The economy of India could well be described in two words – developing and mixed. Developing an economy means that it is still developing and not as affluent as the economy of some of the developed western countries. A mixed economy, on the other hand, refers to a capitalist economy as well as an amalgamation of private and public enterprises. The Indian economy is growing at a good rate. The agricultural, industrial as well as service sector in our country is expanding and improving with time and thus contributing to its economic growth.
Long and Short Essay on Indian Economy
Essay 1 (250 words)
The Indian economy has seen major growth in the last few decades. The credit for this boom largely goes to the service sector. Agriculture and associated activities have also been improvised to match the global standards and the export of various food products has seen an upward trend thereby adding to the economic growth. The industrial sector does not lag behind a bit. A number of new large scale, as well as small scale industries, have been set up in recent times and these have also proved to have a positive impact on the Indian economy.
Economic Growth of India in Recent Times
During the last year, India suffered from inflation due to the rise in the prices of food items. However, it is recovering from the loss and the economic condition is likely to improve this year.
The Central Statistics Organisation (CSO) has recognized India as one of the fastest-growing economies. It has been estimated that if we continue to grow at this rate, we would likely become one of the top three economic powers in the world over the next decade or two.
Factors Aiding Economic Growth
Here are some of the factors responsible for India’s economic growth:
- Foreign Direct Investment (FDI) has increased for many sectors including automobiles, construction, and computer software.
- The employment opportunities in many sectors including IT and transport have increased.
- The number of startups in India is growing and thus creating more business and employment opportunities.
- The industrial sector of the country is prospering. The merchandise exports and imports in India are growing at a good rate.
We have a pool of talented and creative youths who are hard-working and ambitious. Our government is also taking initiatives to improve the economic condition of the country by bringing in new opportunities for employment and business. No wonder, our economy is growing at a good pace.
Essay 2 (400 words)
British ruled our country for nearly 200 years. They looted our country and left it in a poor economic state. However, our efficient political leaders who played a major role in the independence of the country took charge of the condition and worked collectively for its socio-economic progress. The government of the country assessed the problematic areas and came up with policies to raise its economy.
Government’s Role in Economic Growth
The majority of the working Indian population was and is still engaged in the agriculture sector. Growing crops, fishing, poultry and animal husbandry were among the tasks undertaken by them. Many people were also engaged in the cottage industry. They manufactured handicraft items that were losing their charm with the introduction of industrial goods. The demand for these goods began to decline. The agricultural activities also did not pay enough.
The government identified these problems as hindering the economic growth of the country and established policies to curb them. Promotion of the cottage industry, providing fair wages to the laborers and providing enough means of livelihood to the people were some of the policies laid by the government for the country’s economic growth.
The Rise of the Industrial Sector
The government of India also promoted the growth of small scale and large scale industry as it understood that agriculture alone would not be able to help in the country’s economic growth. Many industries have been set up since independence. A large number of people shifted from the agricultural sector to the industrial sector in an attempt to earn better.
Today, we have numerous industries manufacturing a large amount of raw material as well as finished goods. The pharmaceutical industry, iron and steel industry, chemical industry, textile industry, automotive industry, timber industry, jute, and paper industry are among some of the industries which have contributed a great deal in our economic growth.
The Growth in Service Sector
The service sector has also helped in the growth of our country. This sector has seen growth in the last few decades. The privatization of the banking and telecom sectors has a positive impact on the service sector. The tourism and hotel industries are also seeing a gradual growth. As per a recent survey, the service sector is contributing to more than 50% of the country’s economy.
The Indian economy has seen several positive changes since independence. It is growing at a good pace. However, the rural regions of our country are still under-developed. The government must make efforts to improve the economic condition of these areas.
Essay 3 (500 words)
The Indian economy is growing at a steady speed. The increasing number of various manufacturing industries the growth in export of manufactured goods and the privatization of banking and telecom sector have made a positive impact on the Indian economy. India had seen a very difficult phase after independence when the economic condition of the country declined at a rapid speed. The government of India, as well as the talented youth, have worked hard to raise it.
The decline in Indian Economy
India was once known as the golden sparrow because of the wealth accumulation in the country. This is one of the main reasons it attracted foreign invaders. After the colonization by the British, India was left with almost nothing. Most of the Indians were engaged in cottage industries. However, the products manufactured by them were no longer in demand as people had begun using industrial goods. This had an adverse effect on the economic condition of these artisans and resulted in a decline in the country’s economy.
