Indian Economy

Indian Economy
INDIAN ECONOMY
India is today one of the six fastest growing economies of the world. The country ranked fourth in terms of Purchasing Power Parity (PPP) in 2001. The
business and regulatory environment is evolving and moving towards constant –improvement. A highly talented, skilled and English–speaking human
resource base forms its backbone.
The Indian economy has transformed into a vibrant, rapidly growing consumer market, comprising over 300 million strong middle class with
increasing purchasing power. India provides a large market for consumer goods on the one hand and imports capital goods and technology to modernize
its manufacturing base on the other.
An abundant and diversified natural resource base, sound economic, industrial and...show more content...
It is the Central Bank of India. It was nationalist on January 1, 1949. Again on July 19, 1969 fourteen big commerce banks were nationalised.
Export–Import Bank (Exim Bank) was established in 1982 to provide funds to exporters and importers. The one rupee note bears signature of the
Secretary, Ministry of Finance Govt, of India, whereas the remaining notes bear the signature of the Governor of the Reserve Bank of India (RBI).
The main function of Reserve Bank of India is to control the monetary policy of the country and exchange rate of Indian currency. Awadh
Commercial Bank was the first wholly nutritional standards of daily caloric intake of 2400 calories. Timercial bank which was established in 1880.
The Punjab National in rural e a 2100 calories per person in urban areas are said to H bank was established in 1894. Indian Life Insurance Corporation
was living below the poverty line.
Taxes–
Taxes can be levied either directly or indirectly.
Direct Taxes–
Income tax and corporation tax are two main direct taxes.
Indirect Taxes–
Central excise duty and customs duty are two I main indirect taxes.
Bank Rate–
It is the rate of interest charged by the Reserve bank of India for lending money to commercial banks.
Deflation–
A state of decrease in money circulation resulting ir Prices and unemployment.

Black Money–
It means unaccounted money, concealed income undisclosed wealth. In order to evade taxes some people falsify their accounts
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Economic Development in India
ECONOMIC DEVELOPMENT IN INDIA: THE ROLE OF INDIVIDUAL ENTERPRISE (AND ENTREPRENEURIAL SPIRIT)
Anil K. Lal* and Ronald W. Clement**
The Indian economy provides a revealing contrast between how individuals react under a government–controlled environment and how they respond to
a market–based environment. Evidence suggests that recent market reforms that encouraged individual enterprise have led to higher economic growth
in that country. India can generate additional economic growth by fostering entrepreneurial activity within its borders. To pursue further the
entrepreneurial approach to economic growth, India must now provide opportunities for (1) education directed specifically at entrepreneurial skills, (2)
financing of entrepreneurial...show more content...
Based on the successful experience of the former Soviet Union, many economists and policymakers concluded that, particularly in a poor country,
planning was essential for the efficient allocation of an economy's resources (Panagariya, 1994, p. 194).
1
The history of U.S. business has shown how the pursuit of self–interest by individual economic agents has led to benefits for the larger society.
Consider the well–known example of Henry Ford's introduction of assembly line production. This technological advancement led to a significant
increase in productivity at Ford Motor Company. Indeed, despite paying higher wages to his workers, Ford could still produce automobiles at a much
lower cost and pass on part of that lower cost to consumers in terms of lower prices.
82
Asia–Pacific Development Journal
Vol. 12, No. 2, December 2005
The governments in these newly independent nations assumed a significant role in economic development. They sought to quickly and substantially
raise the standard of living through directed and controlled economic development. Apart from everything else, these developing countries invested
heavily in education to promote literacy and to ensure an adequate supply of technical manpower to meet their growing needs. Further, these previously

