India is one of the emerging economies that has shown considerable economic growth this year. For instance, it has been calculated that the country will achieve over 7% rise in GDP this fiscal year (ET Bureau, 2018). This growth is specifically remarkable as other Asian countries could not display such optimistic results. The economic development in India has been boosted by a number of effective reforms the government launched several years ago. Fiscal reforms and the transformations in the agricultural sector have resulted in the rise of entrepreneurial activity (Crabtree, 2018). The government also supports manufacturing and foreign investment, which contributes to the sustainable development of the economy.
Indian market is characterized by the advantages and disadvantages that can have an influence on the country’s economic development. Demographic features of the country’s population can be regarded as advantageous since the labor force is young and ethnically diverse. Nevertheless, some laws have a negative impact on the entrepreneurial activity as companies cannot fire employees, which weakens competitiveness. Another advantage is the focus on manufacturing and investment. The Indian market has the necessary resources to compete effectively with other countries. However, the government pays insufficient attention to infrastructure (with the focus on roads), which slows down the development of the agricultural sector and manufacturing (Pradhan & Bagchi, 2013). Although the buying capacity in some areas improved considerably, the vast majority of people live in poverty, which has a negative effect on the market’s development. Thousands of young people have the knowledge and skills to compete in the labor market, but millions remain unnoticed by the government. It is essential to ensure young people’s access to proper education. The Indian government should consider these and other advantages and disadvantages of the market and introduce the corresponding reforms.
References
Crabtree, J. (2018). There may be a way for India to achieve double-digit economic growth. CNBC. Web.
ET Bureau. (2018). India to grow 7.3% this fiscal, fastest across Asia: ADB.The Economic Times. Web.
Pradhan, R. P., & Bagchi, T. P. (2013). Effect of transportation infrastructure on economic growth in India: The VECM approach. Research in Transportation Economics, 38(1), 139-148.