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ehind than other BRIC nations" India's GDP is dec#ining steadi#y in the past $ years" Inf#ation : Inf#ation is %ery high in India" &he Who#esa#e Price Inf#ation is at '"1 percent" RBI is trying to fight the inf#ation !y raising the repo rate from (")$ percent to ("$ percent" It has !een o!ser%ed historica##y that India has !een s#o* at adopting to and accepting changes" India has a#*ays !een reacti%e than !eing proacti%e" + r economy is #arge#y dependent on American economy" ,e* ma-or reasons that echoes thro gh the Indians for the nderperformance of India is : A) Poor reg #ations and #egis#ations" B) Po#itica# pro!#ems" C) .tagnant R/D" D) Corr ption" 0) 1ac2 of Reforms" Another factor is the #ac2 of inno%ation d e to *hich India is headed in the *rong direction" 1ac2 of go%ernment s pport and its reg #ations gi%es no room for inno%ation" By adopting an age o#d ris23a%erse attit de from o#d
management4 India is not adopting to the hectic changes going on in the rest of the g#o!e" India is sti## a ser%ice oriented mar2et *hich means that *e are a#*ays3dependent mar2et" I5, said that4 6India's acti%ity s ffered from *aning ! siness confidence amid s#o* appro%a#s for ne* pro-ects4 s# ggish str ct ra# reforms4 po#icy rate hi2es designed to rein in inf#ation4 and f#agging e7terna# demand"6 &he !iggest ad%antage of India is its entreprene ria# ta#ent ! t the Indian entreprene rs are in%esting o tside the co ntry" &he fig re *as 81'"9 !i##ion in ):11" India has ne%er !een a!#e to increase its g#o!a# competiti%enesses *hich is ref#ected in o r co ntry's c rrent acco nt deficit" + r import of ser%ices and goods has a#*ays !een higher than o r e7ports" And this deficit is !eing f nded !y foreign capita#" As compared to other BRIC nations India is not gaining from r pee depreciation as *e are not a ma-or e7porting economy" + r main imports go#d and oi# are paid for in do##ars" &o hedge against inf#ation4 cons mers ac; ired go#d4 ma2ing the co ntry re#iant on foreign capita# to finance its trade deficit" I& ser%ices are the on#y ! siness *hich !rings in re%en e in do##ars" &he ma-or fai# in India's part is that it too2 to ser%ices ear#y on infact *hen it sho #d ha%e concentrated on man fact ring4 po*er and infrastr ct re" <s a##y nations ! i#d their GDP first !y ! i#ding their infrastr ct re and then mo%ing into ser%ices" India !ecame a ser%ice #eader *itho t ta2ing on infrastr ct re" 5an fact ring needs transparent r #es and infrastr ct res
*hich are re#ia!#e ! t India #ac2s !oth" India is fai#ing to se its #o* s2i##ed #a!ors entering the mar2ets #oo2ing for -o!s" India g aranteed s !sidies to the poor" &he s !sidies cons me a!o t )"( percent of GDP4 ! t d e to corr ption and inefficient administration the poor ha%en't !een reaping the !enefits" Witho t proper and efficient reforms India *i## ta2e considera!#e time to sta!i#i=e the economy" India is a #a!or a! ndant co ntry and needs to #oo2 into man fact ring sector" India can !ecome a man fact ring po*erho se4 pro%ided it pgrades roads4 po*er systems" Reforms in #a!or #a*s and ! siness reg #ations *i## he#p in sta!i#i=ing the economy"