colonized nations did not want to

Introduction Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization,
Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series
of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient. With the onset
of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of
economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over
the last decade...show more content...
The Department has also strengthened investment facilitation measures through Foreign Investment Implementation Authority (FIIA). Non Resident
Indian Scheme the general policy and facilities for foreign direct investment as available to foreign investors/ Companies are fully applicable to
NRIs as well. In addition, Government has extended some concessions especially for NRIs and overseas corporate bodies having more than 60%
stake by NRIs Throwing Open Industries Reserved For The Public Sector to Private Participation. Now there are only three industries reserved for the
public sector Abolition of the (MRTP) Act, which necessitated prior approval for capacity expansion The removal of quantitative restrictions on
imports. The reduction of the peak customs tariff from over 300 per cent prior to the 30 per cent rate that applies now.пЂ Wide–ranging financial
sector reforms in the banking, capital

Essay on India China Economic Growth
ESSAY ON CRITICALLY EVALUATE THE MAIN CATALYSTS TO GROWTH IN CHINA AND INDIA.
India with about 1.2 million populations and china with about 1.3 billon population are two big demographic and emerging countries in the world
.Over a past few decade IndiaГўв‚¬в„ўs combination into the economic has been accompanied by remarkable economic growth (World Bank
2011Г‚В¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). IndiaГўв‚¬в„ўs total
GDP (gross Domestic Product) growth was 5.5% in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India
poverty has been decline from 37.2% in 2004 to 29.8% in 2010 (world bank 2011).The major economic growth sectors...show more content...
ChinaГўв‚¬в„ўs domestic savings went from around 23 per cent of GDP in 1960 to 43 per cent in 2002. Both countries open the door and increased
their shares of trade (Chakrabarti,

The Economic Growth Of India Essay
Introduction
India has experienced lopsided growth across its major sectors especially after the reform process have been initiated in the early 1990s. Studies show
that if the pre–reform period is compared with the post–reform period, economic growth has definitely picked up in India. Given the structure of the
economy and the state of human capital availability reforms have led to the increase in share of the services sector at the expense of industrial and
agricultural sectors. On the other hand number of people living below the poverty–line has also come down during the post–reforms period. Problem is
most of the studies showed inequality in income distribution have actually increased in the post–reforms period.
West Bengal, with its broad customer base, rich mineral resources and large talent pool, could emerge as one of the leading states to drive the next
phase of industrialization in the country. The state is a gateway to East and North East, the region that produce 18.38% of India's GDP. Being
strategically positioned for bilateral trade with Bangladesh, Nepal, Bhutan, Myanmar and ready access to South East Asian countries, over and above
the domestic market, West Bengal enjoys a broader market for its products. A strong industrial base would also, in a way, help the state economy to
make a natural transition in its development quest from being primarily agrarian to industry driven, moderating the influence of lopsided growth
towards services on income

Essay on India China Economic Growth
ESSAY ON CRITICALLY EVALUATE THE MAIN CATALYSTS TO GROWTH IN CHINA AND INDIA. India with about 1.2 million
populations and china with about 1.3 billon population are two big demographic and emerging countries in the world .Over a past few decade
India's combination into the economic has been accompanied by remarkable economic growth (World Bank 2011В¬).India is having the 3th position
on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). India's total GDP (gross Domestic Product) growth was 5.5%
in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India poverty has been decline from 37.2% in 2004 to
29.8% in 2010 (world bank 2011).The major economic growth sectors...show more content...
But decline started in the 19th century instead of that they managed to lead the world economy since last three decades. Since 1980 the GDP (gross
domestic product) of India and china increased at annual rate by 6% and 10 % (Enrico & Marcello, 2011). There are the lots of factors which are
playing hidden role on the economic development in china and India. According to World Investment Report UNCTAD, 1994 following reasons are
playing role on development in both countries Capital investment. , advanced technologies, highly skilled labour , transportation, communication and
infrastructure development, low tax rate ,stable and supportive political and social institutions favourable regulatory environment. However, China's
current growth miracle is increasing by total factor productivity (TFP), Capital accumulation etc.India's growth miracle is in the race of development
because private business is increasing rapidly. There are lots of private forms like Tata, reliance industries, Aditya Birla, Essar and many more
(Goldman Sachs,2011).However, China's and India's economic growth history starts after economic reform in both countries. Economic Liberalization
is the key component which helped both countries to develop economy. China's evolution of economy growth began with socio – political, economic
and cultural reform in 1978 under the leadership of Mao Zedong and Deng Xiaoping, It was mainly focused on enterprises development, private
business, foreign

