India has some of the richest business houses, how does it affect our GDP?

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Essay Contest for UPSC Exam for IAS

Topic:- India has some of the richest business houses, how does it affect our
GDP?
Our country , India is the largest democracy in the world. She is considered
as one of the leading nations on Earth today. But the myriad of factors that
assist India to retain her position among the leading countries around the
globe are indeed commendable. Apart from the bewildering beauty of the
geographical features of the subcontinent, its culture, traditions, food and
art, there is one more component that has helped our country to make her
presence felt in the international diaspora - that is GDP , known as Gross
Domestic Product. The leading business houses of India have been largely
responsible for the growth of GDP in the recent years. GDP , in a nutshell , is
the total financial worth of the end products and services in a country
produced during a given period of time which can be a year or even a
quarter.
Today , India happens to be the country with the 5th largest GDP in the
world , something that we can proudly boast about. As the topic of the
essay itself confirms that India takes pride in housing some of the richest
business groups , we must delve deeper into the role played by them.
Business houses are either public or private enterprises or groups of
institutions that are able to accumulate immensely big profits in different
sectors and simultaneously make an impact on the society , either

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financially or politically. Some famous business houses of India are as
follows:-
1) Reliance Industries
2) TATA Group
3) Hindustan Unilever
4) HDFC
The business houses in India carry out various tasks that make up the
majority of the services sector of the country. The services sector further
comprises trade, transport, communication, real estate, hotels and
restaurants, insurance and financing, etc.
In so far as the GDP is concerned , the service sector contributes hugely to
it. It already devoted almost 54% of Gross Value Added (GVA) in the
financial year 2020-21 , which is more than half of the contribution made to
GDP. For the service sector to be able to perform consistently , it requires
the eminent business houses of India to run efficiently. According to the
Economic Survey the ports alone took care of 90% of the import-export
cargo in terms of volume and 70% in terms of value.An equally potential
sector is the one of tourism which has contributed largely not only to the
GDP but also in securing foreign exchange and generating employment
across India . The IT services outsourcing sector has seen a manifold
expansion within a short period of time. Another interesting and
encouraging development is that the services sector employs nearly 23% of
the working population of the country , all thanks to the big business
houses of India.
It is of utmost importance to learn that the Nominal GDP of our country for
the financial year 2022-23 is estimated at Rs.273.08 lakh crore. Also it is
worth mentioning that the total expenditure (according to budget,
2022-23) by the Indian govt. has been expected to be Rs.39,44,909 crore,

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which is an approximate rise of 4.6% from that in the financial year
2021-22.
Over the years , we have come to realize the indispensability of FDI , also
called Foreign Direct Investment , that is done by any business enterprise
outside the boundaries of its own nation in another business enterprise or
sector established in another country. The inflow of FDI helps a country to
develop further and become richer in terms of GDP. In recent times we have
seen that the services sector has been able to attract the highest amounts
of FDI , which is again possible due to the praiseworthy performance of the
business houses of India.
From what has been observed and discussed till now , we can undoubtedly
say that any development made by the business houses to the services
sector directly affects the GDP of the country and the impact is always for
the better. Not only GDP, but the general standard of living and quality of
life of the citizens rises by leaps and bounds by the contribution of business
houses. Nowadays , business houses are also focusing on sustainable
approaches towards carrying out major operations so that both the climate
and economy are taken care of equally. Hence it is of utmost importance
that more such promising business houses make their mark in the future.

-Swagata Sengupta

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