Comparing assessing the impact
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Comparing assessing the impact of political or economic globalization between two countries
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Figure 2
Structural Change in the Indian Economy Per cent of GDP
|Structural change in the Indian economy Per cent of GDP |
|Period |Investment rate |Primary |Secondary |Tertiary |
|(year starting April) | | | | |
|1950-52 |15.5 |59 |13.4 |27.6 |
|1960-62 |19.4 |53.1 |17.3 |29.6 |
|1970-72 |23.8 |46.6 |20.4 |33.0 |
|1980-82 |22.0 |41.3 |21.8 |36.9 |
|1990-92 |26.0 |34.4 |24 |41.6 |
|2000-02 |26.2 |26.1 |24.7 |49.2 |
| | | | | |
Source: Chandrasekhar and Ghosh
Chandrasekhar and Ghosh state that the changes the Indian economy has experienced in terms of policy changes are those as follows: (1) very substantial reduction in direct state control in terms of administered prices and regulation of economic activity; (2) privatization of state assets, often in controversial circumstances; (3) rationalization and reduction of direct and indirect tax rates, which became associated with declining tax-GDP ratios; (4) attempts to reduce fiscal deficits which usually involved cutting back on public productive investment as well as certain types of social expenditure, reducing subsidies to farmers and increasing user charges for public services and utilities; (5) trade liberalization, involving shifts from quantitative restrictions to tariffs and typically sharp reductions
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