Vol. 1, Issue 1, Part A (2014)
India growth in economic performance, review of investment, infrastructure, job opportunity and consumerism
Rajesh Kumar Tiwari, Sharad Shukla
India is the fourth largest economy in the world (in PPP terms) and the second largest in developing Asia. By 2012, it is expected to overtake Japan to become the third-largest economy. India accounts for 22 per cent of GDP, 33.8 per cent of the population and 32.5 per cent of potential workforce in developing Asia. In the next 10 years the country will add 120 million to the region's workforce, accounting for 53 per cent of the incremental addition. Its growth story is evident from the increased investment in infrastructure, abundant job opportunities in big and small cities, healthy balance sheets of companies and the heightened growth of consumerism. At present, Indian economy is on the fulcrum of an ever rising growth curve. With positive indicators such as a stable annual growth, rising foreign exchange reserves of close to US$ 150 billion, a booming capital market with the popular Sensex (sensitive index of The Stock Exchange, Mumbai) topping the 11,000 point mark, increasing flow of foreign direct investment (FDI), and more than 20 per cent surge in exports are reinforcing India's growth story. India has grown in stature over the past ten years. Its GDP growth accelerated steadily after India liberalised its economy in 1991, taking a decisive step towards open policies and relinquishing inward looking policies. The average annual GDP growth went up to 7.3 per cent in the 2000s from 5.7 per cent in the 1990s. The near 9 per cent average annual growth over 2003-04 to 2007- 08 was unprecedented. Growth-enhancing reforms, a structural upward shift in savings and investment rates, and increase in spending capacity have together powered India's growth. Although its GDP growth rate dropped due to the global financial crisis to 6.7 percent in 2.008-09, India's economy emerged quite rapidly from the crisis. The economic recovery was aided by the inherent strength of India's domestic demand that was implemented by the Reserve Bank of India's monetary management and the central government's fiscal stimulus measures. With its GDP likely to grow at 8.6 per cent in 2010- 11, India will be among the fastest growing economies Globalization has completely altered the way in which the world turns.
How to cite this article:
Rajesh Kumar Tiwari, Sharad Shukla. India growth in economic performance, review of investment, infrastructure, job opportunity and consumerism. International Journal of Applied Research. 2014; 1(1): 20-24.