The Changing Face of Indian Economy

The Indian Economy is undoubtedly on the fulcrum of an ever-increasing growth curve. Long criticised for nurturing an inward looking economy, the country’s impressive GDP growth of 9.2. per cent during the financial year 2006-07 and 8.4 per cent in 2005-06 has led the experts of globalisation forecast that by the next thirty years India’s economy could be larger than all but those of the United States and China. Thus, India has not only been able to discard its image as the tortoise of the region but has also presented itself to the world as an economic powerhouse. The initiatives taken in the early 1990s continue to bring the rewards and have enabled India to become the fourth largest GDP in the world in terms of purchasing power. Today, the young generation has the potential to absorb and master new technologies. The country has a healthy regulatory environment and strong financial system. Owing to its better returns on investments, it has been able to attract a large number of foreign investors. MNCs are today looking for low-cost manufacturing bases, and India is seen as their favourite choice. It has been estimated by the eminent economists that India may emerge as one of the three top engineering goods exporters among low-cost offshore manufacturers with an export target of $250-300 billion by 2015. Likewise, it is becoming a major force in complex, high-end and high margin Information Technology Services. Today, there is an increasing willingness internationally to work with India and built relationships for mutual benefit in different fields–automobile, pharmaceuticals, tourism, electronics and communication, to name a few. No wonder there are many who believe that the future belongs to India. It is not to say that the country has an easy ride ahead. Its first challenge is to broad-base growth. According to World Bank Data, a considerably large proportion of India’s population earns less than $2 a day. Furthermore, the problems of illiteracy, lack of health care and unemployment are still acute, which indicate that India is long way away from prosperity. The changing face of Indian economy thus needs to be looked into from several sides. The present book is a modest effort in this direction. It makes an analytic study of India’s progress since independence of the country and focuses on the policies and initiatives taken as yet. It aims at acquainting readers with the economic scenario of India in its true spirit. The book will prove an ideal reference book for students, researchers and teachers of Economics. Even the general readers interested in the present state of Indian economy and its progress will find it valuable and informative.