Development of India's Economy

India is one of the fastest growing retail markets in the world, with 1.2 billion people. Recognizing the important role, that, retail sector play in the national economy, the Central and State Governments have taken active steps to promote and foster their growth. The government policy is favorable to FDI in the retailing sector in phased manner so as to avoid opposition to such entry by domestic retailers. These measures have been particularly effective; but many of the problems/Controversy over Indian retail reforms still continues to afflict the retail sectors. Through in the 1990s, India introduced widespread free market reforms, including some related to retails, between 2000 to 2010, consumers in selected Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.

EBITDA, the critical measurement of cashflow profit, jumped 38% to £15.6m where as in year 2005, it was £11.3million. In addition, it has adjusted operating profit (before prior year goodwill write off) grew by 38% to £8.2million. Adjusted pre-tax profit (before prior year goodwill write off) rose by 44% to £7.3million from £5.1million in year 2005. Profit after tax climbed to £4.5m, representing a 28% increase. Basic earnings per share rose from 5.26p in 2005 to 6.60p in 2006, a 25% uplift.

It is noticed that Service sector has developed as one of the most important and the fastest-growing sector in the world economy in the past few decades, according to a research analysis on service sector in Indian economy. It also highlights reform measures that will enable the service sector to not only to grow at a faster pace but also to create quality employment and attract investment in the country. The study proves that service sector has grown at a higher rate in comparison to other sectors in the economy. Service sector’s growth rate is found to be higher than growth of overall GDP of India. The service sector is the 2nd largest employer where trade, hotels and restaurants and community, social and personal services are the significant generator of employment.

The country that this essay will use as a case study is India. India is interesting because the country has become FDI-intensive in recent years, following its economic liberalisation in the early 1990s. Prior to this, the India economy had strict controls and regulation on foreign capital and foreign ownership. Foreign Direct Investment (FDI) was particularly targeted in these reforms in order to benefit from the inflow of capital and other assets such as technology and knowledge. Since the liberalisation of the FDI policy, India has experienced a massive increase in FDI inflow (see figure 1).

Because of the rise in inflow of FDI in developing countries, GDP per capita increases which further aid in the economic growth of these underdeveloped nations. This can happen because international co-operation permits the inflow of FDI into countries which promote economic development. Secondly, FDI also facilitates the transfer of technology and business for economic development of nations. A study by Gigov (2016, p. 348) indicates that FDI plays a vital role in advancing the knowledge and technology, and the transfer of technology and business through FDI makes the countries closer that have a direct positive impact on the economic growth of

Exports between countries like the United States increased at a substantial rate, starting off at an annual rate of 6 percent before WWI, dramatically rising to 27 percent after the war began (Yan, 2014). China’s top ... ... middle of paper ... ...at restricted area (Xu and Dong, 2009). China, over the years, has come to good terms with producing and exporting lesser-skilled-intensive goods for foreign nations. China’s premium in skill rose at the beginning of the 20th century, flattening out the prices of exports around 1929 (Yan, 2014). It is shown in data that if there is no change in the overall final product of workers, and imports vs. export prices become neutral, that China’s labor skill level will fall in correlation.

The framework for such a growth that India is considered as the fastest growing economy is Democracy. However according to the author Virmani “there are no statistically significant breaks in GDP growth from 1950-51 to 1979-80 once the 1980-81 break is accounted for And thus the policy conclusions drawn on the basis of presumed slowdown in 60’s or 70’s are likely to be wrong.” Atul Kohli has not compared the 1980 break with the past growing rate of economy. Author has supported his argument for explaining the growth with various evidence. From 1980, Indian states shifted Indian political economy towards east Asian models of development partially. This partial shift in india towards pro business development strategy can be attributed towards the growth success in india as mentioned by the

(IBEF, 2014) India is an emerging market with high economic growth. It is one of the largest economies in the world in terms of nominal GDP. It also ranks 3rd when it comes to purchasing power parity. Upon liberalization, more favourable policies adopted by Indian government, India has become a preferable banking destination in the world. This report is commissioned to review the development of the banking sector in India.

J.B. Hunt used a total of $297 million in financing activities, which is a large increase from the $13 million used in 2014 (10-k, 22). With more cash at their disposal from operating activities during 2015, J.B. Hunt were able to use that cash on financing activities since they ended up using less cash in investing activities than the prior year. Therefore, they purchased more treasury stocks and they repaid more of their long-term debt than the amount of debt that they issued during the year (10-k, 22). Landstar’s use of cash on financing activities are similar to that of their competitor’s during 2015. Landstar used $254 million during 2015, an increase from the $112 million used during 2014 (LSTR 10-k, 39).

And a growing share of what countries produce is sold to foreigners as exports. Among rich or developed countries the share of international trade in total output (exports plus imports of goods relative to GDP) rose from 27 to 39 percent between 1987 and 1997. For developing countries it rose from 10 to 17 percent. (The source for many of these data is the World Bank's World Development Indicators 2000.) Foreign Direct Investment (FDI).