Economy-The reason for development

An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location.But when we talk about our own country,India it has been estimated by the authorities that it is the tenth largest economy of the world
and third largest economy by purchasing power parity(PPP).

But the truth and condition of the country does not say the above text and still lot of work has to be done in various sector of the economy.All key parameters like GDP growth rate, Sensex, inflation rate, fiscal deficit, industrial productivity data and functioning of rupee indicated the slowing down of the economy.The most important factor in the slowdown of Indian economy is the poor infrastructure, low growth in agriculture production and industrial activities. After the adoption of LPG principle in 1991 India has opened its economy for global prospects which mainly involves liberal and free market policies. This opening has brought various pros and cons with itself as earlier our economy is tightly regulated by govt. policies and principles. The major victim is the agricultural sector which claims ample amount of the generated economy in the country.


Politicians involved in making the framework for Indian economy are not ready to understand the seriousness of the situation due to their vote bank politics Still the various policies in this economy are formed on the influence of certain groups which have political ground. India a nation with vast manpower, sufficient amount of natural resources, suitable natural location for global trade has good amount of potential which can make it a superpower.

So, to overcome and maintain the balance of the economy large amount of work has to be done on other sectors and government must take the right decisions.There are certain other aspects that it can adopt to reduce its dependence on global economy as increasing its research & development share , establishing good relations with its neighbor so that it can reduce its heavy expenditure on defence sectors, planning economic- centric schemes which try to maximize the capital part along with social responsibility.

Politicians have to understand the fact that time has come when they have to realize the importance of the moment and resolve their differences on economic issue and bring out a plan that can boost the factors responsible for growth of domestic industries. These policies must be freed from the local influences and have a global outlook.

http://en.wikipedia.org/wiki/Economy_of_India
http://www.newindianexpress.com/states/andhra_pradesh/Economy-Sluggish-for-Lack-of-Vision-AB-GM/2014/07/11/article2325078.ece