India's Economic Performance - Globalisation As Its Key Drive

International Journal of Global Business, 5 (1), 1-16, June 2012
Indias Economic Performance- Globalisation As Its Key Drive

Dr.M.Dhanabhakyam, Sakthipriya.M.R.G
Bharathiar University, Coimbatore, India
dhana_giri@rediffmail.com, sakthipriyamrg@gmail.com
Abstract
Globalisation is the new buzzword that has come to dominate the world since the nineties
of the last century with the end of the cold war and the break-up of the former Soviet Union and
the global trend towards the rolling ball. The frontiers of the state with increased reliance on the
market economy and renewed faith in the private capital and resources, a process of structural
adjustment spurred by the studies and influences of the World Bank and other International
organisations have started in many of the developing countries. Also Globalisation has brought
in new opportunities to developing countries. Greater access to developed country markets and
technology transfer hold out promise improved productivity and higher living standard. But
globalisation has also thrown up new challenges like growing inequality across and within
nations, volatility in financial market and environmental deteriorations. Another negative aspect
of globalisation is that a great majority of developing countries remain removed from the
process. Till the nineties the process of globalisation of the Indian economy was constrained by
the barriers to trade and investment liberalisation of trade, investment and financial flows
initiated in the nineties has progressively lowered the barriers to competition and hastened the
pace of globalisation. This paper presents the performance of the Indian economy with
globalisation as its key drive. Various sectors of the Indian economy are considered for the
study.
Key words: Globalisation, growth trends, GDP, growth rate of various sectors of the economy,
benefits and pitfalls, future of Indian economy
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 can hardly be overlooked. Besides, it also marks the
advent of the real integration of the Indian economy into the global economy.
This era of reforms has also ushered in a remarkable change in the Indian mindset, as it
deviates from the traditional values held since Independence in 1947, such as self reliance and
socialistic policies of economic development, which mainly due to the inward looking restrictive
form of governance, resulted in the isolation, overall backwardness and inefficiency of the
economy, amongst a host of other problems.
Now that India is in the process of restructuring her economy, with aspirations of
elevating herself from her present desolate position in the world, the need to speed up her
economic development is even more imperative. And having witnessed the positive role that
Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the
Southeast Asian countries and most notably China, India has embarked on an ambitious plan to
emulate the successes of her neighbors to the east and is trying to sell herself as a safe and
profitable destination for FDI.
Globalization has many meanings depending on the context and on the person
who is talking about. Though the precise definition of globalization is still unavailable a few
definitions are worth viewing, Guy Brainbant: says that the process of globalization not only
includes opening up of world trade, development of advanced means of communication,
internationalization of financial markets, growing importance of MNCs, population migrations
and more generally increased mobility of persons, goods, capital, data and ideas but also
infections, diseases and pollution. The term globalization refers to the integration of economies
of the world through uninhibited trade and financial flows, as also through mutual exchange of
technology and knowledge. Ideally, it also contains free inter-country movement of labor. In
context to India, this implies opening up the economy to foreign direct investment by providing
facilities to foreign companies to invest in different fields of economic activity in India,
removing constraints and obstacles to the entry of MNCs in India, allowing Indian companies to
enter into foreign collaborations and also encouraging them to set up joint ventures abroad;
carrying out massive import liberalization programs by switching over from quantitative
restrictions to tariffs and import duties, therefore globalization has been identified with the policy
reforms of 1991 in India.
Strategies Initiated
Major measures initiated as a part of the liberalization and globalization strategy in the early
nineties included the following:
Disinvestment
Devaluation
Dismantling of The Industrial Licensing Regime
Allowing Foreign Direct Investment
Non Resident Indian Scheme
Throwing Open Industries Reserved For The Public Sector to Private Participation
Abolition of the (MRTP) Act
The removal of quantitative restrictions on imports.
The reduction of the peak customs tariff
Importance of the Study

Globalisation has brought in new opportunities to developing countries. Greater access to
developed country markets and technology transfer hold out promise improved productivity and
higher living standard. Indias economic growth has been substantially high and India have
become progressly vibrant and nationally competitive. This urged to study the performance of
India in this fiscal year due to the initialisation of globalisation
Objective of The Study
To understand the meaning of globalization.

