Economic Liberalization In India

Economic factors relate to the general condition of the economy within which a business operates. It comprises of the factors and forces concerned with means of production and distribution of wealth. It refers to the nature of economic system, economic policies of the country, organisation of capital and money markets, GDP, income level, growth rate, inflation rate, interest rates, money supply, and unemployment rate. The Indian economy is currently the 9th largest in the world by nominal GDP and the 4th largest by purchasing power parity (PPP). Economic growth rates are projected at around 7.5 per cent -8 per cent for the financial year 2011-2012. Economic Liberalisation was when India adopted free market principles and it included opening

They have become centres of rising industries and destination for foreign investment and firms. With GDP growth predicted to be around 5 per cent over this decade, India is set to reap the benefits of development. This time round, the good cheer is likely to spread over a wider geographical area covering smaller cities and towns. Tier II and Tier III cities have tremendous potential for firms in the outsourcing, IT offshoring, retail and real estate development sectors. This is really where the teeming Indian middle class lives. Companies are going there because they see potential. In terms of education, several of these cities are home to good quality universities that produce thousands of graduates and engineers. In terms of employment, with outsourcing, IT and retail gunning for these smaller cities in search of space, employees and customers. The government promotes these cities as investment options to decongest Tier I cities and for a more uniform development of the

Green revolution and creation of industrial zones in rural areas has ushered in a rich farmer class with an appetite for conspicuous consumption. Sanand (a small town in Gujarat where the Nano factory is located) has become one of the booming entrepreneurial centers and boasts of a number of high-end car models sold in India. It has attracted commitments of billions of US dollars in investments from some of world 's largest companies. The Indian middle class (estimated to be 150 million people by McKinsey) is fast becoming used to Western culture. With increasing disposable incomes, a larger middle class has been created whose needs have gone beyond the basic 'roti, kapda aur makan '. The sheer number of consumers has created a huge market for all kinds of goods. Hence the booming sales of consumer durables and vehicles. This has created a huge problem of managing traffic and providing adequate parking place for vehicles in already congested urban areas. The standard of living in India shows large disparity. Rural areas exist with very basic medical facilities, while cities boast of world class medical establishments. The World Bank estimates that a third of the global poor now reside in India. Although Indian economy has grown steadily over the last two decades, its growth has been uneven when comparing different social or