Indian Economics

Essay # 28844

Asian Studies
Economics > International

Indian Economics

A discussion of the current economic status of India.

1,555 words () | 6 sources | MLA | 2003 Italy

Paper Summary:

This paper examines the economic issues and instabilities of India due to the country's irrational economic policies, overwhelming military expenditures and its growing computer industry. It looks at how the scenery of Indian economy has been strongly characterized by state's interventions since the 1991 crisis and how, since then, India has hypothetically lived a dynamic and active process of liberalization of its own economy that consented the country, in the last few years, to delineate its enormous potentials. It shows how the traditional sectors of the economy are agricultural and manufacture and how the latter is favored by the numerous natural resources and by the low costs of labor.

From the Paper:

"Seventy percent of the Indians live in rural areas. When it is talked about cutting rural development and services, it means that most of the Indians will suffer. "The finance minister failed to tax the rich and took the easy option of borrowing, raising that target by almost 40%"(Bidwai, 2). The outcome was a raise in the prices of wheat and rice distributed to the officially poor to cut the dept owed to the IMF. On the other side though, the finance minister, had cut taxes in export profits, and electronic equipments to the already thriving entertainment, and information technology industry. Not to mention the increase of military expenditures by 28.8 percent, exceeding the total expenditure on primary education, health care and social welfare. India, does not have a middle class; the new graduates start with salaries as high as $120,000 a year. Such income is spent in luxury goods, while it would be of great help in promoting some private investments for the well being of the rest of the population."