India, while it is still considered a place with vast amount of poverty, has an economy that is drastically growing in size and its future among the most powerful world economies is gradually becoming more and more likely. In relation to the United States, India is where many outsourced jobs are located, mainly because of the economic benefits for larger corporations; further emphasizing India’s importance to markets around the world. According to the Central Statistical Organization (CSO), “the Indian economy is projected to expand by 8.6% to a record $1.73 trillion.” This is a huge breakthrough for the Indian economy, as the GNP of the projected economic levels would bring the country’s per capita income to about $1,200, “effectively making it a middle-income country.” While the current economic state of India is not yet at the required levels, they are no doubt on the right path. As stated in the article, the benefits of having a growing economy like India’s also come with various disadvantages. For example, while the economic growth will allow India to stand among other economic world powers and increase standard of living, the country will find it harder to obtain certain loans “from multilateral institutions for social sector projects.” While India certainly seems to be headed in the right direction for economic advancements, some claim that rising inflation could end up slowing growth. While India’s future is not set in stone, there exists a general feeling that over the next few years that it will show expansion.
Source:
http://www.livemint.com/2011/02/08021623/India-now-on-middle-income-pat.html?atype=tp
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