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India's
Economy
 India
has been slowly progressing economically, due in part to political problems and
the extreme climate. The agrarian economic base has little by little been
changing to one consisting of industry or commerce.
Although
India had a flourishing trade and cottage industry (where people work at home
using their own tools or equipment), with Britain's arrival it was essentially ruined.
The British used the export of opium, cotton and tea to acquire the European
items they desired. Even though the
British built railways (with Indian and British money) and irrigation it didn't
help India's economy. The economy stayed this way, not growing, the last
thirty or so years of British rule.
After
India regained it's independence, it encouraged self sufficiency. This was
to built up India's industry and diminish it's foreign trade dependency.
Although things did improve, it wasn't enough, until the government lessened the
states control of the economy during the 1970s. The government was still
in control over certain industries in the early nineties, and economic growth
was achieved with the help of loans by foreign countries by 1991. But this
was also the same time of the Persian Gulf War, which was a financial blow to
India with the skyrocketing price of oil
India is the seventh
largest and second most populous country in the
world. A new spirit of economic freedom is now
stirring in the country, bringing sweeping
changes in its wake. A series of ambitious
economic reforms aimed at deregulating the
country and stimulating foreign investment has
moved India firmly into the front ranks of the
rapidly growing Asia Pacific region and
unleashed the latent strengths of a complex and
rapidly changing nation.
India's process of
economic reform is firmly rooted in a political
consensus that spans her diverse political
parties. India's democracy is a known and stable
factor, which has taken deep roots over nearly
half a century. Importantly, India has no
fundamental conflict between its political and
economic systems. Its political institutions
have fostered an open society with strong
collective and individual rights and an
environment supportive of free economic
enterprise.
India's time tested
institutions offer foreign investors a
transparent environment that guarantees the
security of their long term investments. These
include a free and vibrant press, a judiciary
which can and does overrule the government, a
sophisticated legal and accounting system and a
user friendly intellectual infrastructure.
India's dynamic and highly competitive private
sector has long been the backbone of its
economic activity. It accounts for over 75% of
its Gross Domestic Product and offers
considerable scope for joint ventures and
collaborations.
Today, India is one
of the most exciting emerging markets in the
world. Skilled managerial and technical manpower
that match the best available in the world and a
middle class whose size exceeds the population
of the USA or the European Union, provide India
with a distinct cutting edge in global
competition.
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