Strength of India

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 still 8.5%. The government-owned banks had bad debt that reduced their ability to lend. The rupee declined through 2016, allowing 3.6% inflation. A goods and services tax was unpopular.

India has a mixed economy. Half of India's workers rely on agriculture, the signature of a traditional economy. One-third of its workers are employed by the services industry, which contributes two-thirds of India's output. The productivity of this segment is made possible by India's shift toward a market economy. Since the 1990s, India has deregulated several industries. It's privatized many state-owned enterprises, and opened doors to foreign direct investment.

India's Strengths:-

India is one of the largest importers of the world. Its economy has these five comparative advantages:

The cost of living is lower than in the United States. Its gross domestic product per capita is $7,200, half that of China or Brazil. This is an advantage because Indian workers don't need as much income since everything costs less.

India has many well-educated technology workers.

English is one of India’s official languages. Many Indians speak it. This, combined with the high level of education, attracts U.S. technology and call centers to India. For example, an Indian call center employee only costs $12 per hour. That's almost half the American counterpart of $20 an hour. According to the Technology Manufacturing Corporation, more than 250,000 call center jobs, as a result, were outsourced to India and the Philippines between 2001 and 2003.

India’s 1.3 billion people come from a wide range of economic and cultural backgrounds. This diversity can be strength or a challenge. Socioeconomic status is largely determined by geography. India’s three main regions each have distinct class and education divisions. Annually, 11 million people leave the rural areas to live in the cities. Most of them are young and educated. They seek a higher quality of life.

The profitable Indian film industry is called "Bellwood." It's a portmanteau of Bombay, now called Mumbai, and Hollywood. Bollywood makes twice the number of movies Hollywood makes. The most popular actor in the world is India's Shah Rukh Khan. In 2016, Bollywood contributed $4.5 billion to India's GDP. It generates less revenue than Hollywood’s $51 billion only because its ticket prices are much lower. On the plus side, Bollywood films cost less to make: $1.5 million on average versus $47.7 million in Hollywood.

In addition to FDI, India has seen more than 100 initial public offerings in the last 18 months. Energy, health care, industry, and materials have been the top four sectors. While inbound mergers and acquisitions deals have declined in the last year, outbound deals have increased substantially in the emerging markets in the Middle East, Asia, Africa and South America.