Essay Preview: Economic Liberalization
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Since the economic liberalization in 1991, India has abandoned its socialism governing approach. In these ten years, India had progress to a market based economy with reducing government control.
Indias economic reforms induced huge changes to its financial condition. GDP greatly expanded and become the tenth-largest economy in term of nominal GDP, which is $1.946 trillion in 2012(India, 2011).
GDP growth rate was 6.86% in 2011 according to the World Banks data. It was predicted that by 2035, India will overtake Japan and become the third largest economy in the world, just behind the US and China(Wilson & Purushothaman, 2006).
Agriculture is one of the major business sectors in India which accounted for 15.7% of GDP. Agriculture also employed over half of the workforce in India, which makes India the second largest country in term of farming output(CIA – The World Factbook – India, 2011). It is also worth mentioning that India is the world largest producer of milk in the world(Indias position in the world agriculture, 2010).
Service sector is another important sector in India. It accounted for 55% of GDP in India(CIA – The World Factbook – India, 2011). India has a sharp increase in well-educated labor force with fluent English speaking skill in order to response to the increasing demand of outsourced customer service from foreign countries.
Although a lot of effort has been made, poverty is still a serious problem in India. 32.7% of its total population falls below the international poverty line. 68.7% live on less than US$2 per day(Poverty and Equity Data, 2011).
World Bank reported that the India poverty alleviation is on its track and by 2020 the poverty rate in India could fall to 20.3%(Kumar, 2010).