The Economic Growth Of India Essay
INTRODUCTION
The economy of India is based on a sound financial system that helps in accelerating production, capital and economic growth of the country. One of
the main objectives of every financial system of modern economy to accumulate savings and to develop saving habits among the people. It also helps
the saving to allocate into productive usage such as trade and commerce. The efficient utilization and allocation of the savings helps in increasing the
economic growth of the country. A well organised financial system also helps in the industrial expansion. India is regarded as one of the big emerging
market economies by the World Bank along with china, Indonesia, Brazil and Russia. There has been tremendous financial development in India in the
year 1990. It is imperative to know that in what manner the financial development has taken place in India and what initiatives should be taken by the
country to emerge as a country with efficient financial sectors and markets.
HISTORICAL EVOLUTION OF FINANCIAL MARKET The financial system of the country is the outcome of its own peculiar historical evolution.
The continuous interaction between the players of the financial system and public policy interventions has given birth to the evolution of the financial
system. India began with the Central Bank and Reserve Bank of India and entrusted upon them the duty of regulating the banking sectors, Ministry of
finance were given the responsibilities of regulating the other financial

Impact of Tourism on Indian Economy
Market Survey
By: Dr C. VETHIrAJAN
IMPACT OF TOURISM ON INDIAN ECONOMY
Tourism can generate maximum employment opportunity because of a large number of subsidiary industries.
September 2008 and a 3.3 per cent growth in passenger traffic through September. The negative trend intensified during 2009, exacerbated in some
countries due to the outbreak of the AH1N1 influenza virus, resulting in a worldwide decline of 4 per cent in 2009 to 880 million international tourist
arrivals, and an estimated 6 per cent decline in international tourism receipts.
Definition of tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organisation defines tourists as people who "travel to and stay in
places outside their...show more content...
Impact of India's economic growth on tourism
India is currently enjoying an economic boost and a successful financial system in place in our country has helped to build the image of brand India.
Some economists credit success of the Indian financial system to the income generated by the tourism segment, movements across the crosssection of
rising business opportunities, opening up of agricultural and educational sectors, and novel and attractive packaging for brandbuilding of India, which,
in turn, have benefited the travel industry as well. Besides this, strategic planning of excursion packages, eco–tourism, sports events that bring the
spotlight on India and greater patronage by greater number of MNCs heading to our shores have contributed to the growth of the Indian economy and
thereby Indian tourism. The World Tourism Organisation reports that as many as 698 million people traveled to a foreign country in 2000, spending
over $478 billion while on tour. If India too had a share in these results, then surely the impact of the Indian economy as a contributor to the rising
world economy and on tourism cannot be ignored. More of free spending of disposable incomes, opening up of markets and better scope for
industrialisation and earning opportunities have led the way for India's economy to successfully launch the enhanced tourism sector.
JUne 2010
Growth of tourism in India

In recent years, tourism in India has

Indian Economy After Independence : India
India is rich in natural resources and labor which has helped India progress after attaining independence from British rule in 1947. The purpose of this
research paper is to trace the Indian economy after independence. India is the largest democracy in the world with a stable democratic government.
Recently, India has elected a new prime minister, Narendra Modi who took office in the year 2014. (India Today). The new government in India is
credited with reviving the economy and strengthening India's foreign policy. Corruption, poor infrastructure, and economic shortages are a drag on
development, but with lower global oil prices, the economy has been sustaining a growth rate of about 7 percent. (Finance. Yahoo) furthermore, Modi
has opened the defense and insurance sectors to private investment as well making the government forces stronger and advancer. India's growth is
below potential because of the corruption in the government. India is set to emerge as the world's fastest–growing major economy by 2025 ahead of
China, as per the recent report by The World Bank. However, the inconsistent policies make it harder for the nation to progress economically as well as
politically. This paper will analyze the current growth in the economy of India and the outlook for the nation in the longer term.
The Indian economy has been a journey of evolution starting form agriculture and farming to heavy industrialization and transportation. Central
government planning's led to more

