Economic Growth In India

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One of the benefits of economic growth in India is the people living in India have higher average incomes. This empowers consumers in India to enjoy more goods and services and also enjoy better living standards. Thus, the increase in consumptions will increase the standard of living of the people in India. Next, economic growth in India leads to lower unemployment as the employment opportunities arise. This is because with higher output, increasing production and positive economic growth, firms internal requirement for workers gradually increases, they tend to employ more workers. Therefore, increasing the productivity and creating more employment in India. Furthermore, lower government borrowing is…show more content…
Increased tax revenues allow the government in India to spend more on public services, such as infrastructure, education, healthcare and social welfare. Intentionally, resulting in superior public services. Moreover, the government in India can spend the money on protecting the environment. The higher real GDP of India enables a society to contribute more resources to encouraging recycling, reuse and the use of renewable resources. Nonetheless, India’s economic growth enhanced business confidence. Economic growth in India has a positive effect on profits and business confidence. It creates a positive effect on the confidence that people in India should have when they are running their businesses. As the profits of small firms and businesses in India gradually increase with economic growth, their business confidence rises and they exert more efforts to grow big. Besides, India’s economic growth increases investment. Economic growth in India boosts investment, consequently boosts a virtuous cycle of economic growth in…show more content…
When growth increases, production and consumption increase, there are prone to be considerable external costs as a result. For example, deforestation and the knock-on impacts like increased flooding; desertification of regions suffering over-production; pollution of rivers; depletion of nonrenewable resources; long term climate change; noise pollution; lower air quality arising from air pollution and road congestion. As the economic growth in India increases, output rises, consumption rises, more waste is produced. Therefore, pollution and congestion will also increase. This will cause health issues like asthma, thus, it will reduce the quality of life. Economic growth in India also means greater use of raw materials. This can speed up the depletion of nonrenewable
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