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.
- 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.
- 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:
- Published on: July 21, 2016