Indian economy and its basic features economics essay

In an under developed economy, low capital formation is considered as one of the major hurdles of rapid economic growth. Gross domestic capital formation is composed of the components-gross domestic saving and the net capital inflow from abroad.

Indian economy and its basic features economics essay

Essay on Effects of Globalization on Indian Economy! It means to open the Trade and Economy for the international players. In other words, every manufacturer or producer of goods can compete for sale of their products without restrictions or without any imposed control.

For example, think of a small village market or meal where all are free to come and sell their products at their desired price, irrespective of places from where they come.

There are no restrictions on control on their products or the prices. This is the globalised trade. Any country can participate to set up, acquire, merge industries, invest in equity and shares, sell their products and services in India. Therefore, globalisation should not be considered in isolation, but should be considered in totality with liberalisation of the industrial policy towards lifting of trade control and restrictions, influence of trade block and simultaneous privatisation.

Global market treats the world as a single market. With the advent of information technology and its strategic application, the world is focussed as a global village and all traders are therefore globalised.

The Earlier pre s concept: Before s India followed a patch of restricted trade. Such restrictions were that certain products would not be allowed to be imported as they were manufactured in India.

For example, General Engineering goods, Food items, toiletries, Agricultural products etc. Some other kinds of products which were produced in restricted quantity in the country or are expensive and categorised as luxuries were subjected to heavy import duty to make them costlier in order to dissuade flow of foreign exchange and give protection to local producers.

In the s due to change in world economic order and due to heavy pressures from rich countries like USA, Japan, European countries dominating the WTO World Trade Organisation having members, established in and IMF International Monetary Fund and World Bank engaged in development financing activities, the developing and the poor countries all over the world were forced to open their trade and market and allow foreigners to share their major chunk of a business.

Brief Essay on Indian Economy ( Words)

Thus, India first started the process of globalisation and liberalisation in under the Union Finance Minister, Shri Manmohan Singh.

The first 5 years in globalisation did not yield appreciable results. The coming of Multinational cold drinks manufacturers like Coke, Pepsi, and others like Mc.

Due to further liberalization of trade and the privatization, the late s showed the effect to globalisation by the coming of giant car manufacturers like Daewoo Motors, Ford, Honda, Hyundai which resulted in availability of varieties of cars and reduction of domestic car prices.

The resultant effects were tremendous boost to industrial sector economy. The price level came down due to cut throat competition and Indian consumers are so far happy. Recently in Maythe Indian Government also opened the defence sector towards globalisation and privatisation.

Globalisation, but for whose benefit? Due to globalisation and liberalisation, the Indian market is flooded with quality foreign products, affecting the Indian industries adversely.

This has also resulted in the loss of jobs to many poor workers. Toys, bicycles and motor bikes from China, soaps and toiletries from Indonesia and Malaysia, cheese and fruits from Australia and many more await the Indian consumers with the lifting of trade restrictions. Globalisation has turned out to be a bonanza for consumers but a grave for Indian producers, especially small-scale sectors, because of their age-old technology and financial bottlenecks to update their machines and technology.

Indian economy and its basic features economics essay

The import of edible oils, grains at lower prices have affected the Indian farmers heavily. Now farming is no more profitable because of marginal remuneration.

Indian manufacturers are no longer able to compete with their global counterparts. The closing of industries and manpower lay off have become very common. Let us study the sector wise effects: Due to globalisation, the availability of study books and information on the internet or the World Wide Web www have increased tremendously.To know and understand the nature of Indian economy, it is very necessary to have a clear idea about the meaning of Indian economy.

After Independence India launched her First Five Years plan in ; then now 5-Year Plan is going on. The Indian economy had grown by per cent in , which included a growth rate of percent in the India Industry Sector.

There was a marked improvement in the growth rates of manufacturing (from per cent in to per cent in ) and mining and quarrying (from 2 per cent to per cent during the same period). Essay on features of economic recession questions economic recession essay and to at least five questions of my own.

defining features of these text types and so decide what needs to be taught. Cycle (or Trade Cycle) is divided into the following four phases: Prosperity Phase: Expansion or Boom or Upswing of economy. Article shared by. Indian economy is an under developed economy in which Agriculture is the back bone of Indian economic.

60% of India’s population are on the below poverty line. Essay on Effects of Globalization on Indian Economy! It means to open the Trade and Economy for the international players. In other words, every manufacturer or producer of goods can compete for sale of their products without restrictions or without any imposed control.

In short, microeconomics is the study of individual economic units of the economy, while macroeconomics is the study of the economy as a whole and its totality. There are two main schools of economic thoughts. These schools are 1. Classical economics or 2. Keynesian economics. Macroeconomics before.

Short essay on Indian Economy