The Economic Growth of India

Paper Summary:

This paper explains that, beginning in the early 1990s, India began to redirect its political and economic apparatus towards a more free-market orientation, which has resulted in a cycle of remarkable growth and expansion. The author points out that, beginning in 1991, political leaders ended the traditional License Raj economic model, which resulted in monopolistic behavior and stifled foreign direct investment. The paper relates that some of India's economic expansion has been attributed to its insistence on expanding public expenditures within the market. The author points out that India deems all public expenditure to be development related and views this type of investment as a requirement rather than a socially driven discretionary investment. The paper reports that a value added tax (VAT), other tax code adjustments and a fully convertible currency were introduced.

Table of Contents:
Introduction
Initial Reforms
Market Liberalization
Current Economic Status

From the Paper:

"The country's revenue expenditures have increased across some spending segments by as much as 400% between 1990 and 2004 and this spending has continued to fuel economic growth. These large spending and investment packages are achievable because of the market reforms made during 1991. While much of India's population that exceeds 1b individuals is classified as impoverished, it still represents one of the largest tax bases in the world after China. Such a large potential tax base was going relatively untouched until 1991 when the tax codes and collection apparatus procedures were also reformed."

Sample of Sources Used:

• Ganguly, S. India as an Emerging Power. Frank Cass, New York; 2003.
• "Hunting for Mushrooms in India: How Sustainable is India's Growth?" Business Today, 14(2007): 215.
• Pandit, R. "Why Believe in India." India Abroad, XXXVI/11(2005): A20.
• Rao, S. "The Reforms Experience." The Hindu, Chennai, Sep.5(2006): 1.

More papers on The Economic Growth of India:

• Analytical Essay # 133110 : "Economic Growth of India"
• Research Paper # 42946 : "Economic Growth in India"
• Analytical Essay # 149686 : "Indian Economic Growth"

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