India is emerging as an economic powerhouse driven by a strong rupee, a robust capital market and healthy performance by India Inc.
India has come a long way, since it embraced the market economy in 1991. The economy has undergone significant changes since then, which have made it an attractive global destination for businesses and trade. The forces of liberalization and deregulation have unleashed an environment that is on par with some of the best in the world. Its strong macroeconomic performance (with average annual GDP growth of about 6%) has propelled it to emerge as the fourth largest economy in the world, on account of purchasing power parity.
The recent World Bank study describes India as an emerging giant that is likely to become an economic powerhouse over the next 25 years. The study further reveals that India has a huge pool of well-educated, technically-trained people, proportionately much larger than in China or South-East Asia; India's number of scientists and engineers, for example, is second only to that of the United States. If their skills can be tapped by economic reform, they represent an unparalleled resource. The economy is witnessing a stable macroeconomic framework of high economic growth supported by modest agricultural growth and a robust industrial and services sector growth. Accordingly, the strength of the Indian economy is evidenced by key macroeconomic indicators like low inflation rate, burgeoning foreign exchange reserves and a favorable interest rate regime. These indicators are at work to help India become the emerging economic powerhouse. |
