Page 6 | Emerging Markets Journal | Spring 2013

indian economy grows

despite recent problems

By Connor Reed

This past October, Indiana University

received the rare pleasure of hosting
one of the most insightful businessmen
and political activists working in the
field of nternational relations today,
Mr. Tarun Das. Mr. Das is the former
director of the Confederation of Indian
Industry, one of the largest business
conglomerates in the world, as well
as the current president of the Aspen
Institute for research in international
relations. His organization has made
massive strides in U.S.-India relations.
The Aspen Institute is also forging and
solidifying relationships with other

AGRICULTURE

17.2%

emerging markets throughout the world.

Mr. Das gave two lectures, one
on economic developments and
history in India, and another on how
businesses have influenced public
policy. In addition to Dass lectures,
Professor Rajendra Abhyankar, a
former Indian ambassador and an
instructor in the School of Public and
Environmental Affairs, also discussed
his opinion on
Indias economic
situation. In particular, Abhyankar
touched on some of the major activities
in India, todaythough a more
valid question might be what isnt an

INDIAS GDP
BREAKDOWN
INDUSTRY

29.1%

2008 Estimates

Inflation: 7.8%
Growth Rate: 9%
GDP: $1.209 Trillion
GDP per capita: $1016
SERVICES

53.7%

BUSINESS.MAPSOFINDIA.COM / SOURCE

economic activity in India these days.

Mr. Das opened up his discussion
with a brief economic history of India.
The nation received independence from
Britain in the year 1947. Thereafter,
the government played a heavy role in
micromanaging the economy, by 1990,
India was flirting with bankruptcy at
a GDP growth rate of only 3%. The
government had increased interest
rates so much that private businesses
could not invest or borrow money, and
much of Dass work involved fighting
the government for change with the
Confederation for Indian Industry.
He ultimately proved successful, and
in 1991, India experienced economic
liberalization and deregulation on a
massive scale. The reformsmany of
which were a result of Dass campaign
against
excessive
government
regulationsparked competition in
the Indian economy and the GDP
growth rate rose to 7%. From 2004 to
2008, India was flourishing at over 9%
GDP growth, and since then, India has
been able to refocus on the shaping
of public policy and social reforms.
Both Das and Abhyankar project a
significant rise in the Indian economic
strength in two key areas, information
technology and industrial components.
Within the next few years, there will be
a greater number of products baring the
sticker made in Indiaespecially in
relation to communication hardware,
computer software and small industrial
parts and pieces. Despite the challenges
the country country currently Das is
confident that the vigor and capabilities
of thousands of young Indian men and
women will help the worlds second
most-populous nation develop and
advance its position as a major political
and economic force on the world stage.