India Us Trade Relations

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International Business Transactions
India- United states of America

Introduction
India
India is a diverse economy being the tenth-largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). On a per capita income basis, India is ranked 140th by nominal GDP and 129th by GDP (PPP) in 2011, as per the data issued by IMF. The country is one of the G-20 major economies and a member of BRICS. The current population of India is 1.22 billion as per censusindia.gov.in with 65.2% of the population between 15 to 64 years of age and 30% of the total population living in urban areas. India is known as one of the youngest country with 34% of the population between 20 and 44 years of age. The Indian economy is positioned 56th in the world for the year 2011-12, in the Global competitive index released by the World Economic Forum. US

USA is a mixed economy with the world's largest national economy and the world's second largest economy. Its nominal GDP was estimated to be over $15 trillion in 2011, approximately a quarter of nominal GDP. Its GDP at PPP is the largest in the world, approximately a fifth of global GDP at PPP. The U.S. is one of the world's wealthiest nations, with the most developed infrastructure, and high productivity. The population of US is 31.4 million, as per the US Census Bureau, of which 66.5% of the population is between the ages of 15 to 64 years. More than 82% of the total population of the country lives in urban areas. The economy is positioned 5th in the world (for the year 2011-12) in the Global competitive index releases by the World economic forum Analyzing trade between India and USA will be interesting and insightful for a few reasons: * India is one of the fastest growing developing nations and USA is the power nation of the world * USA is India’s largest investment partner with a 13% share * India’s biggest export market is in the USA with 11% of the exports

Economy History
India
Indian economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Primarily being an agricultural economy with 17.2% of the total population engaged in agricultural activities, services are the major source of economic growth with 56.4% of the population and accounting for more than half of India's output, with only one-third of its labor force. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. After the global economic crisis, the Indian economy rebounded robustly in the year 2010 showing a 8% growth rate in real terms. India has capitalized on being a major exporter of information technology services and software workers. It has a medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy.

USA
USA is a market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. In the immediate postwar period, America's rapid growth favored the middle and lower classes. The poorest fifth of all households, in fact, fared best. Then, in the 1970s, amid two oil crises and awful inflation, things ground to a halt. The country backed off the postwar, center-left consensus and tried Reaganism instead. Technology and competition from abroad started coming in. Having the largest and most technologically powerful economy in the world, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US...
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