Indian Economy - Going Global

INTRODUCTION

Globalization in India began in the early 1990s. Industrialization is the reason for globalization. Business is the key. When a company puts in a home nation of its subsidiaries in other countries (host nations), it is a multinational company, and it begins the process of globalization, with a local company serving the entire world with their products and services. The advent of the Internet and the resulting "new economy" opens up many new business modelsOpportunities - and an "inevitable" number of business losses. Shapiro and Varian (1999) argue that while technological change - not economic laws. This is globalization in the perspective of the company. Globalization in India, the country has transformed system. Currently, India is seen as an economy dominated country, and not driven the policy as it once was. Political dominance has fallen significantly in those days. Adoption of the principles of globalization and liberalization in Indiahas the horizon of the country's consumers, worldwide. Consumers in Germany are much more aware. Market Information in India has become clear.

Liberalized policy has led the industry to achieve faster growth. BPO, IT, ITES, retail and insurance sectors have performed well. Both men and women have equal opportunities in this sector have. The success in India is the reduction of gender inequality in India. More over, is the development in the areas of education and awareness largelymark in the country in the era of globalization in India.

Indian Economy - HIGHLIGHTS

India is among the five countries with 50 percent of global production) (or GDP.
FDI inflows have jumped by almost three times the US-$ 15.7 billion in the period 2006-07, compared to $ 5.5 billion in 2005-06.
The total income of the top 500 companies rose by 28.4 percent in 2006-07 to a total of 469.51 billion U.S. dollars.
India's National Stock Exchange (NSE) for first place in the stock marketFutures and second in index futures trading in the world.
Twenty Indian companies have it listed in the list of 100 Boston Consulting Group's New Global Challenger Giants.
According to a study by the McKinsey Global Institute (MGI) will be in India, the world's fifth largest consumer market (from twelfth) in the world until 2025.
The number of corporations has increased to an annual average of 55,000 companies in the last two years to 865,000, from 712,000 companies at the end2005th
Four Indians and seven Indian microfinance companies make it to the Forbes list of wealthiest CEOs of the world's Top 10 World's Top 50 Microfinance Institutions, respectively.
India has the number of private equity (PE) funds operating amongst the BRIC markets.
Mumbai has created the tenth place among the world's major centers of commerce in terms of financial flow volumes by a survey by MasterCard Worldwide.

Another important aspect is that sincebroad-based nature of the growth process. While the new economy sectors like information technology and biotechnology is growing by 30 percent, significantly old economy sectors like steel were also key players in the Indian growth. Thus, for example, India has moved two places to fifth-largest steel producer in the world. And with its production and service sectors on a blazing growth, Lehman Brothers Asia estimates India to grow to 10Percent annually over the next ten years.

CONTRIBUTION OF INDUSTRY TO Indian economy

Industrial Revolution is the springboard for globalization. In India, the contribution of each sector and all major contribution to the rapid growth of the Indian economy.

The IIP data show that in April-November 2007 grew by 5.5 percent cotton fabrics. During 2006-07 textile exports recorded an increase of 6.9 percent over 2005-06. In April-October 2007, Textiles --Exports increased marginally by 1.49 percent on year-to-year basis. Indian government has a lot of subsidies for the textile industry through the various systems of the Fund and textile parks. The growth rate in the paper industry increased by 8.7 percent during 2006-07, but dropped to 1.6 percent in April-November 2007.

Leather goods that contribute significantly to job creation and export earnings registered an impressive 12.2 percent growth in April-November2007th The chemical industry is constantly at 10%. The value of pharmaceutical production grew by more than tenfold from Rs 5000 crore in 1990 to over 65,000 crore in 2006-07. India is now recognized as one of the leading global players in pharmaceuticals. While the production of rubber footwear rose by 4.7 percent, plates (PVC / rubber) increased by 18.8 percent. PVC pipes, which have the highest weight in the product group, grew by 27 percent during the April November 2007. Crude oilProduction in April-November 2007 amounted to 22.69 million tonnes (MT) compared to 22.56 MT during the corresponding period last year, with a slight increase of 0.60 percent. In this area, the demand is always greater than supply, and India for sale and to encourage private players like Reliance to enter in the petroleum industry.

The cement industry is a growth of 7.72 percent (provisional) in April-November 2007. Production rose from 99.99MT during the April November 2006 to 107.71 MT during the April November 2007. Indian steel companies have diversified their presence in the global market, particularly through the establishment of the state-identified place of the-art plants, continuous modernization and improvement of energy efficiency investments. Mittal Steel has created a buzz all over the world with its recent merger with Arcelor. While overall industrial production grew by 9 per cent in April-December 2007, which is important capital goodsproduction increased by 20.2 percent to 18.6 percent during the same period in 2006. Services grew by 10.5 percent in April-September 2007, on the back of 11.6 per cent in the corresponding period in 2006-07. Production rose by 9.6 percent in April-December 2007, on the back of the 12.2 percent growth over the same period in 2006-07. Core infrastructure sector continued its growth rate recording 6 per cent growth in April-November 2007. While exports grew by 21.76 percent inApril-December 2007 imports increased by 25.97 percent over the same period.

Role of information technology

The increased IT / ITES industry's contribution ever to the GDP of the country was of a share of 1.2% in FY98 to 5.2% in FY07, it has foreign exchange reserves of the country by increasing exports by almost 36% and Direct employment growth contributed to a CAGR of 26% in the last ten years, making it the largest employer in the organized private sector in theCountry.

In the past two decades, the Indian IT / ITES industry contributed significantly to economic growth in India in relation to GDP, foreign exchange earnings and job creation. The industry has a trigger for many "firsts have been" and has helped not only to unleashing the hitherto untapped entrepreneurial potential of the Indian middle class, but also global excellence in the Indian market.

The current and future role of IT / ITES industry in IndiaEconomy is well established. The industry is proving to be the main growth centers in the service sector, which rose again, some indicators of the growth in driving country.Export outcome in FY08 to around 40.0 billion USD with an increase of 36%. Direct employment in this sector is expected to 2.0 million by the end of FY08, growing at a CAGR of 26% over the last ten years, making it the largest employer in the organized private sector in the country. IT industry isSpearhead of India globally.

CONCLUSION

After some experts believe that the shares of U.S. GDP in the world expected to fall (from 21 percent to 18 percent) and India's GDP to rise (from 6 percent to 11 percent in 2025) and thus experience the latter as the third pole position in the global economy after the U.S. and China.

Indian economy experienced a GDP growth of 9.0 percent in 2005/06 to 9.4 percent during 2006-07. By 2025, the Indian economy is projected to more than 60 percentPercent of the size of the U.S. economy. The transformation into a tri-polar economy will be completely until 2035, only slightly smaller with the Indian economy as the U.S. economy but larger than in Western Europe. By 2035, India is probably a larger growth driver than the six largest countries in the EU, although its impact is a little more than half of the United States.

India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and the third majoreconomic power within 10 years.

A large number of global multinational brands like Coca-Cola, Google, Micro-soft and Mercedes-Benz have been successful in India. Indian brands, which were in operation have already started on site in India in international competition. From New Delhi, New York brands have a global problem. Patterns of consumption in India has changed. Level of expenditure on private consumption has increased significantly. The expenditure of young consumers inIndia is regarded as the most powerful consumers. In the era of globalized environment, the country has become a major player in the socio-economic fields from only one Third World country. BRIC and other reports have projected India to be the third largest economy by 2020. Everything looks ominous for India.