• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Examine the factors, which appear to have restricted India's rate of economic growth.

Extracts from this document...

Introduction

Economics Essay: Examine the factors, which appear to have restricted India's rate of economic growth.(15 marks) Despite India's fine achievement in agriculture and social development, India has been left far behind other developing countries in terms of economic growth. There have been many factors, which have contributed to the restricted economic growth of India. Each of these factors will be examined in this essay. The first factor is the size of India's population. India has the second largest population after China, its population being close to the billion mark. The large population has been an obstacle in terms of economic growth. The large population has put an immense pressure on the limited resources, thus causing a lack of basic amenities such as clean water, electricity and food. The increasing population has led to mass poverty and the country is said to be 328 million below the poverty line as per the World Bank report '98. ...read more.

Middle

The low international trade is due to high trade barriers in the form of quotas, tariffs and other excise duties. Another problem with a closed economy is the fact that foreign investment is limited. An economy, which is closed cannot benefit from specialisation and comparative advantage. Once India reduced its barriers, its exports increased by 5% in 1995. India also encouraged more investment in the long run. 'Bureaucracy' has been a major attribute to restricting India's growth of the economy. The imposition of many strict restrictions but the Indian government in terms of foreign exchange control and planning, have both prevented India operating within a free market system. This can only lead to inefficiency and misallocation of resources in the economy. The 'red tape' makes legal procedures very monotonous and time consuming. The strict restrictions slowed down investment projects and limited the inflow of foreign income. ...read more.

Conclusion

Also the quality of some of its raw materials such as water is not satisfactory thus increasing the producers cost unnecessarily. The quality of Labour is also not adequate as skilled labour is limited due to poor education. India also has a poor infrastructure, thus restricting it further, in terms of transport and communication. These factors thus restrict from the economy being productive and instead act as barriers, which a firm has to overcome in order to survive. India's restricted growth has been due to the factors examined above. India over last five years has yet again opened its economy even more, reduced the strict planning and has improved the infra structure. This has brought it more investment from abroad. It can now be said that India is in stage four of Rostow's stages of growth model. It is said to be in the 'drive to maturity' as its growth is now becoming self-sustaining and its industry becoming more diverse with its infra structure improving by the day. India Essay GKB ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. GDP and Growth

    The improvement of the technological could be one of the factors that might contribute to the rate of the economic growth. New technology equipments could bring more productivity but it can be argued that it will also affect the unemployment rate as some of the jobs have been replaced and no longer existed.

  2. Retailing In India - A Government Policy Perspective

    transformation that has started bringing in bigger Indian and multinational operators on to the scene. With the advent of these players, the Indian consumer is on his way to become what his counterparts in the more developed countries of the world have been for decades: The King of the market place.

  1. China or India? Many companies ask themselves this question. Due to saturated markets, increasing ...

    Another problem is as well that FDI is still restricted. Political lobbying is as well important and India struggles with corruption and bureaucracy. It has problems with distribution systems and a poor infrastructure in the rural parts. Envron for example was always closed on Mondays due to lacks of power supply.

  2. Comply a report detailing a comparative analysis of two economic regions.

    An international study of entrepreneurship found Wales had a low percentage of the population involved in emerging or new firms. Wales has one of the lowest rates of individuals involved in starting a business, there is a low rate of start-up activity generally.

  1. Discuss the assertion that the concentration of economic power in the public sector undermines ...

    the country with the lack of proper regulations, and hence the effect of the investments on economic growth is mitigated. The economic growth cannot solely depend on foreign direct investments due to this reason. The concentration of economic power in the public sector also undermines the foundations of economic growth by affecting the labour as a resource.

  2. This report is for an M.P. who is about to appear on Question Time, ...

    influence the force of demand in the economy * To redistribute income from rich to poor There are several types of taxation, which include: 1. Income Tax 2. Valued Added Tax (V.A.T.) 3. Corporation Tax 4. Inheritance Tax (I.H.T) Income Tax Income tax involves charging on incomes earned by individuals as employees through the Pay as You Earn (PAYE)

  1. Debt Sustainability and the Exchange Rate: The Case of Turkey

    or other means (4%); 9% of the debt is owed to international institutions and the remaining 13% ($19.9 billion) is owed to the IMF. Considering domestic debt stock alone, we see that 52.8% represents the Treasury's indebtedness toward other public institutions and 47.2% represents the Treasury's indebtedness toward the market.

  2. The development strategies which have been adopted by India and China over the last ...

    1.3 Research question America has long been the primary engine of the global economy. Would China and India be capable candidates in becoming the second important engine of growth of the global economy? 2.0 Research methodology The data for this assignment is obtained from various secondary sources i.e.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work