Liberalization And The Economic Growth

In the book Capitalism: A Ghost Story, Roy (2004) exposes the darker side of India that is signified by capitalism. The country is home to big corporations such as Reliance Industries Limited, Jindal, Tata, Mittal, Infosys, Essar and Vedanta among others. However, several people continue to suffer in the hands of these companies. They have accumulated a lot of resources that only seem to benefit them. Without any doubt, the economy of India is growing very fast owing to the privatization of all the resources. The people who have the resources are the ones who continue having more. For instance, even though the country has natural resources like minerals, it is only those large companies that can benefit. This situation can be attributed to the high corruption levels in the country. The policies made have enabled large corporations to continue accumulating large pieces of land. When certain debates regarding land redistribution are brought up, people are viewed as lunatics for demanding equal rights.

India has a highly dynamic and entrepreneurial business environment (Ford, 2011). The freedom of democracy in India supports the country’s private enterprise greatly. India’s characteristics of sovereignty could very well succeed China’s Communist led, authoritarian growth model (Schuman, 2012).

Globalization has been an integral part of India’s progress. It has opened up new avenues for growth.

Amartya Sen defines economic development in terms of personal freedom, freedom to choose from a range of options. While economic growth may lead to an increase in the purchasing power of people, if the country has a repressed economy, there is lack of choice and hence personal freedom in restricted. Hence once again growth has taken place without any development. While economic growth may result in an improvement in the standard of living of a relatively small proportion of the population whilst the majority of the population remains poor. It is how the economic growth is distributed amongst the population that determines the level of development.

Opening up their economies to the global economy has been essential in enabling many developing countries to develop competitive advantages in the manufacture of certain products. In these countries, defined by the World Bank as the "new globalizers," the number of people in absolute poverty declined by over 120 million (14 percent) between 1993 and 1998.1

When India got independence in 1947, India inherited a shattered economy. The economy was completely damaged. This damage was largely done by the exploitative policies adopted by the

The economic system that developed in India after 1947 was a mixed economy characterized by a large number of state-owned enterprises, centralized planning, and subsidies. In 1991, India’s government embarked on an ambitious economic reform program. Much of the industrial licensing system was dismantled, and several areas once closed to the private sector were opened. In addition, investment by foreign companies was welcomed, and plans to start privatizing state-owned businesses were announced. India has posted impressive gains since 1991, however there are still impediments to further transformation. Attempts to reduce import tariffs have been stalled by political opposition from employers, employees, and politicians. Moreover, the privatization program has been slowed thanks to actions taken by the Supreme Court. Finally, extreme poverty continues to plague the country

Firstly, the need for continued unilateral trade and investment liberalization with emphasis on regulatory reforms, much of inward FDI in India’s manufacturing sectors has been viewed as more of “market-seeking” rather than “efficiency-seeking” FDI that will help to link India with Asian IPNs. While the Indian economy becomes outward-oriented, the perception among trading partners of India as a preferred trade and investment partner needs to improve. It needs to deal with behind-the border restrictions on international trade and investment. Secondly, reducing transaction costs, and improving physical and institutional infrastructure for cross-border trade and investment. The high trade cost is due to export related documentation and high logistics cost from low quality infrastructures involving inefficient ports, complicated bureaucratic procedures and electricity outage. This creates unfavorable business environment. Upgrading of transportation infrastructure (road, railway, etc.) and communications technology services are needed to allow efficiency and reduction in cost. Third, addressing labor market rigidities, since manufacturing sector can provide large-scale employment, and be a key driver for structural change as India grows, it would help India integrate into Asian IPNs because it promotes growth through forward and backward linkages with other sectors, particularly the services sector which has contributed greatly to country’s growth. However, when there are rigidities, India is not able to shift its employment structure towards manufacturing even with its many low-cost skilled labors. Hence, it fails to make use of its human resources efficiently to compete in the international markets. Other than that, labor market rigidities cause “jobless growth” in organized manufacturing and thus the increasing use of contract and temporary workers. Therefore, there is a need for labor reform at national and state

On the 15th of August, 1947, India awoke to freedom and democracy, when the British passed on the controls of ‘the brightest jewel in the crown’ (as India was lovingly called) to the Indian people. The Indian subcontinent has been invaded since time immemorial for the riches the land held. It is often said that trading with India and conquering it was a great deal to the Europeans. For the British to reign the country for so long, which became dominant primarily after several wars and diplomatic issues in Indian as well as Europe, was a source of pride. It established them as superior to the Dutch, French and Portuguese. However, if India indeed is a country of such abundance, and has been a free country for so long, why is it still counted amongst low income countries? In this paper, I make an attempt to evaluate how India’s economic policies and growth have changed since independence.

Evolution of Development Policy and its Impact on Region Disparity in India since 1980: In Search of Convergence of Real Per Capita Incomes

The exposition of the IT is also a contributor towards this. The Gandhian morality of not showcasing your wealth no longer holds true when a certain business man in Mumbai builds a 27 storied building for a family of 5. The economic prowess of the nation is hence showcased by such successful entrepreneurs. The height of the positives of economic reforms took place when India can acheievd a growth rate of 9% in 2007 . Today India is known as among the 10 largest economies of the world.

The Impact on Economic Growth through the Process of the Financial Liberalization of Developing Countries

In India, the economic stability is challenged by the differentiating standards of poverty between the state and the citizen(s). The welfare policies implemented by the government programs have not and are not yet able to meet the standards that will be beneficial in producing a healthy society. The government of India and the citizens share different political ideologies concerning the economic infrastructure of their country. The state level of governance has not yet been capable of meeting the correct economic standards in the process of development in order to achieve a small gap between the poor and wealthy civilians entitled to their state. That in mind, the state level did not cause the mass poverty of India but has not yet found the factors to resolve the issue of inequality poverty within India.

Economic growth is the most influential tool for decreasing poverty and refining the value of life in evolving countries. Both research and case studies over different countries provide overshadowing signs that speedy and continued growth is crucial to making faster progress towards the MDG (Millennium Development Goals) and not just the first goal of splitting the global share of people living on less than $1 a day.

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade