India – poverty or one of the fastest growing economies in the world. Alexander Sivtsov
When mentioning India, the memories of Indian cinema comes to one mind. If you dig a little deeper into the economy, of course, many will say that the country is poor and people have to survive. In India a significant number of people live below the poverty line and do not even have a roof over their heads. Until 1947, India was a colony of Great Britain, but this was for the benefit of the Indians. The fact is that the main languages in India are Hindi and English, which makes it easier for foreign companies to conduct business in the country. India is a member of the UN, G20, WTO, etc.
In terms of population, 1.3 billion, India is second only to China, but the development of the country did not follow the Chinese way. Western countries did not use the labor force in the country to transfer production capacities to India, and in our time this can be a plus, rather than vice versa. The fact is that with the development of the world economy, from the same China, foreign companies are beginning to return production, which in the future threatens to increase unemployment in China. In India, everything goes its own way and the scenario of the return of production is not expected.
In India, the average literacy rate is 64.8%, because 70% of the population lives in rural areas. It should be noted that the low level of literacy did not prevent India from integrating into the global economy. The knowledge of English by the Indians made India the dominant country in the offshore outsourcing market. American and European companies entrust Indian firms with various types of services that allow remote management. Outsourcing services annually exceed $ 100.00 billion, providing a fifth of India’s exports.
India: GDP Growth
According to the latest data, India’s GDP growth at an annual rate of 7.2%, which exceeds the growth in China’s GDP at 6.8%. It is worth noting that in 2016, India’s GDP growth reached 9.2%.
Fig. 1: Dynamics of changes in GDP growth in annual terms from 2015 to 2018
Unemployment rate in India
Knowing that a significant part of the country’s population lives below the poverty line, you can immediately think that unemployment in the country is 20% -30%, but this is not so. According to the latest data, the unemployment rate in India is 3.52%, and even in 2008 the unemployment rate was 4.12%. The unemployment figures are simply amazing, with 70% of the population living in rural areas.
Fig. 2. Dynamics of changes in the unemployment rate from 2008 to 2017
India: Inflation rate
According to extreme data, the inflation rate in India was 4.28%, which only slightly exceeds the target range of 2% -3%. It is worth noting that in 2017, inflation fell to the level of 1.54%, and by the end of the year it was 5.21%. These changes in inflation indicators are associated with a change in energy prices and a steady increase in demand for them.
Fig. 3. Dynamics of changes in the level of inflation from April 2017 to March 2018
Drawing conclusions on this article, it is worth noting that India can be considered a potential superpower, which even has nuclear weapons. Another interesting fact is that India is the third largest in the world in terms of the number of billionaires. High growth rates of the Indian economy play a significant role in the world economy. As a result of the growth of economic development with a huge population, the demand for energy resources is growing every day, supporting their price in the world market.