Research paper on the economic performance of India

Though it is safe to say that the majority of the population dwells on agriculture, India's economy depends heavily on service provision as most of its output suggests. Information technology services including business outsourcing and software operations are also exported thanks to a wide English-speaking number of people though income per capita still remains under the required average terms. ("India Economy - Overview - Economy") In the recent past, India’s previous autarkic policies have been found to still exist in a small magnitude though the country is now well placed to grow and develop in the shape of an open market economy. A steady economic growth averaging 7% per year was disrupted in 2011 due to various issues such as rising interest rates that reduced investments and inflation in general.

A combination of better economic conditions in the west and India’s macroeconomic imbalances brought about the shift of capital away from the country and as a result, local currency depreciated. ) Production output performance analysis Real GDP The gross domestic product is the ultimate worth of goods and services whose production is based within the boundaries of a particular nation, during a defined time period which in most cases is basically a year. The growth trend regarding GDP is an important factor that helps indicate whether a country is performing well economically. An example is where a French-owned company has a factory in the United Kingdom whereby the GDP of the United Kingdom would take into account the output of the factory in its analysis.

GDP does not also include unpaid working activities including volunteering and also illegal activities since they are difficult to value in an accurate way. Adjustments have to be made on the nominal value of the GDP in order to attain the value of the real GDP in the process of taking into account changes in prices. 1% and this indicates a stable growth rate over the years. This growth has been fueled by a stable growth rate in the key economic sectors such as agriculture, industry and services. The service sector which is more stable than the other two has performed best followed by industry. ("This Is The Story Of India's GDP Growth") Growth in agriculture has been less as compared to the other sectors though has maintained a good level of stability.

In the long run, it is safe to conclude that the growth in India has been supported by a corresponding growth in exported products and investment injection in the country. 5, is equal to 55% of the worldwide average value. The average GDP per capita value through the years was USD$1562. 61 in the process of reaching an all-time low of USD$132 in the year 1962 and a record high of USD% 6894. 5 in 2016. With a large population of more than a billion people, China has the second largest economy worldwide. ("Role Of The Government Towards The Development Of The Country") Labor Market Analysis Types of unemployment in India 1. Seasonal unemployment Employed people mainly refer to those that are fully employed throughout a given year but this is not the case for some in India.

Though agricultural activities are performed throughout a year, there is seasonal unemployment in agriculture. In times of harvest, transplantation, weeding and sowing, many people are required to perform these jobs though when these periods, are over, some like marginal farmers and landless laborers remain unemployed. Voluntary unemployment This type of unemployment is a matter of choice for people involved and refers to those that are not willing to perform job duties at the current wage rates. This is brought about by people failing to find other employment opportunities and as a result prefer to work along with others in a given task. Unemployment trend in India The average unemployment rate in India was an average of 4. 11% attained between 1983 and 2017. A notable record low unemployment rate of 3.

41% was attained in 2014. Causes of inflation in India Inflation tendencies are mainly brought about by an increase or decrease in the aggregate demand or supply respectively, or both factors. In India, inflation has been caused by a number of factors including an increase in public expenses especially on activities that are non-developmental such as law and defence. The Indian government has also resulted to deficit financing at times in order to meet the required developmental expenditure. This, unfortunately, turns out to bring more of an inflation situation than economically assist the government. The increase in prices of food articles during times when there is a scarcity of food grains accelerates even the general prices of commodities which creates an inflationary situation.