To analyse the Economic performance and growth of India due to globalization in the
current pace.
To analyse the pleasant and unpleasant side of globalization.
To analyse the pitfalls of globalization.
To estimate the future of the Indian economy.
Methodology
Secondary data is collected for the study. The data is collected from various journals and internet
links in order to
Compare and analyse the growth statistics of various sectors of the economy.
Tabulating and estimating the GDP of the Indian economy.
To estimate the contributions made by the different sectors on Indias growth.
To analyse Indias current position among the world countries in terms of GDP
To determine the contributions made by India to the world economy.
Growth of GDP
Chart showing the growth in GDP
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
India
5.5
4.3
4.3
8.3
6.2
8.4
9.2
7.4
7.4 10.4
The economic scenario in India has been pretty stable over the last 5 years. Despite the economic
downturn two years back the Indian economy has managed to remain stable. The India GDP
recorded for the period December 2010 stood at 7.4 percent. However according to the (CMIE)
or Centre for Monitoring Indian Economy India will record a GDP of 10.4 per cent in the year
2011. India's GDP growth 2010 - 2011 has not been phenomenal but is certainly encouraging.
Growth of Foreign Exchange Reserves

Indias foreign exchange reserves have grown significantly since 1991. The reserves,
which stood at US$ 5.8 billion at end-March 1991 increased gradually to US$ 54.1 billion by
end-March 2002, after which it rose steadily reaching a level of US$ 309.7 billion in March
2008. The reserves declined to US$ 252.0 billion in March 2009. The reserves stood at US$
292.9 billion as on September 30, 2010 compared to US $ 279.1billion as on March 31, 2010.
Although both US dollar and Euro are intervention currencies and the FCA are maintained in
major currencies like US dollar, Euro, Pound Sterling, Japanese Yen etc. the foreign exchange
reserves are denominated and expressed in US dollar only. Movements in the FCA occur mainly
on account of purchases and sales of foreign exchange by the RBI in the foreign exchange
market in India. In addition, income arising out of the deployment of the foreign exchange
reserves and the external aid receipts of the Central Government also flow into the reserves. The
movements of the US dollar against other currencies in which FCA are held also impact the level
of reserves in US dollar terms.
Chart showing the growth of Foreign Exchange Reserves
Growth of FDI
Chart showing the source of FDI into India between April 2000 and March 2011
During April-February 2010-11, Mauritius has led investors into India with US$ 6,637 million
worth of FDI comprising 42 per cent of the total FDI equity inflows into the country. The FDI
equity inflows from Mauritius is followed by Singapore at US$ 1,641 million and the US with
US$ 1,120 million, according to data released by DIPP.
Inflow of FDI Into India
Table showing the inflow of FDI into India
Year
A. Direct investment
Rupees
crore
US $
million
B. Portfolio
investment
Rupees
US $
crore
million
Total (A+B)
Rupees
crore
US $
million
2000-01
18406
4029
12609
2760
31015
6789
2001-02
29235
6130
9639
2021
38874
8151
2002-03
24367
5035
4738
979
29105
6014
2003-04
19860
4322
52279
11377
72139
15699
2004-05
27188
6051
41854
9315
69042
15366
2005-06
39674
8961
55307
12492
94981
21453
2006-07
103367
22826
31713
7003
135080
29829
2007-08
140180
34835
109741
27271
249921
62106
2008-09
161536
35180
-63618
-13855
97918
21325
2009-10
176304
37182
153511
32375
329815
69557
Note : 1. Data for 2008-09 and 2009-10 are provisional.
2. Data on FDI have been revised since 2000-01 with expanded coverage to approach
international best practices.
Data from 2000-01 onwards are not comparable with FDI data for earlier years.
4. Negative (-) sign indicates outflow.
5. Direct Investment data for 2006-07 include swap of shares of 3.1 billion.
Also see Notes on Tables.
India has been ranked at the second place in global foreign direct investments in 2010 and will
continue to remain among the top five attractive destinations for international investors during
2010-12 , according to United Nations Conference on Trade and Development (UNCTAD) in a
report on world investment prospects titled, 'World Investment Prospects Survey 2009-2012'.
