India on The Move Case Analysis Essay

I. BackgroundA country with a 3.3 cardinal square Kilometers area and by 2002 India reached 1.1 billion spate with a growing count of 1.5%, diversity in languages, multi party democracy system, different spiritual groups, India is facing rapidly produce preservation entirely momentous reforms inquire to be passed still.The financial situation in India by 1992 wasnt the most gentle but had been growing 6% annually by 2002, act India into one of the principal growing economies in the world. By adopting the Washington Consensus, India had remove almost all substance and exports restrictions, and so the financial controls made by the world-wide Monetary Fund. As a consequence of a slack progress for privatization and all restrictions made for exotic ownership, FDI became slow to enter in India.The biggest obstacle in India to face the reality of growth inhabits in economics and social performances.II. Analysis (Case Overview)Although gross domestic product growth tell p er year was low, information technologies and back smudge operations were well known and represent 2% of the Indians GDP, the expectations aim that it would be continually growing and contributing with the gross domestic all overlap and a desirable 8% growth order per year and so did exports since the collapse of the Soviet Union. IT lead many Indians entrepreneurs develop in the field change magnitude unemployment rates. Fiscal deficit sullen into the sought of the proper(a) taxation policy. Moreover, conflicts with Pakistan, bureaucracy, privatization policy and corruption in the policy-making environment contribute on having India one timbre back. Finally, education and infrastructure were to be improved.All of the to a gameer assign led the tenth five year purpose seek up for fiscal stability, semipolitical and phantasmal as well.III. Questions wherefore did India experience relatively slow economic growth from independence until 1991?Huge population, 1 billion by 2002 with a growing rate of 1.5%, more than the country could actualize at the time, domestic issues with a fragmented society and religious problems. The political issue with Pakistan represents more expenditure contributing with the deficit. The executing of Soviet Union model as a developing strategy based on regulations in the private and public sector, including price controls high tariff, large bureaucracy which made a un attractive thriftiness for foreign investment in relation to another(prenominal) economies. In order to move forward with the economy growth, India had chosen to perform a market competitor economy removing almost all its restrictions lowering tariff.Why did Rao adopt the post-crisis, Washington Consensus strategy? How is it pruneing?A combination of the Soviet Union collapse and high oil prices and some other situations such as the crisis in the balance of payments, Prime Minister Rao turned back to the International Monetary Fund for assistance. Th e IMF would allow loans as long as India uses Washington Consensus policies into its economy. This policies need to be used to minimize the impact of the presidential term decisions otherwise the economy would completely collapse.These market reforms helped India on reducing its fiscal deficit and having a high GDP estimated in 2002-2003 5.9% and in 2003-2004 to 5.6%.How big bonk are Hindi-Muslim frictions? Demographic fragmentation? Deficits?Religious and political tensions in the regions have a in truth grownup impact in foreign investors decision-making because they perceive this as a threat to their investment. Some of the cases are the quasi(prenominal) war erupted between India and Pakistan in 1999 over the repugn state of Kashmir. Religious tensionbetween Hindu and Muslims in 1992 on Ayodhya temple dispute woo an estimated of 2000 people lives. In 2002, riots made the Supreme royal court banned all religious activities on the site.Is India an attractive site for fore ign direct investment?On this days India has become a more stalls economy and is growing rapidly representing a sizable country for foreign investors trust, having a strong support from Government policies, growth of information technologies and back exponent operations, English speaking people, a steady GDP growth.On the other hand, some of the issues still remain in the country hopefully with a truly willing government to solve social and political science conflicts, corruption and fiscal deficit.IV. Number InterpretationIndia corset Medium in Human Development Ranking, having the 124th place out of 173 countries. There are many differences crosswise states among literacy, sex ratio and population growth. Productivity in the public sector remains low in comparison with private sector. India has an annual growth rate 6%. In 2004 elections the country still is politically fragmented. Large size of deficit outstands.V. ConclusionIndia is go a potential economy in the world, si nce the 10th plan many indicators have improve and changed in order to be a more attractive market for foreign direct investment and for a growing GDP. Nevertheless, many obstacles should be overcome to consume India in the top of sagacity for investors all over the world, the first thing to bear in mind must be corruption which has been there since the very first days and so it is the political and religious conflicts in the region.All in all, if India is able to work on these issues primarily, the growtheconomy would come on with time and the country is going to play a big part of the international business game.ReferencesAstrella, K. (Feb. 24, 2012). India on the Move PowerPoint Slides. Retrieved from http//es.scribd.com/ medico/81228847/India-on-the-Move-FinalKumbhar, R. (Mar 24, 2012). India on the Move PowerPoint Slides. Retrieved from http//es.scribd.com/doc/86583756/India-on-the-Move