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CAN INDIA TAKE OVER US AND CHINA AS STRONGEST ECONOMY ?

U. S and China always dominate the world when coming to strongest economy rate!
India is starting to change this by the incredible economic growth in the past decade with limitless potential over the future.

INTRODUCTION:

Since 1871 the U.S held the position of the largest economy in the world.
In 2018 America crossed new threshold with GDP of 20.5 trillion us dollars that is 1,47,83,57,50,00,00,000 rupees !
China, on the other hand, was playing well in economic growth standing in second place from 2010 and continuing its legacy!
In 2018 china’s GDP is 13.4 trillion that is 96,67,63,10,00,00,000 rupees !

1. U. S
2. China
3. Japan
4. Germany
5. United Kingdom
6. France
7. India

ECONOMIC GROWTH RATES:

After the independence India created a closed economy system without relying on imports from foreign investments started a new era in economic rate increase:

1. Banking
2. telecommunications
3. foreign investments

But corruption and poverty in India have a serious effect on the economic growth rate!

In 1991 the collapse of the soviet union which is a primary trade partner of India and Gulf war Raised oil praises which cut off funds from Indians who had been sending back the money while working in the middle east!

This caused a brisk in the financial crisis, the country was in serious danger on defaulting its loans.
India bailed out by International monetary fund with 1.8 billion us dollars that is 1,29,86,29,80,000 rupees loan!

These consequences caused to implement major economic reforms leading to the liberation of India’s economy…

Markets opened up to foreign competition and restrictions on foreign investment were eliminated.
This opened opportunities for Indian entrepreneurs who get funding from investors around the world!

Regulation and restrictions such as
1. tariffs [ tax paid on imports and exports ] reduced!
2. monopolies [ person supplying particular goods to only a particular commodity ] eliminated!

By 2003 India’s free economy market increased and increase in the GDP is due to the development and embracing of the IT sector in 2007 revenues from the IT sector is 23.5 billion us dollars [ 17,03,04,50,00,000 rupees].
In 2018 became 167 billion us dollars [ 1,21,02,49,00,00,000 rupees ].
TECHNOLOGY BASED BUSINESS also plays an important role in India’s economic growth!

Reasons for the largest economy:

Population :

With 1.3 billion population and a more middle-aged working people India getting its sheer growth!

Decrease in Poverty:

Between 2005 and 2016 271 million people moved out of poverty this shows a big positive sign of economic growth!

271million

Increased Urbanization:

50% of the agricultural reforms are coming to urban areas.
By 2050 stated that 830 million people live in cities.
This helps economic growth but should be balanced with agriculture too that is produced from rural!

830 millions

why not India top the list?

Job Growth :

The jobs in India are not sufficient with their growth in the economy!
45 years old people were still unemployed in India there is the number of unskilled workers than skilled!
No enough wages were paid to their work.

81% of the workforce engaged in informal work like

  • Household work
  • Street vendors
  • Rikshaw drivers

gdp

These people make half the GDP but it’s based on cash and informal economy with no taxes paid.

India should balance these

  • Farm to factory
  • Rural to urban
  • Informal to formal

Conclusion:

Economists stated that by 2032 china will conquer the 1st place in Economic strength
if proper measures were taken India would top the list by 2050.

The economy is dynamic, factors such as population, world events, politics, industry trends would play a crucial role.

We suggest you a book on this topic ” path ahead ” by Amitabh Kant.

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