India From an Economic Standpoint What Will Essay
- Length: 5 pages
- Sources: 1
- Subject: Economics
- Type: Essay
- Paper: #47310999
Excerpt from Essay :
India from an economic standpoint. What will one discover? This country has changed much in the past decade. They are not the same as compared to the past. Management is aware of what needs done macro economically in order to make a living and help consumers and businesses to stay afloat. One will discuss an article in depth and the implications of it.
One will summarize the arguments that were used in The Economy; THE OUTLOOK: India Comes of Age, As Focus on Returns Lures Foreign Capital. These are as follows. India has failed in attempting to replicate China in regards to economic growth. However, this particular country does not have the type of advantages that are prominent in comparison to their counterpart. This is because everything is cheaper and that their policies are supportive through the government. In fact, many have feared that that India would become marginalized because of China have proved substantial as a means in which to provide an awakening for their private-sector economy. One can say that that those in India are focused on returns; whereas, China is based more on market-share (Sender, 2005).
By noting the fact that India may have a handicap, they are managing to prosper quite well. This makes their companies as efficient as possible with the little resources that are available to them. In essence, money is not wasted at all. Through their hard work over the years, they are able to profit from the $1 billion dollars that was invested. This makes it a good location in the world to make an impact with a large amount of money to help India out tremendously with their economy (Sender, 2005).
The explanation of the problem is imperative in order to understand the arguments that are presented by Sender (2005). India has remained quite isolated over the years. They have struggled to get ahead financially despite the fact that it is one of the poorest countries in the world. Not only that, but since the country is predominantly Hindu, they view animals as sacred and will not eat them. In fact, they worship them, which can hinder their economy from prospering because of it (Sender, 2005).
By analyzing the arguments presented and their implications, a person is able to grasp what is going on macro economically. For example, a textile maker "Welspun India Ltd." is one of many that are worth mentioning (Sender, 2005, para 5). In fact, this is a highly regulated industry in this country (Sender, 2005, para 5). They are expanding faster than ever before in history. Many years back, they were ranked 2nd without any "economies of scale" (Sender, 2005, para 5). Now they want to go international, which is significant, especially since they are in a 3rd world country. Currently, they had an investment that had at least 14% of the stake in the company. This is a breakthrough on how well India is doing in the Asia (Sender, 2005).
Since then, they now make "towels, bed sheets and bathrobes and is positioning itself not as low-cost maker of a commodity product but the high-end maker of fashion" (Sender, 2005, para 6). They help with a number of brands, such as Tommy Hilfiger. This company also wants to help other distressed textile industries in the United States as well as with other countries too. Their goal is to one day become a multinational enterprise (MNE) (Sender, 2005).
Another company is worth noting that is located in India. They are "Mahinda & Manindra Ltd., which started life as a tractor maker now is conglomerate making everything from cars to consumers loans" (Sender, 2005, para 7). Through their SUV that was invented, they made at least $165 million through the joint venture with Renault SA. Furthermore, they managed to purchase a tractor company in China. The organization is upgrading what is going on technologically within their market. This made their economies of scale or come in earlier than expected for how well the company is prospering (Sender, 2005).
Much change has occurred with the lack of infrastructure, especially with India's ports. A policy shift made this possible by allow private-sector companies to take part in it as well with various countries around the globe. In fact, at least ten years ago, India was not competitive, compared to what is going on currently. Many of the ports were only one-way, which was "to unload goods" (Sender, 2005, p. 8). In fact, not many roads did exist during that time. This did include that of railways and runways from that particular region. During that time, exporting had little significance due to how little that the country had available for resources (Sender, 2005). Now everything goes both ways with the conveyer belt, "and there are more exports leaving the port than imports arriving at it" (Sender, 2005, para 10).
One needs to discuss the implications from the analysis. India is growing both micro and macro economically in the world today. They are not current with technology and utilizing their port more so than what occurred in the past. The insinuations are phenomenal. In fact, the organizations that are present in India are now able to employ more workers, especially in the capital of India itself. People are now capable of becoming rich and to get out of poverty. However, those that are poor have opportunities to find work and to not live in crowded streets, but in the opportunity to actually have a home or small cottage. This makes it all worthwhile for the most populated place in the world.
Some more repercussions are worth mentioning. Consumers are able to actually get their needs met in a more proficient manner. This means that they are able to get their basic needs met, such as food, clothing and shelter, which Abraham Maslow described in his theory on needs. People are now able to survive without having to rely and family and friends through the entire process. In essence, their life is easier now because the companies are prospering in India more so than what was considered conceivable from the past to the present.
India's economy would continue to prosper as well. Since, the article did not discuss what is going in regards to statistics, one will rely on the CIA World Factbook (2011) to discuss this in more detail. The 1990's the economy was slow as demonstrated by Sender (2005) and became better by 2010. Since the economy predominantly consists of "agriculture, handicrafts, a wide range of modern industries, and a multitude of services"(CIA World Factbook, 2011, p. 5). The growth that occurred in 2010 was at least 8%, and the GDP was 15%. However, inflation did occur because of the monsoons in 2009. This made food and fuel go to at least 11% in the first six months. Over time, the issue did manage to decrease, but the bank had major increasese because of it (CIA World Factbook, 2011).
The government seeks to reduce their budget debt by at least 5.5% of their Gross Domestic Product (GDP) from 2010-2011. This is a decrease from the year previously that was 6.8%. One has to note that the long-term challenge is that of poverty and lack of infrrastructure and employment as well as education, which does include those who migrate from cities and towns acrosss the country (CIA World Factbook, 2011).
India is constantly growing from the over the years to the present. Anyone living in that region will expereince hardship because of the possiblity that they may remain poor or risk not getting a better life because of how poor the economy is in this particular country. Individuals who have their own business are prospering; however, those looking for work are going to struggle because this is an ongoing problem that is unavoidable in this part of the world. One would have to remain patient as their government tries to make everything better for residents who are permanent. Regardless, visitors would become amazed at the living conditions in India and may desire to help out others who are in need at that time during their stay.
Sender (2005) made note that Indian companies are helping other textile industries in the U.S. And around the globe. This will provide them with much reassurance and the ability to know that they too can get out of the impoverish conditions that are making them close to no longer owning their own business. Hopefully many of the Chief Executive Officers (CEO) are open to this idea, especially since the U.S. is trying to overcome the current recession and inflation that has occurred in the past few years. Regardless, joint ventures are taking place around the globe, which is helping businesses to survive during tough economic times. They are teaming up and relying on each other for support, which is keeping them afloat, which makes it all worthwhile for all of the companies involved.
India and China are competing now than they were a decade…