Overview of the Economy
Presently, India has been indicated to exhibit the fastest growing economy in the world. Many statistical studies have shown that the Gross Domestic Product (GDP) at the current market price is estimated to be at Rs 46, 93,602 crores at the advanced estimates while the factor cost is estimated to be 8.7 percent (Joseph and Varghese 7). Recently, the economy was projected to rise due to the increased inflow of investments and revival of 100 projects that were stalled in the past years. The Indian economy is expected to grow by more than 8 percent from 2016 to 2020 (Joseph and Varghese 8). This economical boost will also be attributed to the country’s engagement in a common market for agricultural commodities. Besides, there will be increased access to banking and technology in the face of urbanization and other reforms. A report released by the World Bank indicates a growth of above 7 percent in the 2015-2016 fiscal years (Joseph and Varghese 11).
The State of India’s Economic Progress
Srivastava reveals that India is one of the countries whose economies are growing fast (714). Currently, the country has taken the seventh position globally based on the Gross Domestic Product (GDP). The economy is expected to surpass its current growth rate (Srivastava 714). Various economists have also projected a significant growth that will boost India’s economy to about $150 trillion by the end of the next fiscal year. This projection of economic growth is attributed to various government efforts in the improvement of insurance, financing, real estate, and business sectors in the country. This situation will boost the economy of India by about 11.5% (Srivastava 714). Hotel businesses, transportation, and communication services have contributed to about 10.7 percent growth (Mani and Mishra 88).
Many investments and developments are notable due to the rate of economic growth in India that has resulted in increased mergers and acquisitions. Such activities led to the realization of US$ 38.1 billion in 2013 and US$ 28.2 billion in 2012, especially in sectors that deal with energy and natural resources (Ahluwalia 23). Others included transactions that resulted in about US$ 6.7 billion covering roughly 156 transactions. This registration hit a volume of 47 percent as compared to the 17 percent in the previous years (Gubbi 397). Ahluwalia reveals that the Consumer Price Index (CPI) inflation reduced by about 3.66 percent in August 2015. The confidence of consumers to enhance transactions has been high at the global economic level due to reduced inflation (Ahluwalia 34).
Besides, there was a notable 0.3% decrease in the GDP deficit accounts in the last quarter of the 2015 financial calendar. Ahluwalia also revealed that the foreign exchange reserves rose to about US$ 352 billion in the last quarter of the year. This value implied an increase of about US$ 631.5 million (Ahluwalia 35). This situation has significantly increased Foreign Direct Investment (FDI) thereby making India a hub of investment (Mani and Mishra 88).
State of Trade
Most foreign countries are investing in India due to various government initiatives to boost the manufacturing industries. This state of events has strengthened purchase power thereby boosting the demand for Indian products and services (Misuraca 407). For instance, the Digital India Initiative (DII) has led to improved digital infrastructure, service delivery, and literacy. This situation has also promoted the availability of employment opportunities for both Indian natives and foreigners (Mani and Mishra 88). Based on the above initiatives and government approvals in India, it can be concluded that the country will realize increased economic growth shortly.
Works Cited
Ahluwalia, Isher. India’s Economic Reforms and Development: Essays for Manmohan Singh. Oxford: Oxford University Press, 2012. Print.
Gubbi, Satyajit, Preet Aulakh, Sougata Ray, MB Sarkar and Raveendra Chittoor. “Do International Acquisitions by Emerging-Economy Firms create Shareholder Value & Quest; The Case of Indian Firms.” Journal of International Business Studies 41.3 (2010): 397-418. Print.
Joseph, Jisha and Titto Varghese. “Role of Financial Inclusion in the Development of Indian Economy.” Journal of Economics and Sustainable Development 5.11 (2014): 6-15. Print.
Mani, Saurabh and Ashish Dhar Mishra. “Impact of Inflation on the Performance of the Indian Economy-An Analysis.” Asia Pacific Journal of Management & Entrepreneurship Research 3.1 (2014): 88. Print.
Misuraca, Gianluca. “E-Government 2015: exploring m-government scenarios, between ICT-driven experiments and citizen-centric implications.” Technology Analysis & Strategic Management 21.3 (2009): 407-424. Print.
Srivastava, Rakesh. “Changing retail Scene in India.” International Journal of Retail & Distribution Management 36.9 (2008): 714-721. Print.