India attracted FDI equity inflows of US$ 1,274 million in February 2011. The cumulative
amount of FDI equity inflows from April 2000 to February 2011 stood at US$ 128.642 billion,
according to the data released by the Department of Industrial Policy and Promotion (DIPP).
The services sector comprising financial and non-financial services attracted 21 per cent of the
total FDI equity inflow into India, with FDI worth US$ 3,274 million during April-February
2010-11, while telecommunications including radio paging, cellular mobile and basic telephone
services attracted second largest amount of FDI worth US$ 1,410 million during the same period.
Housing and Real Estate industry was the third highest sector attracting FDI worth US$ 1,109
million followed by power sector which garnered US$ 1,237 million during April-December
2010-11. The Automobile sector received FDI worth US$ 1,320 million.
Growth of Capital Market
In respect of market capitalization (which takes into account the market value of a quoted
company by multiplying its current share price by the number of shares in issue), India is in the
fourth position with $ 894 billion after the US ($ 17,000 billion), Japan ($ 4800 billion) and
China ($ 1000). India is expected to soon cross the trillion dollar mark.
Growth in the Number of Billionaires
India, presently with exactly 55 "dollar-billionaires" (individuals with a total net worth of one
billion dollars and above), accounts for roughly 4.5% of the global total of 1210 billionaires
across the six continents. The number of billionaires of India has risen to 40 (from 36 last year)
more than those of Japan (24), China (17), France (14) and Italy (14) this year. A press report
was jubilant: This is the richest year for India. The combined wealth of the Indian billionaires
marked an increase of 60 per cent from $ 106 billion in 2006 to $ 170 billion in 2007. The 40
Indian billionaires have assets worth about Rs. 7.50 lakh crores whereas the cumulative
investment in the 91 Public Sector Undertakings by the Central Government of India is Rs. 3.93
lakh crores only.
Growth in Industrial Sector
Chart showing the current Industrial Growth Rate in India on Year-on-Year Basis (Base
Year 2004-05)
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
India
7.5
4.7
6.5
7.4
7.9
7.5
8.5
4.8
9.3
9.7
Sector Wise Growth of GDP

Indian exports increased by 26.8 per cent (y-o-y) and touched US$ 18.9 billion in
November 2010. This rapid growth in the exports from India urged the Indian Government to
conclude that the total shipments in 2010-11 might go up to US$ 215 billion. For the period
April 2010 to November 2010 exports in the country grew by 26.7 per cent to US$ 140.3 billion.
On the other hand imports increased to US$ 222 billion.
India also made a substantial profit from Foreign Exchange Earnings. The number of
Foreign Tourist that visited the country from January- November 2010 was about 4.93 million as
compared to 4.46 million foreign tourists during the same period in 2009, registering a growth
rate of 10.4 per cent. The (FEE) or Foreign Exchange Earnings went up to a whopping US$
12.88 billion during the period January-November 2010 as compared to US$ 10.67 billion during
January-November 2009. The growth rate registered by the Ministry of Tourism was 20.7
percent.
The logistics industry in India is also witnessing enormous activity. According to a study
conducted by the shipping ministry in India, some of the important ports in the country handled
about 44.4 million tons of freight in September 2010. There was a growth rate of 4.5 per cent as
compared to the growth rate in September 2009 which stood at 5.9 per cent. According to
Frost&Sullivan, the traffic in these ports is going to rise from 814.1 (MT) to 1,373.1 MT from
the period 2010 to 2015 at a steady CAGR of 11 percent.
The investment industry in India also showed positive signs of growth in 2010.
According to the reports released by the Association of Mutual Funds in India the total assets
that the mutual fund industry managed accounted at US$ 160.44 billion in September 2010.
According to the reports released by the Telecom Regulatory Authority of India (TRAI)
the total number of telephone users in India reached 742.12 million in October 31, 2010. This
took the total telephone using population in the country to 62.51 percent. The number of wireless
subscribers
also
increased
to
706.69
million.
According to the NASSCOM's Strategic Review 2010, the IT-BPO sector in India
remained the fastest developing industry churning out total revenue of USD 73.1 billion in 2010.
The Information Technology and software services generated revenues of USD 63.7 billion.
