Current Major Economic Issues (India and Current Economic Affairs) RECAP
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1 Current Major Economic Issues (India and Current Economic Affairs) RECAP
2 Introduction INDIA: RISING ECONOMIC GIANT? OR?
3 Departing radically from previously sociallyoriented policies, India began in the 1990s to develop an openmarket economy centered on economic liberalization, industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment.
4 This accelerated the country's growth, which has averaged more than 7% per year since 1997 and hit 10% in Services are the major source of economic growth, accounting for 55% of output as India became a major exporter of information technology services and software workers. Its 2010 GDP of $4 trillion ranks it 5 th in the world
5 Problems remain, however. Growth has been accompanied by increasing joblessness and widespread poverty and gross inequality still persist. Widespread access to basic social services still eludes most Indians.
6 Social tensions and communal conflicts fester even as ruralurban migration continues unabated. Ominously, the growth figures from 2011 appear to signal an economic slowdown.
7 The Indian economy will continue to grow as a global economic powerhouse. India s development through fostering economic growth has to be seen in terms of how formidable obstacles such as widespread poverty and one of the largest populations are handled. While this growth is impressive, India continues to have hundreds of millions in abject poverty and much of the economic prosperity has been fairly localized to specific regions and sectors. The booming software and technology sector receives daily world attention, however those languishing in poverty remain largely ignored.
8 Thus, it is important to understand whether the nascent economic prosperity has also caused an increase in income inequality. Economic theories vary on both the causes and implications of income equality, however empirical evidence indicates that India has been able to maintain low income inequality during periods of significant economic growth. Is this true? It is important to note, that India s economic miracle is a recent phenomenon and that future prospects are far from certain. How well the Indian people and government will be able to channel current growth into long-term prosperity remains to be seen. To be Investigated
9 T.N.Ninan Business Economist Six trends in the Indian Economy 1. acquiring of scale 2. spread of connectivity and awareness 3. the growth of the middle class 4. growing problems of growth 5. India s growing openness to the world 6. the continuing dominance of youth demographic advantage INEQUALITY ISSUES ARE ABSENT
10 Inequality and Empowerment It is useful to distinguish between different causes of the limitation of democratic practice. Given the democratic institutions, the practice of democracy may be limited for at least three distinct reasons. First, democratic institutions may become dysfunctional due to, say, corruption or inefficiency. Examples include electoral fraud and the paralysis of the legal system through case overload. Second, there may be inadequate use of functional democratic institutions on the part of concerned persons or groups, often due to limited understanding or skill, and some- times even lack of motivation. Low electoral participation, and the powerlessness of the public in the face of complex legal proceedings, are some illustrations, among many others. Amartya Sen and Jean Dreze
11 At the risk of some over-simplification, the foundations of democratic practice may, thus, be described as facility (functional democratic institutions), involvement (informed public engagement with these institutions), and equity (a fair distribution of power). The central relevance of equity arises from the fact that a fair distribution of power is a basic indeed fundamental requirement of democracy. Amartya Sen and Jean Dreze
12 The state is no longer that autonomous and increasingly the corporate capitalist class which is also getting integrated by forward and backward linkages to global capital is dictating to the state; the supervision of the state by an elected political leadership, a permanent bureaucracy and an independent judiciary; the negotiation of class interests through a multi-party electoral system; This remains but threatened by growing inequality which requires other kinds of measurement No longer a protectionist regime discouraging the entry of foreign capital and promoting import substitution; Diminishing role of the state in direct economic activities and withdrawal of the state in critical areas such as education
13 India now stands, together with China, as the new economic giants set to challenge the long-running hegemony of the West. Can they and Asian economies duck the global economic conditions?
14 While we explore India s Economy, Society, Culture and Politics From a macro economic point of view we also face a situation where conventional economic theories do not fully grasp the nature of global economic changes.
15 Understanding/Analysing National Economies Going Beyond Nation States Understanding Current Global Affairs and Macro Economic Issues An Attempt via an analysis of Contemporary India Economic Growth Trade and Development Equity, Growth and Development Nature/Ecology/Environment?
16 [PDF]India: A New Player in Asian Production Networks - United... STUDIES IN TRADE AND INVESTMENT 75. INDIA: A NEW PLAYER. IN ASIAN PRODUCTION NETWORKS? Edited by Witada Anukoonwattaka and Mia Mikic /Growth_Commission_Equity_Growth_Globalizing_ World.pdf Nature/Ecology/ Environment or what is referred to as Sustainable Development? In Macro economic terms as Environment and development Issues
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