19 May 2010
The Indian economy is growing at a fast pace. It is officially the world’s second fastest growing economy. The Indian economy is likely to change a lot in the developing country.
Since the beginning of the economic reform in India in early 1990s, the country has gone through a lot of drastic changes. There have been lots of job creation in the country after the economic reforms. Young people are getting job opportunities like never before. New industries like information technology (IT) and business process outsourcing (BPO) have also offered more jobs for the educated youth. In fact now a days anyone with workable knowledge of computer and English speaking can find a job in India. All industries are growing at a fast pace. The auto industry has seen record growth in recent times. Even the manufacturing industry has posted a great rate of growth.
In coming years India is expected to go through some more drastic changes economy wise. The growth of the economy at double digit rate will make the country a developed nation in a couple of decades.
However, the path of economic progress is not easy. There are some problems in the country than can make the whole progress go for vein. Population explosion is one such problem. The fast growing population of the country ensures that majority of the work done for improving the life standard of the common people are going to the naught. The country has limited resources and it can sustain only a limited number of people living in the country. The basic need for supporting the additional population is urgent, which is bound to take more resources. The government of India is yet to come up with some policy to curb the growing population.
Another threat to the Indian economic growth story is terrorism. The threat of terror can derail the whole positive sentiments generated by the economic growth. As economic activities happen mostly in an environment of security, any act of terrorism in any major economic hub can be a major blue to foreign investment in the country, affecting the overall economic growth of the country. For example, bomb blasts in Mumbai had a negative impact on the economic scenario of the city.
Religious intolerance is growing in India. As some politicians can always play politics to garner votes in elections, they may divide people and cause communal riots. As seen in the case of Gujarat, some politicians are likely to exploit religious sentiments when pushed to the brink. Any major incident of religious riot can derail economic activities of a particular region. For example, after the communal violence in Gujarat, many industries of the state, especially of Ahmadabad, were affected.
Any other internal threat can also put a spanner in the economic growth story any time. As social unrest in the country is existing, it can be a bad omen for the overall economy. The rich-poor divide is also bad for the economic growth of the country. Keeping abreast with business news is good for keeping tabs on happenings in the economy.
K V Gautam writes on various topics. For reading business news