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Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century.
For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian
giants - India and China.
The rich countries of Europe have seen the greatest decline in global GDP share by 4.9 percentage points, followed by the US and Japan with a decline of about 1 percentage point each.
Within Asia, the rising share of China and India has more than made up the declining global share of Japan since 1990.
During the seventies and the eighties, ASEAN countries and during the eighties South Korea, along with China and India, contributed to the rising share of Asia in world GDP.
India is slated to become the third largest economy with a share of 14.3 per cent of global economy by 2015 and graduate to become the "third pole" and growth driver by 2035.
As the share of USA in World GDP falls from 21 to 18 per cent and that of India rises from 6 to 11 per cent in 2025, the latter emerges as third pole in the global economy, according to ADB India Economic Bulletin.
India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years.
A growth rate of above 8% was achieved by the Indian economy during the year 2003-04 and in the advanced estimates for 2004-05, Indian economy has been predicted to grow at a level of 6.9 %.
Growth in the Indian economy has steadily increased since 1979, averaging 5.7% per year in the 23-year growth record.
Many factors are behind this robust performance of the Indian economy in
2004-05. High growth rates in Industry & service sector and a benign world economic environment provided a backdrop conducive to the Indian economy.
Another positive feature was that the growth was accompanied by continued maintenance of relative stability of prices.
There is a paramount need to move Indian agriculture beyond its centuries old dependency on monsoon.
This can be achieved by bringing more area under irrigation and by better water management.
In
spite of measures taken to attract Foreign Direct Investment
(FDI), the
inflow was below expectations in the last five years. A significant
achievement of the economy in the external sector has been the steady and
sustained improvement in the balance of payment position. Another
notable development was the decline in the inflation rate during the five
years.
Value-Added
Tax (VAT), one of the most radical reforms to be proposed for the Indian economy, has
been approved by 21 Indian States. Over 120 countries worldwide have introduced VAT over the past three decades and India is amongst the last few to introduce it.
Scale to Next Economic Level
- by Aravind Sitaraman
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Religious festivals are big business in India. And Diwali is the mother of all festivals if one goes by the money spent. When Diwali was ushered in on Wednesday with Dhanteras, it climaxed a period of frenzied shopping and big spending. (Go, Celebrate, Times of India, Editorial, The Times of India, Nov 08, 2007)
Business executives in India are the most optimistic across in the world, when it comes to their take on inflation and the overall economy in the country six months down the lane, a new survey states.
(Ceos Gung-Ho On The Economy , Deccan Herald, Correspondent or Reporter, Nov 08, 2007)
While one may find the richest man in India, disparities in the country are so wide that it isnt difficult to find the poorest man either. (India In The Billionaire Club: An Increasing Divide , Deccan Herald, Editorial, The Deccan Herald, Nov 08, 2007)
The latest export data released for the month of September 2007 by the Commerce Ministry has surprised many.
(Export Resilience , Deccan Herald, Editorial, The Deccan Herald, Nov 08, 2007)
The people of Bengal did not need the states home secretary to tell them that Nandigram had turned into a war zone. That the rule of law has ceased to exist in the area is public knowledge. (End Violence, Telegraph, Editorial, The Telegraph, Nov 08, 2007)
Chief Minister Vilasrao Deshmukh completed three successful years in office. (Sharing The Benefit Of The Boom , Frontline, LYLA BAVADAM, Nov 08, 2007)
On one of the worst days of fighting in the north, in which according to the military at least 63 persons were killed, Sri Lanka President Mahinda Rajapaksa unveiled a hike in defence outlay on the plea that it was essential to completely wipe . . . . (63 Dead In Sri Lanka Fighting, Hindu, B. MURALIDHAR REDDY, Nov 08, 2007)
The stock market on Wednesday fell for the third day in a row with the benchmark Sensex shedding another 111 points, despite sharp gains registered by heavyweights like Reliance Industries and State Bank of India.
(Sensex Down 111 Points, Pioneer, Correspondent or Reporter, Nov 08, 2007)
From India's point of view, what can be the worst case scenario in Pakistan? It is the replacement of President Pervez Musharraf by a coalition of the Jamaat-e-Islami (Jamaat) and its allies, the Taliban-Al Qaeda combine and the fundamentalist . . . (Draft A Plan Of Action, Pioneer, Hiranmay Karlekar, Nov 08, 2007)
The flavour of the times seems to be China and India. Comparisons between the two are commonplace. (Making Of A Strong India, Pioneer, Vinayshil Gautam, Nov 08, 2007)
THIS is the second year of the four-year fiscal correction path adopted by the Maharashtra State Legislature with the enactment of the Maharashtra Fiscal Responsibility and Budgetary Management Act, 2005 (MFRBM Act). (Out Of The Woods, Frontline, Oommen A. Ninan , Nov 08, 2007)
Indian companies are making a killing by controlling their carbon emissions and trading the credit points accrued in the process to global business giants who have an obligation under the Kyoto protocol to bring down their carbon emission targets . . . . (India Inc Makes Big Bucks From Carbon Trading , Pioneer, Correspondent or Reporter, Nov 08, 2007)
ONGOING political turmoil and deteriorating security have purportedly touched off the proclamation of emergency rule in Pakistan. (Other Voices - Pusto Press, Dawn, Editorial, Dawn, Nov 08, 2007)
THE imposition of emergency rule throughout Pakistan on Nov 3 is a clear indication of the failure of the policies pursued by General Musharraf both as president and the patron saint of the ruling PML-Q which forms the rubberstamp government . . . . (Back To The Drawing Board, Dawn, Syed Shahabuddin, Nov 08, 2007)
India will send an expert to Switzerland to explain the details of the proposed Indo-US civil nuclear cooperation agreement, visiting Swiss President Micheline Calmy-Rey said.
(Pm Envoy To Lobby The Swiss, Asian Age, Correspondent or Reporter, Nov 08, 2007)
TOO much thinking does not produce clarity but only confusion. Our contemplative Prime Minister, Dr. Manmohan Singh, seems to be thinking so much and so hard about the Indo-U.S. nuclear deal that he and his government have become the epitome of . . . . (American Pressure, Frontline, Venkitesh Ramakrishnan, Nov 08, 2007)
SOME 60 years ago Time magazine carried a perceptive story on the then Prime Minister of France Robert Schuman. (Art Of Sinking, Frontline, Bhaskar Ghose, Nov 08, 2007)
The Janadesh Yatra has given the movement for land rights fresh momentum and also captured the popular imagination. (March For Land, Frontline, Jayati Ghosh, Nov 08, 2007)
MARIO VARGAS LLOSA is loved by millions around the world, especially in his country, Peru. Like Jorge Luis Borges, Llosas aesthetic pursuit coincides with his political concern, though it is often alleged that his writings are not candidly devoted . . . (Defiantly Amiable, Frontline, Shelley Walia, Nov 08, 2007)
OECDs World Energy Outlook predicts a bleak global energy scenario. The global demand for oil is projected to reach 116 million barrels per day by 2030. Even as oil prices rise to unprecedented levels, the Government is reluctant to take the . . . . (Inclusive Growth Runs Into An Oil Slick, Business Line, G. Srinivasan , Nov 08, 2007)
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