One of Asia’s powerhouse economies, India is continuing its current success for new activities that defines its move to be a world leader. While it may seem that others foresee the country as a third world status, it is the tenth largest economy in the entire global arena. Principles on the free market, introduced in 1991, helped boosted the country to its status as a leader, and though there are still problems that society has to face, it is certainly one nation on the road to be an economic might. Here are the 10 reasons to the growth the country’s economy.
10. Domestic consumption
Typically, a growth of the country can come from within, and India is one that speaks about domestic consumption is increasing and helping. Around 6.3 percent of the consumption factors have been used by the country to boost its current economic uses.
9. Mining
A vital element to the overall economy, the sector is essential producing around 79 different minerals that are exported all over the world. In addition, the minerals are also used in the different industries all across the country. Among the minerals most popular for export and mined by the industry include the iron ore, manganese and limestone.
8. Investment boost
Investments have been trigged by the domestic consumption issues, and this has led people to give focus on the real property investments, which is noted to have an average increase of 17 percent per year for the last five years.
7. Employment rates increase
While the industries in the country are growing, so does the demand for the professionals that are present in every aspect. Thus, the more people are employed by the different industries, the more they can be able to contribute to the overall growth of the economy, which also affects the domestic consumption issues.
6. Industrial and textile industries
Factory manufacturing industries of India is considered as the 14th top producer in the world, and this sector accounts for around 17 percent of the entire employment sectors of the country. The textile industry, itself, employs around 20 million people.
5. Increase in Outsourcing services
India is considered as one of the leaders in the outsourcing services market, and it is the driving force for hiring of new college graduates that wants to get a good career. Employment of English speaking workers is rising as the entry of foreign corporate entities into the market is also increasing. Generally, what the industry is offering is to increase the employment rate that the country seems to be suffering from quite often. In fact, at the latest count, the sector has helped employed around 3 million jobs in both direct and indirect opportunities.
4. Farming and agriculture
Among the industries vital to the economic growth, it is the farming and agriculture sector that seems to make an impact to the locality. India is considered as the second largest in the global market when it comes to the farm output. The sectors of the forestry and logging together with the fishing industries have been accounted at one time to 18.6 percent of the total economic GDP. Plus, this industry employs around 60 percent of the total workforce of the country. Among the most popular produce of the country includes milk, cashew nuts and black pepper.
3. Banks and financial institutions
In 1969, 14 banks were nationalized by Indira Gandhi, and this led to the requirement that 40 percent of the total net credit of the banks must be used for other industries and other sectors. Overall, this helped the country overcome certain budget issues for every sector. In the recent decades after that, a noticeable improvement in branch delivery decreased for each and an increase in deposits overall was garnered by the institutions.
2. Global Trade
Previously isolated from the world markets, it opened its doors to the global trading floor in 1991, and it lead to the increase in the international trade sector. Among the top trading partners of the country includes the United States, the European Union and the UAE.
1. Foreign direct investment
When it comes to PPP or the purchasing power parity, it is the fourth largest economy. Thus, it has made the country to be a favorite foreign direct investment destination for industries like telecommunications, auto components, pharmaceuticals and information technology companies. With the reduction of licensing requirements and the restrictions on the expansion, more FDI companies are moving towards the country.