Debashree Tripathy, KIIT School of Law, Bhubaneswar
ABSTRACT
Over one billion people in India are at a critical juncture, both economically and humanly. The country's GDP in 2017 was $2.6 trillion, making it the world's sixth largest economy. A GDP growth rate of 7.5 percent is projected in 2019, which indicates that it will continue to be a major contributor to global economic expansion. And it does so with a population of around 1.35 billion people spread throughout tens of thousands of large cities and rural areas, making it the world's largest democracy and second most populous nation.
For its "Future of Consumption in Fast-Growth Consumer Markets: India" report, the World Economic Forum collaborated with the consulting firm Bain and Company to present an optimistic outlook for the country's consumer markets. The middle class in India is growing, and some 25 million families are now able to escape poverty.
According to this study, the country's consumption future remains generally optimistic. However, to fully realise India's immense future implied economic potential, it is necessary to accelerate and maintain the country's upward trajectory on key human development indicators while also pursuing growth that benefits all sections of society equally.
All of these challenges may be addressed in the future by India. Free market liberalisation, improved openness, and increased infrastructure investment have all occurred in India's economy since 1991. This allowed India's economy to flourish and develop at a rapid pace. As a result of these challenges and hurdles, the economy continues to be hampered by poor tax collection rates as well as a lack of infrastructure.
Our economy has also been impacted by globalisation.The effects of globalisation on a country's economy are numerous. As a result of globalisation, the global market has become more integrated and competitive. Trade in goods and services, as well as capital mobility, demonstrate this interconnectedness. As a result, domestic policies and market circumstances do not alone determine domestic economic patterns.
To put it another way, they are influenced by the economic policies and conditions in both the United States and abroad. As a result, a globalising economy cannot afford to disregard the expected actions and responses of policies and events elsewhere in the globe while formulating and evaluating domestic policy. This limited the government's policy options, suggesting a degree of national policy autonomy. Let's take a look at some of the ways in which the economy is affected.
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