India s Economic Growth Rate And Economic Development

India’s political system allows the economic shift from a protectionist stand point to an open market source. India has recorded a growth rate of 7.4%, an increase from its previous value of 7.0%. The economic performance can be augmented through its policies, in specific monetary policy. Interest rates were cut to 6.75%. This reduction meant that borrowing and lending money was cheaper, having a positive effect on the disposable income of individuals. India’s Real GDP is 7.4%, considerably higher than the rest of the world (2.8% and 2.9%). This comparison of growth depicts India’s accelerated economic growth rate and economic development. India’s primary sector has helped boost the economy. The employment level, due to the Five Year plan, has increased in the sectors of forestry, fishing and logging. The uncertainty of climatic conditions, has forced a strong shift into the secondary and tertiary sectors. The manufacturing output climbed to 9.3% in the previous quarter while finance and insurance services growth has had an increase to 9.7%. The growth of the financial sector has been a direct result of the reforms in place that boomed the stock market, assisting large firms finance their expansions. To understand economic development, we have to look at it from more than the viewpoint of capital accumulation. The idea of Total Factor Productivity (TFP) plays a major role. TFP is the increase in the overall output without the increase in the level of input, allowing forShow MoreRelatedEssay on India China Economic Growth893 Words   |  4 PagesCATALYSTS TO GROWTH IN CHINA AND INDIA. 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