India’s Role in a Changing Global Economy


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.
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  • 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:
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- Published/Last Modified on: July 21, 2016