The economy of India had experienced plenty of changes since the beginning of the 1990s. Liberalization, Privatization, and Globalization or LPG, in short, is the new economic effort which is aimed at making the economy of the country not only globally competitive but the fastest booming one. The series of reforms taken over pertaining to the industrial sector, financial sector and trade as well aimed at making India’s economy more efficient.
Role of India in the Global Economy
Benefiting immensely from a blend of factors including the lowered global price of energy and rebound in domestic private consumption, there’s no denying India has become the fastest growing economy even the global economy has faded. But increasing concerns about the global outlook and global policy agenda needs to be studied in a cautious way so that policy implications can be evaluated for the growth leadership of India.
With the beginning of reforms for the liberalization of the economy of India, a new chapter has been born for India and her ever-rising population. And this period of economic transition has had an enormous impact on the overall economic growth of almost every sector of the Indian economy.
The fact cannot be held for denial that the world economy has witnessed considerable growth since WWII. The booming market countries, developing nations, and economies in transition make for over one-half of global GDP which is being evaluated in terms of PPP (an acronym for purchasing power parity), holding most of the currency reserves of the world.
India is in the continuous process of reorganizing her economy aspiring to lift herself from the current forsaken position she holds in the world. Thus, the need to accelerate her economic development has become important than before. In fact, India has started out a great plan to simulate the success of her neighboring countries to the east.