Please don't Stop reading. There is no mistake to know about our own Indian economy and feel proud of it. If you are a management student or have an aim in it, this is a must read article.
Yes, Indian economy is flying. It is growing at the rate of 9% above all the countries only after china. That is why Newyork Stock exchange also bought 5% share in National Stock exchange(NSE).
Economy is generally measured in terms of GDP( Gross Domestic Product). GDP may be defined as the value of the total production in the country. Thus produced product may be consumed in the home or exported, it is irrelevant. Any economy's GDP may be divided in to 3 parts- Agriculture, Industry and Services.
Our economy was opened up in 1991. Economy opening up means accepting the investments from other countries and investing them in our country market. This has played a key role in generating a lot of entrepreneurs who has ideas but no capital. One of them is SUZLON's Tulsitanti. From then onwards slowly the economy has been opened up and the recent announcements of the maximum investments are like this.
Max FII Investments-26% of stock exchange Where FII-Foreign Institutional Investors
(Any foreign banks or companies)
Max FDI Investments-23% FDI-Foreign Direct Investors
(Individual Investors)
Any country's growth will be generally in the Industrial field. When an industry is established a lot of people around that place will get employment. This results in GDP growth and reduces unemployment. This also results in equal distribution of wealth to all the people. And the population under agriculture can also benifitted. But our country's growth is fueled by services sector. Though the income generated in banks is more the number of people working in it is less, similarly is all the services sectors. But the salaries of the people employing in services is high. This results in the unequal distribution of wealth. That is exactly what is happening in India. When some part of population has got no food for days, other part is enjoying in pubs.
The Other major problem in front of us is Inflation. Inflation rate is the measure of rise in prices of the products. It is measured on the basis of WPI( WholeSale Price Index). Crude oil prices are the major contributor to the rise in inflation. But our country's inflation is growing only due to the rise in prices of daily necessities, which is not at all a good news.
No doubt it is the time of India, but we have comitted to this type of services growth. Now what can our government can do is to slowly improve our industrial sector and to maintain a sustainable growth in that field. The importance of service sector cannot be avoided, so it should also grow only at a consistent pace. As the agriculture sector is main occupation of our economy it may also grow at a little pace. But it would be better if the agriculture population are shifted to industry. Inflation rate should be checked by controlling the production and should avoid black markets.
The final conclusion is that at present Indian economy is growing at top of the world. But to have this sustainable Economic progress Industrial growth should dominate services growth.
Yes, Indian economy is flying. It is growing at the rate of 9% above all the countries only after china. That is why Newyork Stock exchange also bought 5% share in National Stock exchange(NSE).
Economy is generally measured in terms of GDP( Gross Domestic Product). GDP may be defined as the value of the total production in the country. Thus produced product may be consumed in the home or exported, it is irrelevant. Any economy's GDP may be divided in to 3 parts- Agriculture, Industry and Services.
- Agriculture-need not be defined.
- Industries- Includes steel, cement etc.
- Services- Banking, Insurance, Telecoms etc.
Our economy was opened up in 1991. Economy opening up means accepting the investments from other countries and investing them in our country market. This has played a key role in generating a lot of entrepreneurs who has ideas but no capital. One of them is SUZLON's Tulsitanti. From then onwards slowly the economy has been opened up and the recent announcements of the maximum investments are like this.
Max FII Investments-26% of stock exchange Where FII-Foreign Institutional Investors
(Any foreign banks or companies)
Max FDI Investments-23% FDI-Foreign Direct Investors
(Individual Investors)
Any country's growth will be generally in the Industrial field. When an industry is established a lot of people around that place will get employment. This results in GDP growth and reduces unemployment. This also results in equal distribution of wealth to all the people. And the population under agriculture can also benifitted. But our country's growth is fueled by services sector. Though the income generated in banks is more the number of people working in it is less, similarly is all the services sectors. But the salaries of the people employing in services is high. This results in the unequal distribution of wealth. That is exactly what is happening in India. When some part of population has got no food for days, other part is enjoying in pubs.
The Other major problem in front of us is Inflation. Inflation rate is the measure of rise in prices of the products. It is measured on the basis of WPI( WholeSale Price Index). Crude oil prices are the major contributor to the rise in inflation. But our country's inflation is growing only due to the rise in prices of daily necessities, which is not at all a good news.
No doubt it is the time of India, but we have comitted to this type of services growth. Now what can our government can do is to slowly improve our industrial sector and to maintain a sustainable growth in that field. The importance of service sector cannot be avoided, so it should also grow only at a consistent pace. As the agriculture sector is main occupation of our economy it may also grow at a little pace. But it would be better if the agriculture population are shifted to industry. Inflation rate should be checked by controlling the production and should avoid black markets.
The final conclusion is that at present Indian economy is growing at top of the world. But to have this sustainable Economic progress Industrial growth should dominate services growth.
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