The State of India’s Economy, Research Paper Example

Abstract

India economy has faced a lot of challenges in its GDP growth. The paper gives the analysis of the effects that have led to the India’s slow growth in the economy. The economic growth has led to the purchase of the more new cars by the middle class that have been consuming much to the economy. The cars as a result have led to the problems of congestion and pollution within the state. Therefore, according to the analysis on the paper, India needs to try and control the population growth which will in turn enhance a stabilized social and economic environment. The government will be able to regulate its expenses on the population and focus on the country’s economic growth.

The Analysis of the India’s Economy

The average growth rate has been more then 7% since 1997, achieving 7.3% growth in GDP in 2009, achieving 8.5% in 2006 and 9% in 2008. Because of slow growth, the country experienced the return of a large deficit in 2008 because global commodities skyrocketed in price and doubled the governments cost. The analysis indicates that the government has been spending a lot of money to cover the expenses they have been spending on the population. The slow growth also illustrates that by the end of 2008, the country faced poverty situation. India does not like spending their finance and that is why it has experienced the slow growth rate. In the real sense, its economy was hit in the later part of the global decline which in turn there was a drastic fall. The fall was followed by the lower export, corporate restructuring and the lower outflow of the capital. The government should allow the investors and put the laws that favor them in order to boost the economic growth. The government should also take their time not only on the industrialized issues but agriculture as well. If this is not done, then the economic growth will continue to move at a slow rate.