The vehicles industry in India also witnessed a substantial growth in 2010. The
production of vehicles in India grew by 32.4 per cent in August 2010, as against the
corresponding period in 2009. Ranging from the commercial vehicles to two-wheelers to the
Passenger vehicles segment all registered striking growth rates of 49 per cent, 31 per cent and 32
percent.
According to the reports of the Gem and Jewellery Export Promotion Council, the
shipment of jewelry from India was worth US$ 23.57 billion during the April-November 2010,
recording an increase of 38.25 per cent as compared to that of US$ 17.05 billion as against the
same
period
in
2009.
Even the aviation industry registered a steady growth in 2010 as compared to the
previous year. As per the Ministry of Civil Aviation, the total number of passengers carried by
the domestic airlines during January-November, 2010 were 46.81 million as compared to 39.35
million in the previous year, registering a profit of 18.9 per cent.
Unpleasant Side of Globalization

Poverty Rate
Chart showing the poverty rate in India
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
India
35
35
25
25
25
25
25
25
25
25
25
25
Inspite of the decline in the poverty rate, the number of rural landless families increased
from 35 per cent in 1987 to 45 per cent in 1999, further to 55 per cent in 2005. The farmers are
destined to die of starvation or suicide. Replying to the Short Duration Discussion on Import of
Wheat and Agrarian Distress on May 18, 2006, Agriculture Minister Sharad Pawar informed the
Rajya Sabha that roughly 1, 00,000 farmers committed suicide during the period 1993-2003
mainly due to indebtedness.
In his interview to The Indian Express on November 15, 2005, Sharad Pawar said: The
farming community has been ignored in this country and especially so over the last eight to ten
years. The total investment in the agriculture sector is going down. In the last few years, the
average budgetary provision from the Indian Government for irrigation is less than 0.35 percent.
Employment and Unemployment
Agricultural and allied sectors accounted for about 52.1% of the total workforce in 2009
10. While agriculture has faced stagnation in growth, services have seen a steady growth. Of the
total workforce, 7% is in the organised sector, two-thirds of which are in the public sector. The
NSSO survey estimated that in 200405, 8.3% of the population was unemployed, and an
increase of 2.2% over 1993 levels, with unemployment uniformly higher in urban areas and
10
among women. Growth of labour stagnated at around 2% for the decade between 19942005,
about the same as that for the preceding decade. Avenues for employment generation have been
identified in the IT and travel and tourism sectors, which have been experiencing high annual
growth rates of above 9%.
Chart showing the employment rate in India
Country 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
India
8.8
8.8
9.5
9.2
8.9
7.8
7.2
6.8 10.7 10.8
Growth in Agriculture
In 1951, agriculture provided employment to 72 per cent of the population and
contributed 59 per cent of the gross domestic product. However, by 2001 the population
depending upon agriculture came to 58 per cent whereas the share of agriculture in the GDP
went down drastically to 24 per cent and further to 22 per cent in 2006-07. This has resulted in a
lowering the per capita income of the farmers and increasing the rural indebtedness.
The agricultural growth of 3.2 per cent observed from 1980 to 1997 decelerated to two
per cent subsequently. The Approach to the Eleventh Five Year Plan released in December 2006
stated that the growth rate of agricultural GDP including forestry and fishing is likely to be
below two per cent in the Tenth Plan period.
The reasons for the deceleration of the growth of agriculture are given in the Economic
Survey 2006-07: Low investment, imbalance in fertilizer use, low seeds replacement rate, a
distorted incentive system and low post-harvest value addition continued to be a drag on the
sectors performance. With more than half the population directly depending on this sector, low
agricultural growth has serious implications for the inclusiveness of growth.
11
Social Services
Rate of Literacy
Chart showing the Literacy Rate in India
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
India
52
52
52 59.5 59.5 59.5 59.5
61
61
61
61
61
Though there is a increase in literacy rate, About the quality of education given to
children, the Approach to the Eleventh Five Year Plan stated: A recent study has found that 38
per cent of the children who have completed four years of schooling cannot read a small
paragraph with short sentences meant to be read by a student of Class II. About 55 per cent of
such children cannot divide a three digit number by a one digit number. These are indicators of
serious learning problems which must be addressed.
