Economic Development of India

1. Economic Background of India

By Mr. Jean De Dieu HABAKWIZERA

Location and Description(1)

India, located south Asia. New Delhi as CapitalBordered Countries: South: Indian OceanNorth-East : China, Nepal and BhutanWest: PakistanEast: Bangladesh and Myanmar( Burma)Tot.Area:3,287,263 sq kmPop:1, 210,193,422 (2011 census)

Location and description(2). 7th Largest in the word. Caste lead to large economic gap btn poor and Rich people.. 18 languages are spoken. Indian economic sectors include: telecommunication, IT, Auto components, Pharmaceuticals, Steel, Machine tools and Banking and Insurance.. Agriculture and Livestock products key drivers of Economic development.

Location and Description(3). It has complex and diverse culture: Rural, Traditional and Agrarian Population.. Experiencing of industrial power leads to Rapid urban growth rural-urban migration.. This country emerges as one fastest growing economies in the world

A. Before colonialismB. During colonialismC. After independence

History of economic development of India

A. Before Colonialism.Indian economic development began in Indus valley civilization years 3500 to 1800 BC.Based on trade that facilitated advanced transport Maritime transport was very important to sell gold, Copper and Jewelry in Mesopotamia.Military security and political unity was allowed economic system under Greek Seleucid and Ptolemaic empire.. For the next 1500 years, India produced its classical civilization which generated a huge amount of wealth. On that time, India estimated to have largest economy ancient and medieval world’s one third and one fourth wealth.

B. During colonization(1)

. British Rule, Before British rule, India transform its products in finished goods that sold in internal market British East India company had political power expanded in India 1757 onwards generated by provinces under its rule purchasing Indian raw materials, spices and good to be exported and Indian citizens purchase manufactured products from British.

B. During Colonization(2) British imperial empire began to grow India in the middle of 18 century. Colonial government used land revenue for waging wars in India and Europe leaving little for Indian development 80 years under colonial rule, India was exporter of raw materials and importer of manufactured goods During that time some Indians suffered by famine and illiteracy

C. After Independence(1) 1947-1979India after independence in 1947, started its economy to rebuild under five centralized years plan. This plan came into implementation in 1952 and under agrarian economy, invested in dams construction, Irrigation and laying infrastructuresCountry did not develop rapidily because of cold war, defense expenditure and inadequate infrastructure and rise in population

C. After independence(2) 1980-1990 High rate of Investment was a major factor in improved economic growth Balance payment crisis in 1990, government had taken measures of economic liberalization in order to receive new loans. this was took in place by decision of government to economic reform in June 1991

Economic sectors of India(1)

Primary sector, includes Agriculture, Forestry, Fishing and Mining• Indian GDP on agriculture was about 16.1% and it was in fastest and largest growing markets on food and Agriculture in the World Secondary Sector, transformation of raw material into manufactured goods. Includes industries of textile, Chemical, Engineering and Machinery

Vision and Achievements of India The rising of income and Saving levels, investment opportunities and younger population will ensure the growth of decades to come India’s share in the world output is projected to jump from 5% as today to 20.8% in 2040.

2. Forms of path dependence, continual development influences with developed country in India

A. Forms of Path dependence in India

First degree path dependence, this sensitivity do might not harm. But this path happens to be optimal. Secondary degree of Path dependence, sensitive dependence leads to outcomes that are regrettable and costly to change. Inefficient in any meaningful sense, given assumed limitations on knowledge. Thirdly degree p.d, sensitive dependence leads to outcomes that is inefficient but in this case, the outcome is also Remediable.

B. Conditions give rise to path dependence in India Durability of capita equipmentTechnical Interrelatedness Increasing Returns Efficient in forestry regime in India

3.Globalization in India(1)Globalization, leads to expand movement of ideas and exchange of commodities over vast distance. India has distinct of being largest economy in the beginning of Christian era. The concept of globalization is hardly new to India until its liberalizations. it was isolated to international market to protect its economy and to achieve self-Reliance.

3.1. Positive impact of Globalization in India

New opportunities for Indian companies providing services, particularly in field of IT. Services such as data entry, Accounting, and administrative tasks are now being done cheaply in India and exported from developed countries. This provides thousand jobs Competition among producers resulting from globalization is greater advantage to the consumers and enjoying improved quality and lower prices for several products

3.2. Negative impacts of Globalization in India

Liberalization of foreign trade policies allowed the import of electronic goods at a very cheap cost. uncertain employment and of rising competition All native Hindus were dismissed as heathens or pagans Workers are denied their fair share of benefits as manufactures are always on the lookout for cheaper labor.

4. The status of Natural resources/Environment in India4.1. Types of Natural resources in India

• Different types of natural resources such as Fertile Soil, Forests, Minerals and Water.

• Mineral resources such as Bauxite, Chromites, Iron, coal, limestone, Mineral oil….

4.2. Environment of India• The 3,287,590 sq km of the country are characterized by upland plain in the south, flat to rolling plain along Ganges deserts in the west and Himalaya in the North.• Climate varies from temperate in the North to tropical Monsoons in the South• Current Environmental issues are Deforestation, Soil Erosion, Overgrazing and Air pollution.

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