The Importance of India in the World Economy

india in world economy

India’s size, population, and steady pace of diversity have been astounding many observers. The stubborn persistence of poverty, malnutrition, and illiteracy, makes it resemble a developing country.

The strengths of the country lie in its engineering and software skills, with the accompanied recent great emphasis on its human resource and exports. But that is not all; it is the ambitious forays and acquisitions of big businesses on top of everything that make it a noticeable contributor to the economy of the world.

The Crown IT Industry

It is the IT industry of India that has come out as the leader in the global market, with top quality engineering and designs that are demanded widely for so many products sold all around the globe. At the same time it has also helped spur the revolution for the internal consumer economy of India.

Most people don’t know that more than half of the leading IT firms originate from India, and this size has been predicted to increase four times by the year 2035 because of the emerging small and medium sized businesses in the country that are ready to fuel the industry. The same year it is assumed that the country will become the third largest economy on earth.

Since the Second World War, the world economy has considerably evolved. Emerging market countries and plenty of other emerging economies have been enjoying the transition that leads to one half of the world’s GDP measure when it comes to PPP. These are the countries that have most of the globe’s currency reserves, while also representing a majority of the entire world’s population.

The Big League

India and China are the two nations that occupy the slots for the emerging global order. According to a paper by Professor Srinivasan, when we talk about PPP exchange rates for Gross National Income, India scores the fourth spot in the world, right after US, China, and Japan.

The entire share in GDP for India stood at 5.9% a decade ago, at the time it continued with a global growth percentage of 8%. Records show that the last decade experienced an average downfall of 6.4% domestically. But the overall growth rate has been 8%.

The indices of financial integration and trade for the country have risen sharply as well over the same decade.

Maintaining the Numbers

The only thing that skeptics keep pointing out is that would the country be able to hold its steady growth, because it looks like there is no stopping it now, not by the trend graph patterns. The reason behind all that optimism is justified for several different realistic reasons.

First off, there has been a change in the structure of the economy of India, its share in agriculture has been falling, and there has been an increase in the shares of services and industry. And that the manufacturing sector has witnessed the shift to a higher share.