Infant Mortality Rate
Chart showing the infant mortality rate in India
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
India
64.9 63.19 61.47 59.59 57.92 56.29 54.63 34.61 32.31 30.15 49.13 47.57
12
The Approach to the Eleventh Plan concedes that progress implementing the objectives
of health have been slow. The Report gave the particulars of the rates of infant mortality (per
1000 live births) for India as 60 against Sri Lanka (13), China (30) and Vietnam (19). The rate of
maternal mortality (per 1, 00,000 deliveries) of India is 407 against Sri Lanka (92), China (56)
and Vietnam (130). Compared to other countries, the mortality rate is high. This should be taken
care
Growth of Slum Capitals
Slum Population in India
Slum Population simply refers to people living in slum areas below the poverty line. As
India is still on the path of development, there is large number of people living below the poverty
line. These people usually live in slum areas connected to the city. According to Government
sources, the Slum Population of India have exceeds the population of Britain. It has doubled in
last two decades. According to last census in 2001, the slum-dwelling population of India had
risen from 27.9 million in 1981 to 61.8 million in 2001. Indian economy has achieved a
significant growth of 8 percent annually in last four years, but there is still large number of
people nearly 1.1 billion still survives on less than 1 $ (around 46 INR) in a day.
Increase in Indian Population over a period of time has also resulted in slum population
growth. Despite of Government efforts to build new houses and other basic infrastructure, most
of the people living in slum areas do not have electricity, water supply and cooking gas.
Slum Population in Mumbai
The financial capital of India known as Mumbai is home to estimated 6.5 million slum
people. Nearly half of Mumbai's Population lives in small shacks surrounded by open sewers.
Nearly
55%
of
Mumbai's
population
lives
in
Slum
areas.
Slum Population in Delhi
After Mumbai, Delhi has the second largest slum Population in India. Nearly 1.8 million
people lives in slum areas in capital of India - New Delhi. These people are mostly unemployed
or daily wage workers who cannot even afford basic necessities of life.
Indias Current Position Among the World Countries in Terms of GDP
The Economy of India is the tenth largest in the world by nominal GDP and the fourth
largest by purchasing power parity (PPP). The country's per capita GDP (PPP) is $3,339 (IMF,
129th) in 2010. Following strong economic reforms from the post-independence socialist
economy, the country's economic growth progressed at a rapid pace, as free market principles
were initiated in 1991 for international competition and foreign investment.
The country which was termed underdeveloped till a few decades back has shown the
world its great potential. Moving along slowly with accurately measured footsteps India is surely
treading on. The policy-makers of the country realized at the right time their age old ideas and
beliefs and started moving towards the direction of growth. Over the years numerous steps have
been taken to rationalize taxes and reduce red-tapism in the country.
The recent all round growth and development has made people across the globe realize
the importance of the country as a well read and powerful economy. With its galloping GDP
13
figures India forced other powerful economies to sit up and take notice of it. The country today,
despite all odds is showing signs of health, wealth and vigor.
Backed by sound economic policies and information technological advancements, the
South-East Asian countries have prospered as their employment growth rate has increased
tremendously. One fine example of this phenomenon is India which continues to have a
economic growth rate of 8 percent or more per year.
Easy access to foreign capital and increased foreign direct investment lays down the
foundation for a competitive and yet, thriving market.
Since the players increase in the market, the consumers not only get better products but
also at a cheaper price. And hence, one of the benefits of globalization is low inflation
rate which helps the country to have a stabilized economy.
Poverty has reduced in the Asian countries which have adopted liberalized economic
policies.
Companies from other countries bring their products with their technologies. Newer
technologies in IT, production and research cuts down the production cost, and increases
sales. Moreover, it also sharpens the skills of the local labor force.
The Negative Effects of Globalization
Developed nations have outsourced manufacturing and white collar jobs. That means less
jobs for their people. This has happened because manufacturing work is outsourced to
developing nations like China where the cost of manufacturing goods and wages are
lower. Programmers, editors, scientists and accountants have lost their jobs due to
outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Prisoners and child workers are used to
work in inhumane conditions. Safety standards are ignored to produce cheap goods.
Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant
dread of losing their jobs to competition. Increased job competition has led to reduction
in wages and consequently lower standards of living.
Terrorists have access to sophisticated weapons enhancing their ability to inflict damage.
