The Economic Development Of China - 1130 Words

Introduction: In 1991, when Prime Minister Narasimha Rao agreed to take a loan from the International Monetary Fund to stave off a financial crisis we witnessed the low-point of the Indian economy. At that time, the country had dwindling foreign exchange reserves and was months away from defaulting on its debts. As part of the I.M.F. package, the government passed reforms such as devaluing the rupee, encouraging private sector competition, and deregulating the economy after 40 years of central planning. By opting for market-oriented reforms in 1991, India’s GDP has grown at a rate of 6.6% annually over the past 20 years. As a rapidly emerging economy and a member of the BRICS, we must continue to push our strategy of export led†¦show more content†¦Foreign trade can expedite the growth of an economy through the promotion of exports and development of national industries. As exports grow, India will be able to amass foreign exchange reserves to avoid currency and debt crises simil ar to those that struck India in 1991. Implementation and benefits: India is a country that is abundant in labor. Export-led industrialization can harness this enormous workforce and help to eradicate poverty. Furthermore, the government should subsidize nascent industries that have the potential to become major exporters. †¢ We must modernize the legal code, for us to have less stringent labor laws, which have limited labor force participation and slowed industrialization. Streamline the process of starting a business by reducing the bureaucracy and make laws more transparent to encourage private investment. †¢ Attract foreign direct investment to India for export-led industrialization to further India’s growth by making it easier to open, run, and grow a business. Providing a gateway for multinational companies to enter India will draw foreign capital into the country rather than scare off multinational firms with a difficult and burdensome regulatory environment. †¢ Encourage domestic companies to partner with multinational firms we can acquire foreign technology and knowledge, which will help boost the efficiency of our industries. †¢ Change our trade policies to reduce tariffs,