Abstract:
India is the second fastest growing economy in the world after China. India was able to withstand the repercussion of the global economic crisis. Savings as a proportion of GDP moved up by more than ten percentage points from 22.8% in 1991 to 33.7% in 2010.Investment to GDP ratio also jumped from 26.0% to 30.8%, however expected to declined to 29.5% in 2011 due to rising interest rate. India is in an enviable position among developing countries. Fear of competition is receding - confidence among Indian industries in their ability to compete in the world market. Success of IT is spilling over to manufacturing. India's standing as an economic power in the South Asian region and the world has risen. None of this would have happened but for systemic reforms initiated in 1991.The early burst of reforms in the early to mid nineties made sweeping changes such as Removal of controls in the financial sector, Encouragement to foreign investment and technology, Rationalization of tax structure. Per Capita Income has more than doubled from Rs. 15,826 in 1991 to Rs. 41,129 in 2011; has been increasing at an average annual rate of about 7% since 2004.These have ensured macroeconomic stability and driven the economy towards greater competitiveness. These measures have also helped India in emerging as a resurgent, vibrant and dynamic nation, leading global growth. |
