods: But the most effective method to curtail consumption of the affluent is to suitably restrict the production of luxury goods and a much high priority should be accorded to the production of basic consumption goods needed by the masses.
Therefore, the Government in the developing countries should give high priority to develop the facilities of providing adequate credit and finance for the development of industry and agriculture. Chronic and long-term unemployment exists in the developing economies because due to higher population growth relative to capital formation it has not been possible to absorb the increasing number of workers in productive employment resulting in large-scale unemployment in developing countries.
The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 per cent. A number of new large scale as well as small scale industries have been set up in the recent times and these have also proved to have a positive impact on the Indian economy.
The reason is not that they are too poor to save but that they are adopting better ways of living seen among the upper classes.
Write an essay on growth of indian economy
If modern civilization stands for all this and I have understood it does, I call it satanic. Keynes remained occupied with the problem of involuntary unemployment and depression as severe depression causing huge unemployment took place in in the industrialized countries. Their knowledge is extended, their imagination stimulated, new desires are aroused, the propensity to consume is shifted upward. Thus the small rate of saving in poor developing countries may not be altogether due to low level of real income. Increase in Bank Deposits The circulation of the old currency notes was banned with immediate effect. Small and tiny scale industries include clothes, candle, poultry, match box, handloom, toys etc. Inflation was to submit to stabilisation programmes. Conclusion We have a pool of talented and creative youths who are hard working and ambitious. It may be further noted the rapid growth of some new sectors such as Telecom and IT which hardly existed before contributed a good deal to rapid economic growth since Some of the major challenges faced by the Indian economy are corruption, illiteracy and huge cultural, social and economical disparity among its states. Today economic development is interpreted as not only in more growth in Gross Domestic Product GDP but also in terms of good quality of life which, according to Prof. If wants of the people go on multiplying under the influence of demonstration effect, the demand for luxuries or non-basic consumption goods will increase. The underdeveloped countries will need a high rate of growth for quite some time to come. Transition economists agree to a number of things involved in the transition process, that countries in this category must embark on, to ensure full transition to a market economy.
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