Indian Economic Environment
THE INDIAN ECONOMIC ENVIRONMENT
Companies and their suppliers, marketing intermediaries, customers, competitors, and publics all operate in a macro environment of forces and trends,
increasingly global, which shape opportunities and pose threats. These forces represent "non–controllables", which the company must monitor and to
which it must respond.
The beginning of the new century brought a series of new challenges: the steep decline of the stock market, which affected savings, investment, and
retirement funds; increasing unemployment; corporate scandals; and of course, the rise of terrorism. These dramatic events were accompanied by the
continuation of existing trends that have already influenced the global landscape....show more content...
10,000. Income distribution of households in India has been changing significantly over time. Households belonging to the lower income segment have
been steadily declining over the years, and the middle income households have been showing an increase. These are the results of economic growth.
The NCAER (_) has classified Indian consumers into five categories ––– destitute (annual household income of Rs. 16,000; not active participants in
market exchange for a wide range of goods), aspirants (annual household income of Rs. 16,000–22,000; new entrants into the consumption systems due
to increase in their real income), climbers (annual household income of Rs. 22,000–45,000; have desire and willingness to buy, but have limited cash at
hand), consuming class (annual household income of Rs. 45,000–215,000; households that form the majority of consumers; have money and are
willing to spend), and the rich (those who have money and own a wide range of products). The patterns of income distribution in urban and rural areas
also vary.
SECTORS–
Industry and services Industry accounts for 28% of the GDP and employ 14% of the total workforce. However, about one–third of the industrial labour
force is engaged in simple household manufacturing only. Economic reforms brought foreign competition, led to privatization of certain public sector
industries, opened up sectors hitherto reserved for the public sector and led to an

Indian Economic History Essay
ECON345
The Dragon and the Elephant: India and China in the Asian Century
1
Essay Topic No 1
"It is the context and circumstances prevalent in any nation that should determine its policies and strategies of growth" (Mahtaney, 2010, p. 159).
Illustrate the truth or falsehood of this statement with reference to either India or China
_____________________________________________________________________
"An ounce of practice is worth more than tons of preaching"
(Mahatma Gandhi, 1946).
Economic thought is an ever–adapting philosophy, which has been 'preached' by many differing schools of thought throughout the centuries. In this
current global economic context, the majority of worldwide economic strategies and polices...show more content...
For example, it is among the most industrialised nations of today which leads the world in the Information and
Technology industry (IT), with their 350,000 IT and engineering graduates each year, and yet the majority of it's Gross Domestic Product (GDP) is
comprised from the agricultural sector where in 1991 it equated to 30% of all GDP (Rudolph, 1987, Table
One, p. 5). The rural sector of India remains vital today as 70% of the total Indian population dwell in either small rural villages or farms (World
Hunger and Poverty
Facts, 2013). India has therefore managed to combine its impressive economic achievements, which can match that of the developed world, whilst
continually facing humanitarian issues present in developing nations. This conclusion suggests that economic development does not necessarily have a
correlation with human development. Until recently, a common view of development referred to rising income levels and overall economic growth of
a country. However, in recent years a shift towards focusing upon humanity issues and circumstances rather than monetary concerns reflects the new
definition of a nation's development, which can be measured by the Human Development Indicator (HDI) produced by the United Nation
Development Programme in 1990. Discussions on the 'goals of development' now involve emphasizing the reduction of poverty, rather than raising the
average levels of income per capita (Anand & Ravallion, 1993, p. 133).

