India on The Move Case Analysis Essay

I. BackgroundA country with a 3.3 million squ atomic number 18 Kilometers expanse and by 2002 India reached 1.1 billion population with a exploitation yard of 1.5%, variation in languages, multi party democracy system, different religious groups, India is facing promptly growth preservation precisely significant reforms emergency to be passed still.The pecuniary situation in India by 1992 wasnt the most attractive but had been growing 6% annu in all toldy by 2002, turning India into one of the mavin growing economies in the world. By adopting the cap Consensus, India had re hold out almost all import and exports restrictions, and so the financial controls made by the International monetary Fund. As a consequence of a slow progress for privatization and all restrictions made for inappropriate ownership, FDI became slow to enter in India.The biggest obstacle in India to face the reality of growth rest in economics and brotherly performances.II. Analysis (Case Overview) Although GDP growth graze per year was low, information technologies and dressing office operations were well known and represent 2% of the Indians GDP, the expectations aim that it would be continually growing and contributing with the swinish domestic product and a desirable 8% growth rate per year and so did exports since the fall flat of the Soviet Union. IT led many Indians entrepreneurs prepare in the field decreasing unemployment rates. Fiscal deficit turned into the seek of the right taxation policy. Moreover, conflicts with Pakistan, bureaucracy, privatization policy and corruption in the political surround contribute on having India one step back. Finally, education and infrastructure were to be improved.All of the above led the 10th five year proposal seek up for financial stability, political and religious as well.III. Questionswhy did India experience relatively slow economic growth from independence until 1991? colossal population, 1 billion by 2002 with a grow ing rate of 1.5%, more than than the country could support at the time, domestic issues with a fragmented clubhouse and religious problems. The political issue with Pakistan represents more expenditure contributing with the deficit. The executing of Soviet Union model as a developing dodging based on regulations in the private and public sector, including price controls spirited tariff, huge bureaucracy which made a unattractive sparing for foreign investment in relation to other economies. In say to move forward with the economy growth, India had chosen to perform a market rivalry economy removing almost all its restrictions lowering tariff.Why did Rao adopt the post-crisis, Washington Consensus strategy? How is it working?A combination of the Soviet Union collapse and high oil prices and any(prenominal) other situations such as the crisis in the balance of payments, Prime Minister Rao turned back to the International financial Fund for assistance. The IMF would grant loa ns as long as India uses Washington Consensus policies into its economy. This policies need to be used to minimize the impact of the government decisions otherwise the economy would completely collapse.These market reforms helped India on reducing its fiscal deficit and having a higher GDP estimated in 2002-2003 5.9% and in 2003-2004 to 5.6%.How big deal are Hindu-Muslim frictions? Demographic fragmentation? Deficits?Religious and political tensions in the regions have a precise bad impact in foreign investors decision-making because they perceive this as a threat to their investment. Some of the cases are the quasi war erupted amongst India and Pakistan in 1999 over the disputed state of Kashmir. Religious tension amidst Hindu and Muslims in 1992 on Ayodhya temple dispute cost an estimated of 2000 people lives. In 2002, riots made the Supreme Court banned all religious activities on the site.Is India an attractive site for foreign make investment?On this days India has become a more stable economy and is growing rapidly representing a good country for foreign investors trust, having a vigorous support from Government policies, growth of information technologies and back office operations, face speaking people, a steady GDP growth.On the other hand, some of the issues still remain in the country hopefully with a very willing government to solve social and politics conflicts, corruption and fiscal deficit.IV. Number InterpretationIndia stays Medium in Human phylogeny Ranking, having the 124th place out of 173 countries. There are many differences across states among literacy, provoke ratio and population growth. Productivity in the public sector remains low in comparison with private sector. India has an annual growth rate 6%. In 2004 elections the country still is politically fragmented. Large sizing of deficit outstands.V. ConclusionIndia is becoming a potential economy in the world, since the 10th plan many indicators have improve and changed in order to be a more attractive market for foreign direct investment and for a growing GDP. Nevertheless, many obstacles should be overcome to outfox India in the top of mind for investors all over the world, the first function to bear in mind must be corruption which has been in that location since the very first days and so it is the political and religious conflicts in the region.All in all, if India is able to work on these issues primarily, the growtheconomy would come along with time and the country is going to play a big part of the international business game.ReferencesAstrella, K. (Feb. 24, 2012). India on the Move PowerPoint Slides. Retrieved from http//es.scribd.com/doc/81228847/India-on-the-Move-FinalKumbhar, R. (Mar 24, 2012). India on the Move PowerPoint Slides. Retrieved from http//es.scribd.com/doc/86583756/India-on-the-Move