03-08-2012, 02:57 PM
Indian foreign Trade policy and strategies for increasing export of Pharmaceutical product
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Indian Economy Introduction
India’s economic growth has accelerated in recent years, and its share of world trade has expanded. These are welcome developments for the country and, given India’s large share of the world’s population, for the global economy. Yet, despite these recent positive trends,
India faces daunting challenges and policy decisions if it is to maintain high economic growth rates, employ its burgeoning population, and raise incomes across the full range of households, skill levels, sectors, and regions. India remains the largest reservoir of poverty in the world. Its recent high growth has been driven mainly by its modern services sector, which accounts for only a small proportion of overall employment and household incomes. Its agricultural sector is in a deep crisis, whether measured by slow growth rates, persistent rural poverty, or widespread farmer suicides.
Slowdown in economic growth in 2011-12
Advance estimates released by the Central Statistics Office (CSO) place GDP growth for 2011-12 at 6.9%, only marginally higher than the 6.7% growth seen in 2008-09, the year of the global economic crisis. Worst affected is clearly investment, which underwent a mild 0.2% contraction in April-December 2011 in year-on-year terms, relative to a growth of 8.9% in the same months of 2010-11, reflecting a dampening of business sentiments and the pace of execution of various projects. Uncertainty about demand conditions given the global outlook and its likely contagion effect; regulatory issues including environmental clearances and land acquisition; as well as sector specific factors like availability of coal and iron ore have impacted investments. Other contributory factors included an increase in interest rates to dampen high inflation and a slowdown in decision-making in various crucial areas like allocation of coal blocks. At the same time, while fiscal policy remains expansionary, higher outgo toward items of non-plan revenue expenditure such as subsidies, limited the fiscal space available for boosting infrastructure spending by the public sector.
Key Points: India’s Economic Outlook For 2011-2012
Economy is expected to develop at 8.2 percent in 2011-12. Agriculture grew at 6.6 percent in 2010-11. Likely to nurture at 3.0 percent in 2011-12. Industry grew at 7.9 percent in 2010-11. Likely to nurture at 7.1 percent in 2011-12. Services grew at 9.4 percent in 2009-10. Likely to nurture at 10.0 percent in 2011-12. The expected growth rate of 8.2 percent, although inferior than the earlier year, must be treated as high and respectable, given the current world situation. The global economic and financial situation is not likely to improve according to the outlook To keep the economy growing at 9 percent it is significant to boost fixed investment rates. Investment rates are expected at 36.4 percent in 2010-11 and 36.7 percent in 2011-12. Domestic savings rates as a ratio of GDP are likely at 33.8 percent in 2010-11 and 34.0 percent in 2011-12. The 2011 monsoon is anticipated to be in the range of 90 percent to 96 percent of Long Period Average. As a result, farm sector output is expected to grow at 3 percent. The revised series (2004/05) for Index of Industrial Production shows an output growth pattern that is fairly different from what the old series (1993/94) had indicated.
"India's Foreign Policy"
The article below was presented at the India Forum, organized by the Fundacion Marcelino Botin in Madrid in November 2007.
In March 2005, Secretary of State Condoleezza Rice announced that, “international institutions are going to have to start to accommodate [India] in some way.” From an Indian perspective he is years late. But it is an objective that the developed world is only now beginning to affirm and towards which it is still only taking hesitant steps.
While local politics in India mandate an internal focus, recent Indian administrations have understood that it will require engagement with the international community to achieve their domestic objectives. In words, India still focuses inwardly: in actions, however, India is beginning to feel its way outside its borders. In recent years, India’s military, diplomatic and economic energies have expanded far beyond Nehru’s Non-Aligned position. But what does that mean for India, its region, and to the United States?
What Drives India’s Foreign Policy Today?
India’s foreign policy is driven by five principal considerations, through which lie its relationships with the United States and China.
Conventional Security
As is necessary for any nation, India’s principal priority is ensuring conventional security for its country and its people. In recent years, India has built up a strong and capable Army, Navy and Air Force: the third, forth and seventh largest in the world respectively. India’s military is not only large, but effective, well trained and increasingly well equipped; their Air Force has been known to best that of the United States in combat air exercises.
Democracy and Indian foreign policy
Immanuel Kant’s idea that democracies don’t fight wars with each other holds a lot of traction in contemporary international relations. Democratic peace theory, as this proposition is widely known, appears to enjoy natural sciences-like empirical validity since the proponents of the theory claim that there is hardly an instance in modern history where democracies have gone to war with each other. Though criticism of the democratic peace abounds in international relations literature especially regarding the definitional aspects of the concept of democracy, the mechanisms which the theory invokes in supporting its underlying logic and the ever present n+1 problem ↑ with inductive theories, the fact that it has become one of the most important alternative explanations in defining war and peace –the central puzzle of international politics – is beyond doubt. There is another important facet of the democratic peace thesis. Unlike many other concepts and theories in international relations, the idea that democracies maintain peaceful relations among themselves has been accepted verbatim in actual policy decision making by many democratic states around the world, particularly the Western bloc of liberal democracies.