The Economy

December 5, 2019 India INC

The Economy

After initiating far reaching economic reforms of deregulation and liberalization since 1991, India has undergone a paradigm shift. There have also been fundamental and irreversible changes in the economy, government policies, outlook of business and industry and in the mindset of Indians in general. From a shortage economy of food and foreign exchange India has now become a surplus one; from an agro based economy it has emerged as a service oriented one; it is now a front runner in the emerging knowledge based new economy; Indian companies have become globally competitive and ‘Brand India’ is getting global recognition. India has been recognized as an attractive investment destination for investment and a large and growing market for business. The fundamentals of the Indian economy have become strong and stable. The macro-economic indicators are at present the best in the history of independent India with high growth, healthy foreign exchange reserves, and foreign investment and robust increase in exports and low inflation and interest rates. The unique feature of Indian economy has been high growth with stability.

The Indian economy has proved its strength and resilience when there have been crisis in other parts of the world including in Asia in recent years. India is rated as the fifth most attractive emerging retail market. It has been ranked second in a Global Retail Development Index of 30 developing countries drawn up by A. T. Kearney. The vibrant capital market comprises of 23 stock exchanges with over 9000 listed companies. The Bombay Stock Exchange is the second largest after NYSE and the stock market trading and settlement system are world class. India also has the third largest investor base in the world and also has one of the world’s lowest transaction costs based on screen-based transactions, paperless trading and a T+2 settlements cycle. There has been consistent high growth in recent years and there are definite indications of continuation of this trend in the future. Presently, India is emerging as a global player in Information Technology and is in the forefront of the unfolding new era of Knowledge Economy, with its large pool of scientific and creative human resources and R&D facilities. There is a change in the mindset of Indians who have become more confident and outward looking. The Indian market is being driven by a powerful new force of entrepreneurship unleashed by the economic reforms and liberalization of recent years.

To understand how a country is progressing, it takes certain indicators like the Macro Economic Indicators to compare the present trends to that of the past and to set the future according to it.

  India’s Macro Economic Indicators