With the liberalization, privatization and globalization of Indian economy since 1991, the country has witnessed an unprecedented growth spurt. As the economy opened up, foreign investment through FIIs and FDI has gone up. India became a major player in global IT services industry. Domestic savings rate too has witnessed a growth. Cumulatively, investment rate has gone up. Indian corporates started acquiring overseas companies too. Simply put, India is “resurgent and en route to prosperity!”
The technological advancement and convergence in communication and computation that ushered in “global web-enabled platform for multiple forms of sharing knowledge and work, irrespective of time, distance, and geography”, making the world simply look flat, has dramatically changed the global business environment. Competition has become intense among the global players, as a result of which new business models—outsourcing and offshoring of manufacturing activities and services to countries that are endowed with low-cost labor—have emerged. And, India has emerged as one of the prime beneficiaries of these global developments.
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