For this purpose, study utilizes the annual frequency of time series data from 1989 to 2008. In this study multiple-regression model is used to estimate the effects of independent factors on the economic growth in India.Empirical findings indicate that Growth rate of gross capital formation, Growth rate of exports of goods and services and Labor force is correlated positively with economic growth in India in the long run. Inflation rate, Official Exchange rate, Domestic credit to private sector has negative impact on economic growth and these determinants slow down the growth rate of Indian economy in short run and long run. Cautious, But Optimistic PUB. DATE May 2008 The author reflects upon the pace of economic growth in India.
Ques – Briefly explain the impact of globalization on Indian economy post 1991? Globalization means how nations or countries are coming together as one big global economy and making international trade more easily. Globalization is the interaction of the local market with the international market. Globalization can be defined as a process associated with increasing openness for world ,growing economic interdependence and developing economic integration in the world economy. Economic reforms aims at integrating the Indian economy with the global economy, as a result, there will be unrestricted flow of goods and services, technology and expertise between India and rest of the world.
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 the benefit of economic growth in India. This is due to the increase in tax revenues for the government in India, which make them stronger, so there is less need for the government to spend money on benefits such as unemployment benefit for the people in India. The higher tax revenues for the government in India because of their economic growth has helped to reduce government borrowing.
Similar findings from oil exporting countries were found by Gawad and Muramalla (2013), who argue that FDI has a positive impact on exports of the Oil and Gas industries of 17 countries between 1995 and 2011. China also provides a clear example on the impacts of FDI on exports. The research of Naughton and Lardy (1996) and Zhang (2005) have empirically demonstrated a positive relationship between FDI and exports in china. From India, Banga (2003) finds that FDI had a positive impact on the diversification of Indian exports during the periods from 1994-1995 and 1999-2000. Rahmaddi and Ichihashi (2012) also finds a positive relationship in the Indonesian manufacturing sector as a result of the presence of FDI during 1990-2008.
For example, my friend is studying the role of heritage in attracting foreigners to Oman. She used to make interviews with foreigners to gain an understanding of opinions and motivations. Quantitative research is used to generate numerical data to measure a problem. It is used to underline results covering large sample of population (Bolden& Moscarola, 2000). I think quantitative research transforms the data to formulate facts in the research.
The village economic set up was also affected, and India has transformed from net exporter to net importer. Regarding agricultural sector, there was little spending by Government on improving land productivity, since its only interest was to maximize rents and secure its share of
The construction industry is an important indicator of the development as it creates investment opportunities across many other sectors. In India construction industry is the second largest industry after agriculture industry. Construction industry can be divided into mainly three segments: • Real estate construction includes residential and commercial construction • Infrastructure building like roads, power, airports, railways etc. • Industrial construction like oil and gas refineries, pipelines textiles etc. The construction industry is highly fragmented in India.
The industry holds an important place in the economy of the country because of its strong connection to the other sectors such as construction, transportation, coal and power. This industry is also one of the major contributors of treasury by way of indirect taxes. FACTS OF INDIAN CEMENT
In the aspect of employment, next to agricultural sector, manufacturing sector gives more employment to people. There are several industries in manufacturing sector, among them automobile industry has playing prominent role in the aspects of production, sales and employment. Automobile industry is the key driver of Indian economy. It plays a vital role in the economy and industrial development of Indian. It supports the development of some other industries by the procurement of raw material, those basic industries are steel, metal, plastic, petrochemicals, rubber, glass, and so on.
Also, as the manufacturing industry is built on the production of not only the major industrial products but also non-essential goods such as spares, accessories etc, thus any severe downturn in the economy can have a crippling effect on it. The industry is also having its inherent deficiencies such as infrastructure inefficiencies, shortage of skilled labour, high transaction cost, procedural delays, lack of awareness of global technologies & trends in Manufacturing IT etc. which are eroding away the competitive advantage of the manufacturing sector in India. It is also observed that the productivity of the Indian manufacturing industry is approximately 1/5th of the productivity