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Economy
Currently the
fifth largest economy in the world, India has developed a diverse
and competitive industrial base. Plans for the various sectors
are drawn up by the Planning Commission which is headed by the
Prime Minister. The National Development Council, comprising the
state chief ministers, is the highest decision- making body. Initially,
emphasis on self-reliance led to the establishment of a strong
public sector presence in areas like steel, cement, power and
heavy engineering.
The tone has
altered today. Reforms ushered in during the 1 990's led to much
economic restructuring, holding out the promise of a strong and
resurgent India. The results showed: GDP grew by 7.1 % in 1996,
while inflation dropped from 12% in 1991 to the current 3.70%.
In the last three years, the industrial sector has registered
a healthy growth, averaging 7%. Globalization and Liberalization,
key aspects of the new economic order ensure that India is no
longer isolated from international markets. Within India, there
is a strong private sector presence and foreign investment has
entered many sectors, including the previously state monopoly
of infrastructure.
In an attempt
to create a positive milieu for economic growth, the government
has introduced measures like a reduction in customs duties and
tax holidays in some sectors. Incentives have also been giving
to industries like pharmaceuticals, housing, information technology
and textiles; Corporate restricting measures are being planned
and this will inevitably lead to accelerated industrial growth.
Exports, which now reflect an impressive product range, have shown
a significant upward trend, and not surprisingly there are plans
to tap new markets. Are now being adopted.
The competitive
environment has acted as a positive challenge to the domestic
industry, which has lost no time in restricting itself to meet
the changed market placed.
Today, India
manufactures highly sophisticated telecom equipment and computer
software and has entered high-tech areas like nuclear power generation
and the manufacture of space equipment. Bangalore, which is the
nucleus of such activity, is referred to as the Silicon Valley
of India. |
