India has the twelfth largest economy in the world. Among the third world
countries, India has proved itself to be one the best players in the world
economy. The economic condition of India has improved immensely over the
last few decades. Recently many policies have been reformed and some
implemented in order to help the progress and development of the Indian
economy scene. At the moment, the economy of India has been progressing at
the massive pace.
Every Economy in the world stands on four basic pillars. Indian being one
of the largest Economies of the world, too stands on these pillars. These
are GDP, Inflation, Forex Reserves and Current Account Deficit. Topping all
these comes the External Debt which is often used to stabilize the down
going markets. Indian economy is the fourth largest in the world, with a GDP
of $3.63 trillion at PPP, and tenth largest in the world with a $691.9
billion at 2004 USD exchange rates and has a real GDP growth rate of 6.2% at
While the Gross Domestic Production tells about the total development in
terms of total production in various sectors in a year, the inflation in co
relation with the deflation tells about the market indices. The Forex
Reserves counts on the Foreign trade and the currency earned in it while the
Current Account Deficit makes for the total amount which is lacking to meet
the requirements. All these are so adjusted that they make for the total
profit or the growth of the economy. When all these four work in perfect
synchronization, the net result is the growth of Economy or GDP. India too
works on these to make a better Economy.
Some of the Key factors in the growth of the Indian Economy are the broad
spectrum industries, stable parliamentary democracy, independent judiciary,
global mindset of corporate sector and lobbying for globalization. With the
changing perspective, today the Indian Economy is more strong, it has new
players both local and forgien, the buyers market has increased with more
competition, there is liberalized trade facilitating integration with WTO.
All these have put the Indian Economy on a global perspective. With
liberalized financial markets and emphasis on prudential norms the dynamic
nature of Indian Economy is seeing new heights.
But despite of all this growth the Indian Economy is curtailed by creaking
infrastructure, cumbersome judiciary system, dilapidated roads, severe
shortage of electricity, lesser number of schools, lower education, caste
system and reservation system. These are some of the common factors which
inhibit the growth of the Indian Economy. Whatever is being written on
papers is not materializing and even if it is being done in some sectors,
the growth is slow that the work being done is equal to no work.
Indian Economy beginning from the Indus Valley Civilization to the Mayura
age has a reached a point where Oligarchy has become more prominent. The
democracy is losing its point somewhere and the growth of Indian Economy is
showing its good results only in some sectors. There is a lot which needs to
be done, especially from the growth perspective....