The paper “ Comparing Regional Development in China and India” is an impressive example of the assignment on macro & microeconomics. India’ s economy historically focused on central planning that involved business-unfriendly regulation and trade barriers which led to an economic crisis in 1991. This prompted the government to launch economic liberation to drive economic recovery. These regulations were tailored to adopt a capitalist system of trade and industry in order to spur economic growth (ESI, 2007; Pandit, 2005). India’ s economy owes its progressive growth to economic reforms enacted in 1991 under the leadership of the then prime minister Manmohan Singh.
These reforms were tailored towards the liberation of the economy to international trade. In this new framework, India adopted liberal and free-market principles that would see the end of the British colonial legislation that impeded industrial development. As a requirement, government controls over the setting up of industry by the old British legislation obstructed economic development due to minimal investment in the local economy (The Economist, 2010). Owing to the 1991 economic reforms, India’ s economy has experienced progressive growth since Prime Minister Manmohan Singh’ s reign i. e.
1991-1996. The International Monetary Fund 2013 report ranks India among the world’ s G-20 economies. In the fiscal year, 2012 India comes in third place in terms of Purchasing Power Parity worldwide and is ranked 130th worldwide in terms of nominal GDP. The IMF report also reveals that India is the 19th largest exporter and the 10th largest importer in the world despite a dismal economic growth performance in the fiscal year 2012-2013 at 5%, 1.2% less than the fiscal year 2011-2012.Notwithstanding, India’ s economy is yet to address the unemployment problem which was at 9.8% nationwide in 2011.
Similarly, the rate of inflation was at an all-time high at 7.55% in 2012 (The Hindu, 2011). More so, India’ s greatest impediments to economic development lie include poor infrastructure, public sector reforms, HIV/AIDS eradication, labor regulations, agricultural and rural underdevelopment (World Bank, 2013).
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