India - The Uncomfortable Rise of The Rupee

Introduction

The article above, “The uncomfortable rise of the rupee” presents the real situation from India were the rupee has appreciated and the economic development helped the country to “revive”. But even its national currency appreciacion was less dramatic than that of the Philippine peso, Brazilian real or Turkish lira that was not a good things for other countryes. India become one of the most attactive destinations for business and investment opportunities due to huge manpower base, diversified natural resources and strong macro-economic fundamentals. Although India’s economy become the central attraction there it still exist the huge social difference and we speak about the poorest and the richest. It is well know that India is the country were we find this discrepancy, on the one hand we find the richest of the world and on the other hand there are still people who are dying of starvation. Having the most important economic development of our day, India become an attraction for foreign investors.

Having some economic knowledges we will try to find which were the factors that help India in its economic development and also if will continue to grow. You probably know that India is the country were religious and social belief are dependent one with another as a poor man stay between the poorest and the rich one between the richest. Another aspect of which will discuss it is the Chineese people and why are they so thrifty, if their savings will help the booming of export in their country. Both India and China are countrys with impressive economic growth but they are different from culture, religion to politics, industry and way of living .

Outline the economic position of India

As we all know, indian economy is becoming the centre of attention. Its process of growing had begin in the years since independence. Having an economy with falls and rises nowdays India’s economic development is one of the most important of our day.

Now India is growing faster than the U.S., they have a private- sector saving rate which means that the debt is almost all held at home rather than abroad, which makes life simpler. As an example we found that real GDP growth for the fiscal year ending March 31, 2007 was 9.4%, up from 9.0% growth in the previous year. Growth for the year ending March 31, 2008 is expected to be between 8.5-9.0%.

Explain the reasons why India’s currency has appreciated

India succeded in getting a growing economy for theree reasons. The first one is about the maintaining stable GDP growth rates. Second, IT and IT Enabled Services industry export services and this expand the market share in the world market. The results were excelents: IT and ITES industry accounted for 4.1 per cent of GDP in 2004-05, it has contributed to balance of payments and current account changed from deficit to surplus from 2000-2001. Third, because India has 12 overseas assets of oil and gas field in 12 countries and economic development has increase energy consumption since the mid-1990s IT and ITES and petroleum industries have been taking advantage of globalization.

Whose economy is India mostly dependent on?

Having a mixed economy, India is responsible for a large amount of exports to the world. It is dependent on foreign goods such as manufactured goods, raw materials, and foodstuffs. India has trading relations with Japan, Germany, Great Britain, United Arab Emirates, Belgium, Hong Kong, and Italy.

India is known for preserving the gap between the rich and the poor. Is any economic purpose or just religious borders?