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Indian economy is described as a economy which is tenth largest in world by nominal GDP and third largest in terms of purchasing power parity. This economy was growing at a fast pace in recent past has been plagued by such a slowdown that our currency is on a freefall and it is not able to ascertain its lower limit.
Economy of a country depends on number of factors which are divided in three general categories like Primary, Secondary and tertiary. Independence-era Indian economy till 1991 was based on a mixed economy which combines the features of capitalism and socialism resulting in interventionist policies and import substituting economy. This economy has always given much emphasis on agriculture which is called as backbone of the nation as the percentage of people dependent on it is approximately 60% of the total population. But the misery is that its contribution in total GDP of the nation is less than 10%.
Looking on the various sectors that contribute to make the Indian economy like agriculture, trade, services etc. In context of Indian economy, the most important one is the trade aspect that consists of import, export and various business processes. Trade aspect alternately tells us about the industrial growth of a nation and its dependence on other nation. Recent slowdown of economy is attributed to the fact that import has exceeded the level of export that lead to heavy deficit of balance of trade.
The most important factor in the slowdown of Indian economy is the poor infrastructure, low growth in agriculture production and industrial activities. After the adoption of LPG principle in 1991 India has opened its economy for global prospects which mainly involves liberal and free market policies. This opening has brought various pros and cons with itself as earlier our economy is tightly regulated by govt. policies and principles.
Our country is rich in number of metallic and non-metallic minerals which has given a strong base for the rapid industrialization. But there are few types of natural resources which are present in scarce amount like petroleum, natural gas, gold, silver etc. global scenarios is telling that the economic fight of future times is based on these aspects.
So to fulfill the gap created by this scarcity India has to buy a heavy amount of this resource from foreign players who are also in the arena of global power fight. Also the global currency is now provided with the base of gold reserves of a country.
These factors have made the India, a nation heavily dependent on import from different countries. This heavy import always exceeds the margin created by our exports which are mainly concentrated in the field of raw material.
So to have a control on the issue of petroleum, it has to explore alternatives like LNG and other alternatives. Economic condition of a country is also decided by the physiographical, social and political condition existing in that nation. Looking from the perspective of India one can easily ascertain the upheaval condition existing due to its distorted relation with its neighbors, dangerous internal condition due to rampant corruption, narrow minded politics involving communal forces etc.
Politicians involved in making the framework for Indian economy are not ready to understand the seriousness of the situation due to their vote bank politics Still the various policies in this economy are formed on the influence of certain groups which have political ground. India – a nation with vast manpower, sufficient amount of natural resources, suitable natural location for global trade has good amount of potential which can make it a superpower.
But to achieve the top slot, it has to look at various loopholes present in its planning section as well as implementation section. But if a nation has to exist and maintain itself in the front in the run of this economic competition, he has to keep his pace with global standards.
There are certain other aspects that it can adopt to reduce its dependence on global economy as increasing its research & development share , establishing good relations with its neighbor so that it can reduce its heavy expenditure on defence sectors, planning economic- centric schemes which try to maximize the capital part along with social responsibility.
Politicians have to understand the fact that time has come when they have to realize the importance of the moment and resolve their differences on economic issue and bring out a plan that can boost the factors responsible for growth of domestic industries. These policies must be freed from the local influences and have a global outlook.
- Amit Srivastav