India`s Economic Transformation

India`sEconomic TransformationNameInstitution

India`sEconomic Transformation” Noauthor n.d.

Thearticle evaluates the state of India’s economic transformation overthe years. According to the article, from 1947 (when India gotindependence) India adopted a mixed economy that was highlycharacterized by centralized planning, state-owned enterprises, andthere were many subsidies. However, following the failure of thistype of economic structure, the government initiated measures totransform the economic to a capitalism one to boost the shrunkeconomy where only 2.3% of the population had an income of more than$2, 484. From 1991, the government started to relax regulations onforeign investment, taxation, and other policies that hindered theprivate sector growth. Privatization measures led to the growth offoreign investment, economic performance, and industrial development. However, the article posits that India economic transformation ishampered by a lack of political goodwill and social opposition, wheresome of the rules and policies that support socialism are stillevident with state-owned entities accounting for 38% of the nationaloutput (India’s economic transformation, n.d.).

ThatIndian’s economy has changed a great deal from 1947 is not asecret. The expansion of the India’s economy through economicstimulus measures has made India’s economic seventh largest in theworld in terms of nominal GPD (Siddiqui,2015). However, most of the sectors such as steel industries,telecommunication, and health are heavily inclined to socialism. This, therefore, makes the observation by the article valid, thateven though India’s economy has undergone a period of hightransformation much needs to be done to realize its full potential. There is a high need for political transformation and socialenlightenment, which will ensure that some issues such as labor laws,privatization procedures, and investment, limitations are candidlyaddressed to ensure jobs creation and maintenance of economy thatwill support country`s more than 950 million people.

Reference

NoAuthor. India’s economic transformation. CountryFocus. n.d.

Siddiqui,K. (2015). India`s economy: promise and challenge. Economicreview,&nbsp33(2),2-6.