Government Policies for India’s Economic Growth
Handling the economic condition of the country was one of the main challenges for the newly formed Indian government. In order to ensure an upward graph, it came up with the following policies:
- Ample means of livelihood to the citizens of the country.
- Equal pay for equal work without any gender bias.
- Improvement of public health and standard of living.
- Prevent the concentration of wealth.
- Distribution of the ownership of the community’s material resources.
- Reasonable wages for workers so that they afford a decent standard of living.
- Promotion of cottage industry by state.
Economic Growth of India
The efforts of the Indian government and the hard work of the general public have paid off. India has become one of the fastest-growing and developing nations. Our country has made good progress in various industries during the last few decades and this has led to its economic growth. Information Technology, infrastructure, retail, financial services, automotive and healthcare are among the sectors that have seen a major boom lately. These are growing at a steady pace and are contributing majorly to the country’s economic growth.
The average GDP of our country is around 7 percent. India stands at the seventh position worldwide when it comes to GDP. However, even as India has attained this stature, the picture is not all rosy. The main problem in our country is the unequal distribution of wealth. While a good amount of our population is earning well and is contributing to the country’s economic growth, many people are still not able to make their ends meet. There are still many people in our country who are living below the poverty line. The economic growth of our country is of no good if such extreme poverty still persists.
The government of our country has taken several initiatives to ensure economic growth and development ever since independence. Many of these initiatives have proved to be fruitful and have contributed to the country’s economy. The sharp mindedness of the Indian youths and the numerous initiatives taken by the Indian government has collectively contributed to economic growth. However, we still have a long way to go.
Essay 4 (600 words)
The news of demonetization was a big shocker for every Indian. In November 2016, Prime Minister, Narendra Modi announced the scrapping of high-value currency notes in an attempt to bring down the black money accumulation. The decision was also aimed at promoting the use of plastic money. However, it called for a lot of discomfort and discontentment among the general public.
Indian Economy after Demonetization
The worst affected were the people in rural areas who did not have access to the internet and plastic money. Many big and small businesses in the country were hit badly. Several of them were shut down as a result of this.
While the short term effects of demonetization were devastating, this decision did have a brighter side when looked at from a long term perspective. Here is a look at the positive and negative impact of demonetization on the Indian economy:
Positive Impact of Demonetization on Indian Economy
Here are the ways in which demonetization affected the Indian economy positively:
- Break Down of Black Money
Black money accumulation impacts a country’s economy negatively. Many businesses in India work on the power of black money. Demonetization helped in closing these businesses and destroying the black money accumulated by the people of India thus having a positive impact on its economy.
- The decline in Fake Currency Notes
A number of fake currency notes were being circulated in the country having a bad impact on its economy. Demonetization helped in doing away with the high-value fake currency notes.
- Increase in Bank Deposits
The circulation of the old currency notes was banned with immediate effect. All those who had these currency notes required depositing them in the banks so that their money did not go wasted. Cash amounting to trillions of rupees was deposited in the Indian banks and this led to an increase in the GDP of the country.
- Real Estate
Real Estate is one industry that runs largely on black money. Demonetization stopped the flow of black money in the real estate sector to ensure fair play.
- Increase in Digital Transactions
The cash crunch in the market encouraged people to make digital transactions. Almost every shop/ clinic/ institute in the country installed machines to accept debit/ credit card payments. Over time people grew more accustomed to using plastic money. This is a great way to track tax evasions and grow the company’s economy.
- Cutting Monetary Support for Terrorist Activities
Anti-nationals support terrorist activities in the country by providing monetary support to the terrorist groups. This money is used to purchase arms and plan terrorist activities in different parts of the country. Demonetization helped in cutting down on the monetary support provided to the terrorist groups to a large extent. It thus promoted peace and helped the country prosper at various levels.
Negative Impact of Demonetization on Indian Economy
Most of the positive impacts of demonetization are said to be long term. We may begin to see our country’s economic growth with the positive changes brought about by demonetization in a few years from now. However, the negative repercussions of demonetization on the Indian economy have been tremendous.
Many of our industries are cash-driven and sudden demonetization left all these industries starving. Many of our small scale, as well as large scale manufacturing industries, suffered huge losses thereby impacting the economy of the country negatively. Many factories and shops had to be shut down. This did not only impact the businesses but also the workers employed there. Several people, especially the laborers, lost their jobs.
The agricultural sector, industrial sector as well as the service sector was hit badly by demonetization.
Thus, demonetization had both positive and negative impacts on the country’s economy. The implementation of this policy is said to be largely flawed. If it had been implemented in a better way, it would have ensured less inconvenience to the general public and greater economic growth.