Development of India's Economy

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India is one of the largest and fastest growing economies in the world. In the past, India was not involved into the world markets because it wanted to protect its economy and autonomy. But, in the last few years, there has been an increase in India’s economic power. Like other developing countries, India is using trade as a rise in development. Its services and manufacturing areas have grown rapidly. Foreign trade focuses on export and import taxes and quantitative restrictions. In 2012, India imported $500.3 billion and exported $309.1 billion goods (Factbook). The goods that it imports are machinery, fertilizer, iron and steel, food grains and crude oil. It exports textile goods, jewelry, engineering goods, petroleum products and agricultural products. There have been changes in the India’s trade patters. It didn’t export much in the last 10-15 years because the government neglected trade policy. During that period imports grew due to industrialization, which consisted of raw materials and customers goods. Since liberalization, there has been an increase in India’s foreign trade. India’s rate of economic growth grew to about 6 percent in 2001 ( ). After trade liberalization, India has experienced a positive growth. The liberalization of trade policy led to a contributing factor to India’s economic growth. The trade in goods and services increased from 16 percent in 2001 to 47 percent in 2010 ( ). India exports about 1.44 percent and imports 2.12 percent for merchandise trade and services globally ( OECD). It major trade partners are U.S., China, European Union and United Arab Emirates. In 2010, it exports increased to $14 billion and imports increased to $20 billion and for the same year, it trade deficit dropped signific... ... middle of paper ... ...I inflows. India received projects from other nations based on Greenfield, acquisitions and mergers projects. An example of a city that received the largest Greenfield projects in India was Mumbai ( ). The growth of U.S. investments in India has increased, but the country still remains a small destination for foreign U.S. investors. So, we know that U.S. views India as a growing nation compared to U.S. foreign investors so, the U.S. is considered a significant source of FDI in India. However, there are things that might increase the importance of India for U.S. firms looking for foreign investment opportunities. The multinationals firms in U.S. facing increased labor costs can invest in India due to its large, well-educated and English speaking workforce. India and U.S. share about their economic and trade issues and both are members of WTO, IMF and World Bank.
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