Terrorists use the Internet for communicating among themselves.
Companies have set up industries causing pollution in countries with poor regulation of
pollution.
Fast food chains like McDonalds and KFC are spreading in the developing world. People
are consuming more junk food from these joints which has an adverse impact on their
health.
The benefits of globalization are not universal. The rich are getting richer and the poor
are becoming poorer.
Bad aspects of foreign cultures are affecting the local cultures through TV and the
Internet.
Enemy nations can spread propaganda through the Internet.
Deadly diseases like HIV/AIDS are being spread by travellers to the remotest corners of
the globe.
14
Local industries are being taken over by foreign multinationals.

The increase in prices has reduced the governments ability to sustain social welfare
schemes in developed countries.
There is increase in human trafficking.
Multinational Companies and corporations which were previously restricted to
commercial activities are increasingly influencing political decisions.
Future of Indian Economy
Indian Economy: Future Challenges
Experts believe that the contribution of India in the world GDP is estimated to increase
from 6% to 11% by the year 2025, while on the flip side the contribution of US in world
GDP is presumed to decline from 21% to 18%. This indicates towards the emergence of
India as the third biggest global economy after US and China. The evaluation is
supported by the overall development in all the sectors in India.
Sustaining the growth momentum and achieving an annual average growth of 9-10 % in
the next five years.
Simplifying procedures and relaxing entry barriers for business activities and Providing
investor friendly laws and tax system.
Boosting agricultural growth through diversification and development of agro processing.
Expanding industry fast, by at least 10% per year to integrate not only the surplus labour
in agriculture but also the unprecedented number of women and teenagers joining the
labour force every year.
Developing world-class infrastructure for sustaining growth in all the sectors of the
economy
Allowing foreign investment in more areas.
Effecting fiscal consolidation and eliminating the revenue deficit through revenue
enhancement and expenditure management.
Some regard globalization as the spread of western culture and influence at the expense
of local culture. Protecting domestic culture is also a challenge.
Global corporations are responsible for global warming, the depletion of natural
resources, and the production of harmful chemicals and the destruction of organic
agriculture.
The governmentshould reduce its budget deficit through proper pricing mechanisms and
better direction of subsidies.
Empowering the population through universal education and health care, India must
maximize the benefits of its youthful demographics and turn itself into the knowledge
hub of the world through the application of information and communications technology
(ICT) in all aspects of Indian life although, the government is committed to furthering
economic reforms and developing basic infrastructure to improve lives of the rural poor
and boost economic performance. Government had reduced its controls on foreign trade
and investment in some areas and has indicated more liberalization in civil aviation,
telecom and insurance sector in the future.
The lesson of recent experience is that a country must carefully choose a combination of
policies that best enables it to take the opportunity - while avoiding the pitfalls. For over
15
a century the United States has been the largest economy in the world but major
developments have taken place in the world economy since then, leading to the shift of
focus from the US and the rich countries of Europe to the two Asian giants- India and
China. Economics experts and various studies conducted across the globe envisage India
and China to rule the world in the 21st century. India, which is now the fourth largest
economy in terms of purchasing power parity, may overtake Japan and become third
major economic power within 10 years.
Conclusion
For those who predicted otherwise, India is one of the fastest growing countries today. Its
population which was once the most talked about subject has actually turned the tables for India.
With a host of economic advantages, a well educated and young population India is all set to rule
and give the superpowers a run for their money.
As far as the economic scenario is concerned India is surely on a roll. The last twenty
years have really proved extremely beneficial for India. The country now stands only after Brazil
as far as GDP ranking is concerned. India has replaced Russia and grabbed the second position in
the global forefront mostly due to the strategic planning and huge amount of expenditures on
education in India. India GDP 2011 is expected to cross the 8 percent mark and move to 9
percent GDP growth rate.
India is the second largest populated country in the world sheltering over one billion
people. Although India has not had a striking 10 percent year over year economic growth as its
neighbor China it has still managed to grow at a nominal rate. India's GDP growth has been slow
but careful.
According to trade pundits India will take the third position as Far as GDP growth in
concerned by 2020 replacing Germany, the UK, and Japan. Only United States and China will be
ahead of it.
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International Journal of Global Business, 5 (1), 1-16, June 2012