Indian Ocean Trade Research Paper
The Indian Ocean has always been a power trading region, a passageway between regions of the world that enfluenced the spread of languages,
religion, and even people along with econmic views and technology. During the rise and fall of important empires, trade routes have changed and
domination has changed hands plenty of times over history. While the goods traded have stayed about the same, the traders and the powers behind
them changed from 7th to 17th century. The spread of many things such as culture and religion made its way through various parts of the trade
network. The Persians and the Arabs controlled trade at this time which helped spread their culture and religion in different parts of the world because
their many trade ports that people were required to pass through. Both the Arabs and Persians were Muslim so they easily spread their Islamic belifes
to people who were willing to listen. While this was going on indain merchants bright Brahmin priests and Arbic merchants bright scholars to spread
knowlage and logic, and although it wasn't as promnate christans sent out missinaries as well. Merchants spread their cultures to the foreign lands they
...show more content...
China produced silk, porcelain, and tea, while East Africa sent out ivory, gold, and slaves. Merchants found new economic practices such as using
credit and the uses bills of to exchange. The Chinese were first to use this practice, then it spread to many reigons of the world. Many port cities
became important trade centers, such as cities of Indian, Southeast Asia, and, several European cities created the Hanseatic League to counter Italian
control of sea trade. Trade became much more important in the economy of the empires and cities in the Indian Ocean Trade and even changing many
economic practices because of strong dependents for foreign

Indian Investment And Trade : India Essay
Indian investment and trade
India is the second–most populous country with over 1.2 billion people which located in South Asia. India is the world's seventh–largest economy
based on nominal GDP and is the third–largest purchasing power parity. Following market–based economic reforms in 1991, India became one of the
fastest–growing economies country and began to implement export–oriented foreign trade policy. However, before the reform due to the long–time of
the implementation of Inward–looking import economic development strategy, the domestic market is highly protected in India which lead to the slow
development of India 's import and export trade and stay in the trade deficit situation for a long time. As well as the contribution of foreign trade to
GDP is low, ultimately affect the Indian economy development speed. Now, it is one of the most attractive country of the BRIC markets, which also
includes Brazil, China and Russia. Sino–India trade relationship began in 1951 and start rapid growth in the 90s, now India has become the biggest
trading partner of China in the area of South Asia. In recent years, Indian foreign trade growth is slow which influenced by the factors such as the
world economic situation, the depreciation of the rupee. However, due to the import growth rate is higher than the exports has led India's trade deficit
increase. According to the Indian Business Information and Statistics Department of the Ministry of Commerce of India, the trade of goods

Swot Analysis of Indian Economy
SWOT Analysis of various sectors of Indian Economy.
The India economy, which is the 9th largest in the world in terms of nominal GDP, can be broadly classified into three sectors: 1) Primary Sector or
Agriculture Sector, which contributes about 15% to the GDP and employs around 57% of the total workforce. 2) Secondary Sector or Industry sector,
which contributes about 28% to the DP and employs around 14% of the workforce. 3) Tertiary Sector or Service Sector, which contributes the
maximum of 57% to the GDP and employs around 29% of the workforce.
SWOT analysis of Agriculture Sector:
Strengths : – * The favourable Climate and terrain of the Indian sub–continent makes it suitable for producing a variety of crops. *...show more
content...
Threats:– * More and more of the agricultural land is being taken up to meet with the demands of the housing and industrial sector, thereby reducing
land under cultivation. * With the increase in the purchasing power of the Indians, the packaged food industry is gaining importance in the Indian
market, especially in the cities and among the youth. * Some of the government policies like MGNREGA, is diverting the farm labour to other
employment avenues, which could affect the agriculture adversely as it depends heavily on manual labour. * Stiff competition from the international
markets, if India opens up the trade barriers in the agriculture sector.
SWOT analysis of Industrial Sector:
Strengths:–
* With over half a billion population in the age group of 25–60 years, the industrial sector enjoys a competitive labour market. * Availability of natural
resources, skilled and cheap manpower, liberal national policies provide the environment for industries to thrive.
Weaknesses:–
* Due to India being a democratic country and a mixed economy, the industry has to adhere too many of the protectionist policies of the government,
which affects the industry adversely. * The complex labour laws and other political barriers, prevents the industries to work at the best of their
efficiency, thus effecting productivity.
Opportunities:– * With the rise in the incomes of the Indians, especially the Indian middle

