Indian economy proving to be a boon
When economic slowdown the world over was on its peak, companies were getting shut; people were getting laid off all over India. The Indian economies were one of those economies, which got affected the minimum by it.
INTERNATIONAL MONETARY Fund (IMF) said that India and China are among the countries who are recovering fastest from the slowdown. Prime Minister Manmohan Singh recently said in his speech that the Indian economy is finally recovering from the slowdown.Figures of the first quarter are also suggesting the same. Gross Domestic Product (GDP) of the first quarter of fiscal year 2009-10 was 6.1. In the last fiscal year this figure was worst for the quarter three and four. But going with the growth rate of Q1 of this year, it seems that the Indian economy will manage to achieve the forecasted growth rate of 6.5 per cent on an average.
When economic slowdown the world over was on its peak, companies were getting shut; people were getting laid off all over India. The Indian economies were one of those economies which got minimum of affected by it. This is why it’s recovering sooner than the other economies. Our economy, even after the economic reforms of 90s did not react as badly to the economic slowdown as the other countries did. Indian economy is a mixture of private and public enterprise and government still has the power to control and interfere in case of emergency unlike countries like the United States of America. Also, some of the sectors such as insurance, defense, pharmacy etc are still with government whereas foreign direct investment (FDI) is not allowed and in sectors also, where FDI is allowed, management and decision power still lies in hands of Indian national. In coming out of the economic slowdown, India’s vast population also proved a boon as it kept on creating the need of goods and services within itself and not being dependent solely on export to Japan.
Being a socialist and capitalist economy, it has been able to strike a balance between earning profit and serving the interest of people. What happens within our country still affects the numbers here more than what crashes outside because of its semi-bounded nature. India’s more than half of the population is still dependent on agriculture for there living. It is also one of the reasons as to why we were less affected by what happened at the Wall Street.
In a cycle, everybody got bruises of the global recession but the truth is that it was the influential class which was hit harder. And at the same time, the influential class consists of a few per cent of our huge population. Whereas in the US, the disparity is not as high as in India and therefore, everybody in India had to face the phase of recession almost equally.
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