Issues and Challenges Article shared by: Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century. For over 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 United States US and the rich countries of Europe to the two Asian giants, India and China. The rich countries of Europe have seen the greatest decline in global GDP share by 4.
This helped the Indian economy to achieve a rapid rate of economic growth and economic development.
However, the economy still faces various problems and challenges, such as corruption, lack of infrastructure, poverty in rural areas and poor tax collection rates. GDP per capita in Geary-Khamis dollars data range 1. Unemployment Despite rapid economic growth, unemployment is still an issue in both rural and urban areas.
The fast rate of economic growth has left unskilled workers behind, and they have struggled to find work in growing industries. Livemint reported on March 6, WIth, little if any government welfare support for the unemployed, it leads to dire poverty. It is worse in rural areas and amongst women.
This limits economic development and a more skilled workforce. Poor Infrastructure Many Indians lack basic amenities lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency.
Balance of Payments deterioration. Although India has built up large amounts of foreign currency reserves, the high rates of economic growth have been at the cost of a persistent current account deficit.
Since then there has been an improvement in the current account.
But, the Indian economy has seen imports growth faster than exports. This means India needs to attract capital flows to finance the deficit. Also, the large deficit caused the depreciation in the Rupee between and Whilst the deficit remains, there is always the fear of a further devaluation in the Rupee.
There is a need to rebalance the economy and improve the competitiveness of exports. However, there are concerns about the risk of such loans.
If they are dependent on rising property prices it could be problematic. Furthermore, if inflation increases further it may force the RBI to increase interest rates.This essay will take South Korea, a developed country and the Samsung products as example to analyze the way the technology influences the country’s.
Published: Mon, 20 Aug Alternatives for Capitalism in a Globalised Economy. IMF News: The IMF just completed its annual assessment of the Indian economy.
How is the economy doing? How is the economy doing? The Indian economy is growing strongly and remains a bright spot in the global landscape. ADVERTISEMENTS: 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.
Emerging Challenges What's In Store for the New Global Powers China, India and Brazil are taking the global economy by storm, becoming more politically confident on their way.
Introduction Indian economy had experienced major policy changes in early s. The new economic reform, popularly known as, Liberalization. India is a fastest developing country in the world. India, with its diversified culture, civilization, natural resources, technology and huge skilled human resources, is also a fastest growing economy in the world.