Indian Economy

Indian Economy

View Full Essay Let us understand this phrase and what it means: There are several significant parameters or factors, which are generally taken into account collectively while ascertaining or assessing the strength of any economy. Let us examine and understand their impact:

1. The political structure: India's political structure is 'liberal' democratic. {Here liberalism pertains to individual enterprise and freedom against the Marxist premium on state action and patronage} All major political parties are committed to honoring the written constitution in letter and in spirit. All political ‘shift-of- power’ is peaceful. There are no significant and perpetual political or organized threats to our political structure. Dissent, protestations and disagreements are constitutional and legal. In sum, our political structure is deemed stable and conducive to long-term investments.

2. The economic model: Basic principles of India's economic model are derived from our political structure. Though constitutionally socialistic, the private sector is increasingly being assured of full political support and since the 90s, India has adopted an aggressive policy of openness and globalization. Our country is on a fast track to globalizing and privatizing the economy. Barring very few commodities of strategic and rural importance and with certain aspects of rural market closed to global commerce, the entire country is open to world trade.

The most important point is: A quick look at our economic bye laws, provisions, bills and announcements reveals that the Indian state is committed to liberalization and enabling 'fair' and equal opportunity to citizens of the world. Policies and measures since 1990s (and accelerated in 2004) have testified to government intentions.
There are some immediate parameters, which are crucial to the soundness of our economy:

3. Nature of our economy: Is our economy import led or do exports form a major part of our economy? What does India’s balance of...