Essay On Growth Of India
spirations of its young population. India is one of the youngest nations in the world where the ratio of youth is higher in its population, with more than
54% of the entire population under 25 years of age and over 62% of the population inside the working age group (15–59) in According to the census
2011India}. The country's population pyramid is anticipated to bulge across the 15–59 age groups over the next decade. This demographic advantage is
predicted to last only until 2040. A World Bank report states that India is one of the few countries where working population continues to grow till
2050 [7]. With an annual addition of 9.25 million jobs per year, over 37 million jobs are expected to be created from 2012–13 through 2016–17 [8].
...show more content...
There have been efforts on the part of the state and Centre government through Ministry of Rural improvement to skill and train youths under diverse
government schemes. However, most of those schemes are restrained to the youths beneath Poverty Line (BPL). There should be equal opportunities
for all the people residing in rural areas. Every job aspirant should be given equal importance and would be given training in soft skills to lead a
proper and decent life. For the Balanced growth in all the sectors the Goal of national policy and programs on skill improvement have has to
diversification of economic activities, minimizing the dependence of rural households on agriculture and bringing approximately a sizable increase in
the share in both output and employment of allied activities, rural industries, business and provider components of the agricultural economic system.
To bring about a fast and sustainable economic development thru diverse reforms, the rural development initiatives should sharply cognizance on
human's participation and rural corporations as the key attributes for their success followed through equally important elements, idea of integrated
development, growth center technique, planning process technique, communication system to

The Impact of Economic Reforms on Industry in India: A Case Study of the Software Industry
N. R. Narayana Murthy
The Indian economy, in the last decade, transitioned from an inward looking, closed economy, to a liberalized,export–oriented one. The software sector
witnessed unprecedented growth, with exports growing at a compounded annual growth rate (CAGR) of around 45 percent and domestic software
sales at around 35 percent. In fact, before 1991, the Indian software sector was adversely affected by the restrictive economic policies. Thus, this sector
provides an appropriate case study on how liberalization of the economy reduced friction to business and accelerated growth.
Growth of the Indian Software Services Industry The...show more content...
In fact, the number of overseas offices of Indian information technology (IT) companies increased from 167 in 1995 to around 750 today. Infosys's
overseas offices increased from 2 in 1992 to 31 in 2002.
Subsequent to the reforms, multinational companies were allowed 100 percent ownership of subsidiaries in India. This eased their entry; IBM,
ORACLE, SAP, Microsoft, and Sun have since established presence in India. This created intense competition for talent. Indian software companies,
under competitive pressure, adopted world–class quality processes, tools, and methodologies. Further, they invested in infrastructure and data
communication facilities.
Duties and tariffs were reduced, and the tax structure was simplified and rationalized. Average tariffs fell by 70 percent between 1991 and 2000.
Wealth tax is now 1 percent, and estate tax is abolished. The corporate tax rate was reduced from 45 percent in 1992 to 36.75 percent in 2002. Further,
import procedures were simplified, and most items were brought under the Open General License Scheme. This facilitated their free import. In
addition, duty on software was reduced to zero.
1.3 Post–1991: The Reform Process Continues
The reform process in India has thus benefited the nation tremendously and is now irreversible. Successive governments have continued this process,
irrespective of their political affiliations. Some of the steps, which carried the reforms further, are discussed later.

