Understanding Economy

Manufacturing sector of INDIA:- Developing countries like INDIA and CHINA is majorly a manufacturing hub and it is not only the sector actually it is very important for countries like this to take benefit from this and earn huge amount of money Coming to our country we have to understand that a large amount of our GDP consist of mainly manufacturing sector and it is a plus point for us because the basic need for any manufacturing organization is labour, land and resources . And we all know that how these things are widely available in our country and in very low price too. This is the reason world’s largest mobile phone company apple is going to establish its one of the most important assembling unit in India Now coming again on why India is too much below from CHINA instead of having a very cheap labour cost comparison to china First reasoned for this is “skilled person” we all know that how skills are very much important for any organization or any manufacturing un...

Agriculture sector of India:- Indian is an agriculture based country; where nearly 60% of population is depending on agriculture. This structures the main source of income. The commitment of agriculture business in the national income in India is all the more, subsequently, it is said that agriculture in India is a backbone for Indian Economy. The contribution of agriculture in the initial two decades towards the total national output is between 48% and 60%. In the year 2001-2002, this contribution declined to just around 26%. The aggregate Share of Agriculture and Allied Sectors, Including agribusiness, domesticated animals, and ranger service and fishery sub segments as far as rate of GDP is 13.9 percent during 2013- 14 at 2004-05 prices. Agricultural exports constitute a fifth of the total exports of the country. In perspective of the overwhelming position of the Agricultural Sector, gathering and support of Agricultural Statistics expect incredible significance. ...

India Economy Challenges:- Prime Minister Modi  is a Hindu national leader. So many people blame him for the violence against Muslim while he was chief minister of Gujarat. Modi is up against India government bureaucracy. That makes the execution of any fiscal or  monetary policy  difficult. In August 2015, he was blocked from passing a bill to acquire land to promote infrastructure. U.S. monetary policy has hurt India economy. When the  Federal Reserve  began its  quantitative easing  program, the lower interest rates strengthened the value of the dollar. This caused the value of India's rupee to fall. The resulting 9.6% inflation forced India's  central bank  to raise its interest rates. With all this it brutally affects the Indian economy and its growth for normal running. In second quarter, it had 9.6% inflation and 0% GDP growth. Inflation was caused by a declining rupee. Slow growth came from to m...

Stand of India in world economy:- India is in a state of immense opportunity, possibilities and scope to develop. Already it is the world’s second largest country in terms of population and first in terms of potential youth. According to worlds top economists India will grow with a very good pace in a long term and very soon it will be 5 Th largest economy in terms of GDP. In recent years, the country has made a significant development in poverty levels, with extreme poverty dropping from 46 percent to an estimated 13.4 percent over the two decades before 2015. While India is still home to 176 million poor people, it is seeking to get better growth, as well as to promote sustainability by reshaping policy approached to human development, social protection, financial, rural transformation, and infrastructure development. India’s ability to achieve sustainable development will have implications for the world.   India’s success will be central to the world’s co...

Strengths of India:- India is the world's fourth-largest economy. It produced $9.4 trillion in goods and services in 2017. But it has a long way to go to beat the top three: China, with a production worth $23.1 trillion, the European Union with $19.9 trillion, and the United States with $17.4 trillion. India had rapid growth despite the Great Recession. It grew 6.7% in 2017, 7.1% in 2016 and 8% in 2015. From 2008 through 2014, it grew between 5% and 11%. That phenomenal growth rate has reduced poverty by 10% in the last decade. May 23, 2019, Prime Minister Nahrendra Modi won reelection. He was elected on May 16, 2014, ending 60 years of leadership by the party led by Mahatma Gandhi. Mr. Modi, a successful businessman, promised to reduce bureaucracy and regulation, green light infrastructure projects, and simplify the tax code. Opponents say he has not fulfilled his campaign promises. Although growth rates were greater than 6% between 2014 and 2017, unemployment is...

Problem faced by Indian Economy:- Being a poor country and one of the fastest growing economies in the world, there are some problems in  India n economy  as explained below:----- Low per capita income Usually, developing economies have a low per-capita income. The per capita income in India in 2014 was $1,560. In the same year, the per-capita Gross  National Income   of USA was 35 times that of India and that of China was 5 times higher than India. Apart from the low per-capita income, India also has a problem of unequal  distribution  of income. This makes the problem of poverty a critical one and a big obstacle in the economic progress of the country. Therefore, low per-capita income is one of the primary economic issues in India. Dependence of population on agriculture Another aspect that reflects the backwardness of the  Indian economy  is the distribution of occupations in the country. According to the World Bank,...