Past and current state of the indian economy economics essay
The reform process has completed 17 years. The failure of the basic goods and capital goods sectors really put a question mark on the success of the reform process. The emergence of a negative current account balance in and has again resulted in an adverse situation and India needs caution in this regard.
Usually, the term is synonymous with international integration, the spread of free markets and policies of liberalisation and free trade. Disruption caused by the policy may have dampened GDP growth in the short-term, but it could also prove to have long-term benefits. Period 2: to During this period exports increased at an average rate of 6.
The current account turned positive in Its GDP growth recently dipped to 5. Conclusion: It is a fact that the reform process will not be able to achieve its socio-economic objectives because of excessive private participation in the economy and the private sector is solely guided by the objective of profit maximisation.
Indias economy today
This is a remarkable degree of hubris. The reform measures were mainly directed toward boosting exports as well as to facilitate developments imports mainly capital and intermediate goods as also imports of some basic raw materials which were so vital for increasing industrial production. The age-old problem of planning has been the conflict between growth and distributive justice. Improving the Balance on Current Account: There was a surplus in the current account during and Yet they were not adequate as to wipe out the trade deficit. The main occupations of this sector are agriculture and allied activities. It is against this backdrop that we study the effect of globalisation in Indian agriculture. The emergence of a favourable current account balance during and is, no doubt, a major achievement of the post-reform period. As a result foods prices rose sharply.
At that point, even a government obsessed with its image will have to accept reality. However, the reform process initiated in has been emphasizing the use of the market forces, which naturally attract investment to regions which are more developed in terms of infrastructure—both economic and financial.
It failed to ensure human development whose key indicators are life expectancy, literacy rate, infant mortality rate, death rate and birth rate.
On the other hand, large scale industries like iron and steel, heavy engineering, chemicals, fertilizers, shipbuilding etc.
Essay on indian economy upsc
The current account turned positive in Related posts:. As a result foods prices rose sharply. This created inflation and, thus, was one of the causes of poverty. Have you read? No doubt trade deficit has increased, but the massive increase in net invisibles has helped to reduce current account deficit. The term globalisation was coined during the s to characterize huge changes that were taking place in the international economy, notably the growth in international trade and inflows of capital around the world. The post-reform period of s has witnessed a distinctive trend on the farm front. So, there was a shift of emphasis in trade policy in the second half of the s. Successive governments have set them aside as being politically problematic. Some of the important recent developments in Indian economy are as follows: During up to February , merchandise exports from India have increased 8. It is time the state, instead of withdrawing from investment in agriculture, irrigation and rural infrastructure, strengthened public sector investment in these areas. All of these bottlenecks need to be addressed and they need to be addressed together.
Although India is an agro-based economy, but lot of emphasis has been given on the development of industries both consumer goods and capital goodsservice sector including construction, trade, commerce, banking system etc.
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