India’s Role in a Changing Global Economy [ Current Affairs ]


India has become the fastest-growing country even in the global economy because of India got benefitted from a confluence of factor such as reduced international price of energy and elasticity in domestic private consumption

  • So, India has to continue its constant growth leadership, It should carefully study and measure the global outlook and international policy agenda effects.

Concerns for:

  • Global growth has been underperforming in recent years.
  • The cyclical nature of industrial country growth has been deeper than expected.
  • This underperformance is increasingly structural in nature.
  • It will affect developing markets.

Factors that affect Indian Economy:

  • Global structural weaknesses looked at carefully. They arise from supply-side factors and demand constraints that affecting global trade, a critical growth engine in recent periods. The following factors are affected Indian economy.
Image shows the factors that affect Indian Economy

Image shows the factors that affect Indian Economy

Showing image of factors that affect Indian Economy

  • Low productivity: Productivity has clearly been falling in industrialised countries and in developing markets, leading to supply scarcities.
  • Decreasing investments and innovations: There is rising unanimity that effects led to falling investment returns, possibly from slowing innovation that has reduced investment.
  • Poor demand and rising inequalities: The imbalances reducing growth also reflect an overall demand shortage.

What India should do?

  • The above mentioned factors require concerted domestic policy reforms. India also needs to be fully involved in the developing G20-led international policy agenda for being developed to deal with global structural weaknesses and increase public investment where fiscal space is available.
  • Through that:
Image related to Indian Economy

Image related to Indian Economy

showing image related to Indian Economy

- Published on: July 21, 2016