Answer to Question #50195 in Macroeconomics for Neha

Question

Examine the progress of Indian economy towards globalisation in the post reform years (after 1991). comment on the slow pace of progress on globalisation and identify the major reasons.

Answer 1

Since the mid-1980s, India has slowly opened up its markets through economic liberalization. After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy.
In the late 2000s, India's growth reached 7.5%, which will double the average income in a decade. Analysts say that if India pushed more fundamental market reforms, it could sustain the rate and even reach the government's 2011 target of 10%. India is the tenth largest economy in the world and the 3rd largest by purchasing power parity adjusted exchange rates (PPP). On per capita basis, it ranks 140th in the world or 129th by PPP.
The economic growth has been driven by the expansion of services that have been growing consistently faster than other sectors. It is argued that the pattern of Indian development has been a specific one and that the country may be able to skip the intermediate industrialization - led phase in the transformation of its economic structure. Serious concerns have been raised about the jobless nature of the economic growth.