)) Reco%ery of nations after recession" Ans : Brazil : Reco%ery: Bra=i# may !e the first of many nations to gro* o t of the recession" Bra=i# in%ested money in p !#ic infrastr ct re pro-ects4 c t ta7es on cars and passed ta7 !rea2s on companies and indi%id a#s" Pr dent po#icies ena!#ed Bra=i# to respond to the g#o!a# crisis" &he meas res ta2en !y Bra=i# *ere co nter3cyc#ica#4 *hich means *hat it sa%ed d ring good times can !e sed d ring a do*nt rn in economy" Bra=i# ndertoo2 many po#icies that ena!#ed it to de%e#op coping mechanisms amidst the c rrent g#o!a# financia# crisis4 s ch as ta7 reform4 macroeconomic sta!i#i=ation" Present: Bra=i# is e7periencing its #argest economic e7pansion in three decades and it is #essening the gap !et*een the rich and the poor" Bra=i# has the !est managed companies across many sectors4 s ch as a%iation4 a to4 !an2ing and financia#4 and cons mer goods
Bra=i# *on in%estment3grade stat s for its so%ereign de!t4 a ma-or accomp#ishment for a co ntry #onged p#ag ed !y hyperinf#ation and defa #ts" &he socia# programs ha%e !een e7panded red cing po%erty rates and strengthening a Bra=i#ian midd#e c#ass" +pport nities and , t re : Bra=i# is the !iggest e7porter *or#d*ide of coffee4 meat4 - ices4 and s gar4 and the second !iggest *or#d*ide of grains" Petro!ras has estimated that there are fi%e to eight !i##ion !arre#s of cr de oi# and nat ra# gas in the fie#d" ,or Bra=i# *ith recent economic reforms4increasing a##iances *ith non3Western nations and pro#iferation of oi# reser%es ha%e transformed the nation into a co ntry *ith so nd macroeconomic po#icies" Russia Reco%ery: R ssia>s income started gro*ing significant#y d e to its oi# re%en e" &he domestic demand and e7ports he#ped R ssia remain af#oat"critica# decisions re#ated to prod ction4 cons mption4 and distri! tion *ere centra##y p#anned and enforced"&he go%ernment s pported R ssian ind stries s ch as ho sing mar2et and a tomo!i#e ind stry" &he go%ernment red ced the ! dget deficit to ? percent of GDP4 p ##ing the economy !ac2 to a path of s staina!#e gro*th" Positi%e res #ts in )::@ *ere noted from %ario s sectors4 s ch as a to4 the
mi#itary and the agric #t re ind stry" 5acroeconomic sta!i#ity *as pi%ota# to the co ntry's economic gro*th" +pport nities and , t re: , t re de%e#opment are !ased on macroeconomic po#icies and a !a#anced ! dget" Whi#e poor in%estment and inefficient instit tions remain h ge drags on R ssia"R ssia has a! ndant minera# reso rces4 #i2e coa# reser%es4nat ra# gas and oi#" It is the *or#d>s #argest oi# prod cer and the second #argest e7porter after the +P0C" 5osco* is the financia#4 po#itica#4 and economic center of R ssia4 *ith o%er $:A of the co ntry>s credit instit tions and foreign direct in%estment" Bo*e%er4 on a positi%e note4 the co ntry to ts a @@A ad #t #iteracy rate4 *hich is ; ite a#igned and compara!#e to the de%e#oped *or#d"
China Reco%ery : China has had do !#e3digit gro*th for the past ?: years ! t its e7port sector4 *hich acco nts for C:A of GDP4 *as h rt !y the dec#ine of demand" &o ma2e p for the shortfa##4 the go%ernment p mped in Ctn y an DE?@'!n) into spending on p !#ic *or2s4 cons mer s !sidies and other economic stim #ants" Ban2 #ending *as increased and demand had gro*n for stee# and po*er"
A#so China in%ested into fi7ed assets !et*een )::9 and ):1:" &he monetary po#icy stim #ated a massi%e credit e7pansion in China" &he Chinese strategy reinforced gro*th centered in in%estments and e7ports" Internationa#i=ation of Chinese companies4 especia##y the state3o*ned 4 has !een a ma-or trend post3)::9" +pport nities and , t re : China *i## ha%e to ta2e a deeper #oo2 at its ser%ices and domestic mar2et China faces its !iggest pro!#em and that is its dependence on e7ports" A #arge s !set of the e7port iss e is the fact that China has ro gh#y 1$: mi##ion itinerantFmigrant *or2ers" B t China is #oo2ing into its pro!#em4 and is *or2ing hard to stim #ate its domestic economy"