The recent International Monetary Fund (IMF) forecasts showing promising growth in India varying between 7.4% and 7.8% for 2018-19 and 2019-2020, respectively, are auspicious for the country.
Previously, the World Bank’s Global Economic Prospective Report indicated that the expected growth of 7.3% of India was a good omen. Forecasts are very important against the background of the persistent global economic depression.
Although the world’s leading economies have seen a slowdown, economic growth has remained resilient in India. However, the main challenge facing the Indian government remains the need to generate a satisfactory number of jobs, as the number of unemployed and underemployed has increased over the years.
Because of the competition, we witness a syndrome of “performing or perishing”. Surely the syndrome is affecting businesses and public sector businesses worldwide.
Although the abundance of cheap labor and the initiative towards FDI (foreign direct investment) have made China the most promising emerging economy in the world, it is not fair to treat India and China in a category of economic reforms. because the changes in these countries have followed various courses
China has been extremely aggressive in its economic reforms and has started to create special export-oriented economic zones back in 1978. China had captured around 4% of the world trade share until a few years ago. India could hardly reach around 0.7 percent.
However, India has strengthened its medium-term export strategy for the period 2002-2007. Moreover, India started its economic reforms in 1991, China had started such reforms as far back as 1978.
Although foreign direct investment is considerably higher in China than in India, investment returns are better in India because of the superior corporate governance model and the high quality of commercial companies. Numerous Indian business experts and investors have carved out a niche abroad, particularly in the fields of information technology, biotechnology, pharmaceuticals and healthcare, in which China has yet to grasp.
In addition, Indigenous indigenous and Indian industries will certainly give it a huge advantage over Chinese FDIs. Manufacturing progress driven by Chinese exports is based primarily on FDI, which is certainly not a substitute for national entrepreneurship.
India’s strength lies in creating its internal markets as it already has a rapidly growing middle class. Financial relationships are not as simple as they seem and require constant monitoring by the competent authorities. The malfunctioning of the financial system in Japan over the past two years has proved to be pernicious. This problem can be exacerbated by the lack of mature markets that are sometimes depressed and sometimes lively without apparent reasons.
Recently in Davos in the World Economic Forum, India has carried out all the necessary requirements for a good business-friendly environment for investors all over the world. Undoubtedly, China’s high savings rate, good infrastructure and production are far ahead of India, but this can not be compared to the expansion of the services-based Indian system and institutional stability deeply entwined in pluralism and democracy.
On the other hand, India has a vast network of operational and support networks, ranging from rural to urban areas that guarantee a much higher rate of return on assets.
During the post-1991 era, economic reforms in India have made significant progress in a number of areas, including intensive knowledge-based services and skills such as telecommunications, pharmaceuticals, biotechnology, professional medical services, teachers and management professionals, etc.
According to a report prepared by Goldman Sachs published in April 2004, in the next two decades or so, India and China would certainly have emerged as the major economies of the world.
The report also admits that in the long run India will emerge even larger and gradually overshadow China.
The transformation of India into one of the world’s major economies is a phenomenal result.
Foreign investors have already pumped a huge amount, over 23 billion dollars in Indian stock markets and about 245 new foreign investors have registered with the stock market regulatory body (SEBI) in recent years.
In addition, up to 600 new investors were allowed to operate on Indian stock exchanges, thus leading to a 125% increase in the Sensex and a 148% increase on the Bombay Exchange.
According to the recent Nasscom report, quoted by Stephen David, India controlled some 44 percent of the global offshore software outsourcing market with revenues of $ 17.2 billion a few years ago. India’s tremendous progress in IT has opened a new era of Indian companies aggressively capturing foreign markets.
Despite its limitations, in all honesty it should be recognized that overall Indian economic reforms are a move in the right direction, but to leave an indelible mark all over the world we must try to expand the network of economic liberalization and emerge from the shadow of criticism , but of course with caution.
Economic reforms with a human and receptive approach involving educational facilities, jobs and the development of new channels of communication and FDI will certainly give life to a new system of evolution of the status of the world’s economic giant.
Christine Lagarde, director of the IMF, said that India could soon outpace China as the fastest growing economy. India has every reason to celebrate because it has already overtaken China and the United States as the main destination for foreign direct investment. Purav Jhaveri, CEO of Franklin Templeton Investments’ investment strategy, said the Indian economy is poised to produce better and promising trends, even the strong economies of the world.
The solid economic development strategy of the current Indian government has created a new vision full of promises for an extremely bright future for India.
Time has not been measured for years but by what the nation is doing, by how people feel and in the end what the country’s achievements are in terms of economic growth combined with socio-economic and political justice.
Measuring with this yardstick, India has achieved great opportunities and has been able to reach different milestones both in the field of economic expansion and in improving the scientific and technological value even in a short space of time, despite the numerous problems relating to infrastructure. Needless to say, India has carved out a niche for itself with regard to social reforms and consumer rights.
India has made every effort to enhance transparency in all spheres of life. Although some criticisms are of the opinion that privacy and personal security can be compromised. Furthermore, there are challenges regarding the rigid labor market and, above all, the need to create jobs and market reform expectations.
There has been a paradigm shift from traditionalism to modernity to post-modernity and surprisingly now post-post-modernity.
The purpose of the comparison is to familiarize with key issues and debates in the economic field of developing companies with particular reference to India.
There are a myriad of ways through which consumer rights can be protected and policy makers must address these parameters head on.