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Export of Goods would also increase if the Rupee were to weaken and address the balance of trade. The government is strongly advised to allow mining and large manufacturing projects to begin and allow the export of these commodities to economies like China. Comparative cost of labour and production would give India a very competitive selling price in the global market and shift employment from agriculture and the unemployed into the manufacturing industry.

Debt can also create a lower credit rating and the ability to pay back loans, defaulting on a loan can have widespread negative implications to sustaining growth in the economy. Inflation Inflation is the reduction in the value of money and is High Inflation is a concern because it breads uncertainty in the economy for business, consumers and other investors.

Why would this help stabilise inflation and reduce unemployment? The difficulty in policy decision remains the valuation of the Rupee and its impact on a number of variables. High rupee value impacts exports and is approximately Continuing to increase interest rates will have two impacts; direct foreign investment will be more attractive. Such things as new iron ore and petroleum mining ventures would become possible, however if the Rupee value is too high the export of this and other exportable goods becomes less attractive.

This is explained as money being the scale by which an economy can be measured, write an essay on indian economy and labour, if the metric of the measurement is uncertain different ideas are formed about how and where money is spent or even if it is spent at all.

The Indian Economy Essay Example


Write an essay on indian economy and labour - Catch your character as you read your thesis if you can write quite a number of strikingillustrations gathered up of the study dates back to the present increase of the. Applying research techniques ad hominem latin for their faculty. Essay on the Economy of India! The Indian economy is diverse and embraces a huge area including agriculture, mining, textile industry, manufacturer and a vast area of other services. There is an enormous shift from what the economy used to be in the distant past. Indian economy . We will write a custom essay on The Indian Economy specifically for you Figure Economic Sectors Labour/GDP (The World Bank ) The policy consideration for Government should be to increase the efficiency of the agriculture sector and move employment into the Industry and Services sector in the long run, including a focus on self.

write an essay on indian economy and labour

As seen in Figure 3. Brent Crude Oil Index Oil is a highly utilised commodity for India and its price can directly affect aggregate supply figure 3. In January oil prices began to climb however as the GFC began to take hold, global demand for reduced and prices fell.

 

In order for the government investment not to compound Aggregate Demand and multiply into further inflation, taxation of the middle and higher income tax brackets is an option. Already highlighted is the disparity between the size of each sector and the share of its GDP, these expenditures would therefore shift demand from the higher earning service sector into agriculture and industry, write an essay on indian economy and labour, write an essay on indian economy and labour a positive knock on effect of an increase in employment in these areas.

Essay: Indian Economy and Economic Reforms

write an essay on indian economy and labour

 

Policy Direction Policy recommendations for the Government of India have one overall aim, to maintain strong growth. Three major economic conditions for this focus on, reduction of Government Debt, stability of inflation and addressing high unemployment. The long term effect of increase to interest rates is to reduce aggregate demand. Figure 3. While India is experiencing increased AD, interest rates are aligned to but not an overall effect of price increases and in the long run reduce the sustained high growth levels.

 

Misistry of Statistics and Progamme Implementation. National Accounts Statistics. How to cite this page Choose cite format:.

As India was maintaining strong local Aggregate Demand however inflation was still high. During a poor Food harvest in as a result of a poor monsoon season The Economic Times compounded by international food supply contractions and price rises in the manufacturing sector BBC supply side shocks and marginal rise in oil prices can attribute to high inflationary levels.


 

Conclusion The economy of India is very strong in the current global climate of uncertainty and the challenge for the Government is to maintain that level of growth. Managing economic uncertainties that can cause the economy to fail in its aims are extremely important. Understanding the supply side causes of inflation and the possible negative effect of monetary policy to combat it should be realised.

To some degree the economy may be experiencing stagflation as it has a much higher potential GDP threshold. In conclusion, there are other factors such as corruption and economic management that if resolved could drastically reduce debt and disparity between all sectors of society. References 2point6billion.

The effects of the supply shocks would be noted in the shift from AS1 to AS2 with prices rising in the short term. Monetary policy, in the short run would assist the reduction of AD to curve inflation however to reach LRAS2, other policies must be considered. Investment in agriculture, manufacturing and infrastructure will most likely form the basis of the Twelfth Five-Year plan 2point6billion. Agriculture can increase and sustain output by advancements in farming practise and write an essay on indian economy and labour which is also true of the manufacturing sector.

Here we are providing essay on Indian Economy of varying lengths to help you with the topic in your exam. You can select any Indian Economy essay as per your need and interest during your school’s essay writing competition, debate competition or group discussion. Ideally, it also contains free inter-country movement of labor. In context to India, this implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India, removing constraints and obstacles to the entry of MNCs in India, allowing Indian. We will write a custom essay on The Indian Economy specifically for you Figure Economic Sectors Labour/GDP (The World Bank ) The policy consideration for Government should be to increase the efficiency of the agriculture sector and move employment into the Industry and Services sector in the long run, including a focus on self.

High levels of inflation and unemployment do not align to the Phillps principle of inflation McTaggart, Findlay, and Parkin however at present there may be a need to absorb these pressures in the short term.

 

The country has also moved along a steady path of economic reform and liberalisation since including privatisation and foreign investment. The next five year plan needs to consider economic factors below write an essay on indian economy and labour may restrict the high levels of growth. There is also an emergence of a two-speed economy emanating between the service sectors employed middle and high income earners with those in agriculture and manufacturing FitzGerald Figure 2. The government has to consider several factors that are a risk to this aim such as a large budget deficit, high inflation and unemployment, write an essay on indian economy and labour, all shown in figure 2.

Unemployment in India. India wholesale inflation rate rises more than expected. FitzGerald, B. Two-speed economy killing industry, warns steel maker. Hubbard, G. Garnett, P. Lewis, and A. Essentials of economics. McTaggart, write an essay on indian economy and labour, D. Findlay, and M.

Infrastructure is also a key investment consideration to reduce costs of production to all sectors of the economy and sustain ever increasing energy needs.

It also affects the distribution of money across society which is an economic concern in India, high levels of inflation are notable in Food, Manufacturing Prices and Fuel BBC Indirectly the economy is burdened with the costs such as health and crime however more direct issues include social welfare, loss of production and therefore taxable income. India could continue growth and manage sustainable inflation in the long term to reach the potential GDP levels.

Percentage Government Debt This is an important consideration as it affects the ability of government to embark on public spending necessary to address improvements in infrastructure, education and manufacturing which can help maintain the high growth levels in the long run. High debt and exchange rates can also affect foreign investment which is rich in the services sector, attributing Wage prices would be kept at a competitive level compared with other outsourcing countries and overall GDP levels.