1.3.1

вЂњRole of Fdi & Fii in Indian Economic GrowthвЂќ
A PROJECT REPORT ON "Role of FDI & FII in Indian Economic Growth" SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST
GRADUADTE DIPLOMA IN MANGEMENT (Approved by AICTE, Govt. of India) (Equivalent to MBA) ACADEMIC SESSION 2008– 2010 [pic]
Under the guidance of : Submitted By: Dr. Tapan Kumar Nayak Gagan (61) Associate professorKarun Dev (73) IMS Ghaziabad Kush Dixit (77)
...show
more content...
Apart from helping create additional economic activity and generating employment, foreign investment also facilitates flow of technology into the
country and helps the industry to become more competitive. The FDI & FII mantra is considered an all–purpose panacea for the ills of the Indian
economy and society. It has become routine for our finance ministers to "showcase" India in various international forums and exhort the global captains
of industry and commerce to come to India. We here want to know about the far–reaching implications of FDI in our economy and, particularly, how it
can stifle economic growth. Fortunately India's economic growth over the last decade and a half has primarily been driven by savings in the economy,
especially by households. Housewives from middle–class homes should be given due credit for this. If we want to grow at 10 per cent and if our
capital–output ratio is 3.5, we need investment at 35 per cent and, if our savings rate is 28 per cent, then the gap has to be met by the investment. This
is, to start with, spurious since the measurement of the capital–output ratio is not reliable and definitely not applicable to our service sector, which
makes up nearly 60 per cent of the economy

India 's Development And Growth Essay
Background: India is one of the most popular countries in the world. Geographically, India is located at the south of the Asian continent. India's
development and growth has been one of the most significant accomplishments in recent times. India neighboring countries include Pakistan, Nepal,
Bangladesh, Sri Lanka, Myanmar, and Bhutan. The size of the population in India is 1,266,883,598 and the Territorial size of the country is 3, 287,
263 sq. km (The World Factbook, 2016). The prime minister of India is known as Narendra Modi who is the leader of the majority party in Lok
Sabha and is currently the head of the Council of ministers in India. India's political party that is in power right now is Bharatiya Janata Party. The
Bharatiya Janata Party, was first founded by Shyama Mukherjee in 1953 with the main purpose of safeguarding the Hindu interests in India (The
World Factbook, 2016). India is becoming more of an open market economy. While most emerging nations were have struggled mightily against the
strong U.S. dollar and falling commodity prices, India continues to lead. The view for India's long–term growth is positive due to the staggering young
population and corresponding low dependency ratio (World Factbook, 2016). For example healthy savings, investment rates, and increasing integration
play a role in the global economy. India being the 4th largest economy in the world, India has bought about a landmark agricultural revolution that has
changed the country

Key Drivers Of India 's Economic Growth
II.Problem Statement
SMEs (Small and Medium enterprises) are one of the key drivers of India's economic growth. Over the years a large number of small and medium size
companies have grown in the market. Small and Medium Enterprises (SMEs) have been contributing so much towards the GDP of India. With their
emergence and huge potential, the government of India launched regulated trading platforms for the SMEs, which allows them to get listed without
bringing an IPO. The stock exchanges for these enterprises were introduced so that these firms can do better in financing activities for themselves.
Of course, there is an option of adding debt, which also helps improve the overall return on equity, but the cost of raising debt for SMEs is relatively
higher. High interest expense does not look very good on the profit and loss statement of a growing company. Thus, in order to fund the next stage of
growth without excessive interest cost burden, companies look to access equity funds via capital markets. This is where listing on an exchange comes
into the picture. The research would include the implications of the introduction of the BSE and NSE SME stock exchanges how well they are
performing. Also, what is the response from the SME sector.
III.Relevance of the Study
Indian economy is largely dependent on its tertiary sector and the manufacturing sectors are struggling with a meagre share in country's GDP, it is
essential to provide support to the manufacturing sector and thus the

Indian Economy

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