Indian economy(international business) Essay Example | Topics and Well Written Essays - 500 words

Indian economy(international business) - Essay ExampleThe value of the Indian Rupee against the U.S. Dollar is presently unfavorable. The economic boom of the sustain few years that had created new markets for the disposable wealth of the affluent middle class is also tended to(p) by high interest rates. Although the governments decision to increase interest rates is through with(p) to balance the welfare of the poor with the economic boom, it is certainly expected to pull back the rate of development. The growth rate of around eight percent, seen in the last four years, is bound to fall as a result. This prospect has made Indian business leaders a little uncomfortable. While large corporations potful overcome this hurdle by borrowing from other countries, the small and medium scale businesses will doubtless suffer.Since the starting of the liberalization and deregulation phase, the country has largely come to depend on private corporations for understructure development. The s uccessive governments during the last 15 years have been reluctant to initiate infrastructure projects as aggrandizement taxes would result in unfavorable public opinion. But a countrys economic development is inevitable linked to its infrastructure and one cannot manifest without the other. This flaw had already started to expose some limitations. The insufficient budgetary allocation for highways and railroads had led to a substandard transportation facilities. Government investments in energy, water-treatment and sewage-treatment plants had been disproportionately low. much(prenominal) a scenario will not lure trans-national companies to set up operations in India as it had do in the past. They may alternatively look east towards countries like China, Taiwan and Philippines that are more advance(a) in this regard.Indias English speaking elite have been the backbone behind the recent prosperity. It is to this segmentation of the population that many jobs from the United St ates and Britain are outsourced. But the standard of education had failed to adapt to the