Factors of India Development Position to World Economy

2021-05-07 15:08:19
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Important factors that are frequently cited for greater Indian economic development include employment, investment rates, consumer price index, gross domestic product, government fiscal and monetary policy, the balance of payments, retail sales among others. These same factors also become the driving forces for overall globalization. The discussion below will give the primary indicators of the economy in India (Basu, 2004).

Investment rates

The central back which sets the interest rates plays a significant role in the Indians economy which shows a move in the prices of currencies in the foreign market and also indicates the flow of investment (Nafziger, 2012). When the Indian central bank changes the interest rates, they cause the forex market to experience volatility and movement.

Gross domestic product

GDP which is the measure of the country's economy also plays a role in the Indian economy. It indicates the total market value which is the total goods and services produced in Indian during a given year. The preliminary report and advance report issued monthly are the main trade indicators which case a considerable volatility.

Consumer price index

The consumer price index indicates the level of retail process for basic consumer basket in India and it is a significant indicator of the economy. Inflation comes in regarding the purchasing power of the currency which affects its standing in the international market. For instance, if the consumer price index increases due to development it attracts basic interest rates which lead to an increase in the attractiveness of currency (Choi, Ward, & Organisation for Economic Co-operation and Development. 2003)

Employment indicators

The Indian health in the economy and business cycle is indicated by the employment rate. To know the flow of the economy, the jobs created yearly, the percentage of people in the job market and the unemployment give a good economic indicator. This enables to monitor the speed of ages growth (Nafziger, 2012).

Government fiscal and monetary policy

The Indian government is always at its best to stabilize its economy through the manipulation of the fiscal and monetary policy. Fiscal relates to the expenditures and taxes while monetary is relate to the supply of credit, money, financial markets and other financial assets.

In conclusion, employment indicators, investment rates, consumer price index, gross domestic product and government fiscal and monetary policy are some of the major Indian economic factors.

References

Basu, K. (2004). India's emerging economy: Performance and prospects in the 1990s and

beyond. Cambridge, Mass: MIT Press.

Choi, B. H., Ward, D., & Organisation for Economic Co-operation and Development.

(2003). Main economic indicators: Comparative methodological analysis : wage related statistics. Paris: Organisation for Economic Co-operation and Development.

Nafziger, E. W. (2012). Economic development. Cambridge: Cambridge University Press.

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