India and the global economy

If we could rise to the challenges and stay on the path of sound economic policies and fiscal prudence, the repositioning of India in the global order would be faster than what has been predicted.
P. Chidambaram

India as of now is emerging as a strong economy with GDP growth rate of more than 8%.
India is becoming the favorite destination for FDI investment. The dependence on agriculture is decreasing year on year basis. Now the share of agriculture in GDP has decreased to 19.9% in the year 2005-06.

The manufacturing sector is on a boom. So our growth is not solely dependent on the service sector. Earlier our economy was dependent on the domestic consumption. Now a lot of investment is taking place and we are exporting goods to other countries.

Recent statistics shows that India’s share of global GDP in Purchasing Power Parity terms was 4th highest with 5.9% in 2005. In the 11th five year plan the targeted GDP growth is 9%. Now we are looking for achieving more as our economy has become strong to grab this opportunity.

Our economy has become strong to resist the effects of shocks. The share market fell by around 30 percent in May. Now with in five months it has regained the position of May and it is still doing well. Indian companies are in expansion phase. They are expanding themselves to the developed countries. They are competing with the world class companies in US and European market.

These factors of development have to be sustained in order to make India a developed country. Because we have a dark side to our development as well. Though our IT sector is one of the best in the world the literacy rate is 72 percent which is not considered good. We have to be cent percent literate. India has the highest number of population below poverty line. The disease like AIDS is increasing in our country. We have to control it in order to make our people healthy.

Source: Economic Times