“Salient Features of Indian Economy
Promotion of Foreign Investment and Business”
There have been fundamental and irreversible changes in the economy, government policies, outlook of business and industry, and in the mindset of the Indians in general. 1.
From a shortage economy of food and foreign exchange, India has now become a surplus one. 2.
From an agro based economy it has emerged as a service oriented one. 3.
From the low-growth of the past, the economy has become a high-growth one in the long-term. 4.
After having been an aid recipient, India has now joined the aid givers club. India has become a net creditor to IMF, since July 2003. 5.
Although India was late and slow in modernization of industry in general in the past, it is now a front-runner in the emerging Knowledge based New Economy. 6.
The Government is pursuing reforms and liberalization not out of compulsion but out of conviction and consensus. 7.
Indian companies are no longer afraid of Multinational Companies. They are becoming competitive and some of them are going global. 8.
Fatalism and contentment of the Indian mindset have given way to optimism and ambition. Introspective and defensive approach has been replaced by outward-looking and confident attitude. 9.
The Indian culture, which looked down upon wealth as a sin and believed in simple living and high thinking, has started recognizing prosperity and success as acceptable and necessary goals. 10.
Graduates no longer queue up for safe government jobs. They prefer and enjoy the challenges and risks of becoming entrepreneurs and global players. Stable democracy and institutions
Largest democracy with stable, mature, vibrant and exemplary democratic governance and institutions. 12.
Strong and transparent legal and accounting system.
Primacy of rule of law and independent judiciary.
Numerous watchful and proactive NGOs.
Free, vocal, alert and quality media. 5600 dailies, 15000 weeklies and 20000 periodicals in 21 languages with a combined circulation of 142 million. 16.
Legal protection for intellectual property rights.
Large and growing market of 1 billion people of which 300 million are middle class consumers. 18.
India offers a vibrant market of youth and vigor with 54% of population below 25 years of age. These young people work harder, earn more, spend more and demand more from the market, making India a dynamic and aspirational society. 19.
The domestic demand is expected to double over the ten-year period from 1998 to 2007. The number of households with "high income" is expected to increase by 60% in the next four years to 44 million households. 20.
The number of shopping malls is expected to increase from 25 in 2003 to 220 by 2006. 21.
Every month, there is an addition of more than 1.5 million cell phone subscribers. By December 2005, the total number is expected to reach 100 million from 31 million in January 2004. 22.
PC sales in 2003-04 are expected to reach 3 million units from 2.3 million in the previous year. 23.
Sales of cars in 2003-2004 crossed the one million mark. Economy
The fundamentals of the Indian economy have become strong and stable. The macro-economic indicators are at present the best in the history of independent India with high growth, foreign exchange reserves, and foreign investment and robust increase in exports and low inflation and interest rates. 2.
India is the second fastest growing economy of the world at present. The GDP growth in the first nine months of 2003-2004 has averaged 8.1%. The growth rate in the third quarter September - December 2003 reached 10.4% making India the fastest growing major market in the world in that period. India has recorded one of the highest growth rates in the 1990s. The target of the 10th Five Year Plan (2002-07) is 8%. India’s services sector growth of 7.9% over the period 1990-2001 is the second highest in the world. 3.
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