{"id":253075,"date":"2023-07-22T21:20:38","date_gmt":"2023-07-22T15:50:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=253075"},"modified":"2023-08-31T11:02:47","modified_gmt":"2023-08-31T05:32:47","slug":"missing-the-real-achievements","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/missing-the-real-achievements\/","title":{"rendered":"Missing the real achievements"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cMissing the real achievements<\/strong>\u201d published in Business Standard <\/strong>on\u00a022nd<\/sup> July 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013 Growth & Development<\/strong><\/p>\n

Relevance: <\/strong>About India\u2019s economic scenario and challenges with it<\/strong><\/p>\n

News:<\/strong> The article explains India\u2019s macroeconomic achievements and challenges associated with it.<\/p>\n

What are the macroeconomic achievements made by India? <\/strong><\/h2>\n

Wholesale and consumer price inflation rates in India have fallen significantly.<\/p>\n

The WPI rate has decreased from an average<\/strong> of 9% in the 1970s to around 4% in the last decade. The CPI has also decreased, going from<\/strong> 7.5 percent to less than 6 percent in the last decade.<\/p>\n

From 1992 to 2002,<\/strong> the overall balance of payments surplus was $52 billion. It has risen to $354 billion in the most recent decade (2012-22). This has resulted in the elimination of dollar scarcity.<\/strong><\/p>\n

Moreover, the reliance on aid and foreign borrowings has also decreased substantially.<\/p>\n

Although the merchandise trade deficit has grown in comparison to earlier decades, the expanding services export surplus has mostly neutralised it.<\/strong><\/p>\n

Further, growing foreign investment in the last three decades has also contributed to the positive economic shift. As a result of this, India’s currency has become more stable. <\/strong><\/p>\n

Although the rupee has continued to depreciate against the dollar, the rate of decline has slowed over time.<\/p>\n

However, despite these achievements, India still faces challenges in becoming the fastest-growing large economy.<\/p>\n

What are the challenges with India in becoming the fastest-growing economy?<\/strong><\/h2>\n

First,<\/strong> in 2022, Saudi Arabia and Vietnam surpassed India’s growth rate, and the Philippines outperformed in the first quarter of 2023<\/strong>. India is likewise not a beneficiary of the “China Plus One” scenario. It’s Vietnam.<\/p>\n

Second,<\/strong> India is at a disadvantage compared to nations like Thailand, Malaysia, and Indonesia because<\/strong> of its lack of economic integration with East Asian economies and its exclusion from the Regional Comprehensive Economic Partnership (RCEP)<\/strong><\/a>.<\/strong><\/p>\n

Third,<\/strong> Vietnam is currently on par with China in terms of exports to the West when it comes to supplying apparel to the US.<\/p>\n

Hence, India still belongs to the group of developing players despite having a sizable market.<\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

The structural improvements experienced in India over the decades have resulted in a more stable economy and currency, contributing to political stability as well.<\/p>\n

However, despite this, India has not achieved a rapid-growth trajectory comparable to that of several East Asian economies since the mid-twentieth century. Therefore, there is a need for introspection to address this disparity.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cMissing the real achievements\u201d published in Business Standard on\u00a022nd July 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development Relevance: About India\u2019s economic scenario and challenges with it News: The article explains India\u2019s macroeconomic achievements and challenges associated with it. What are the macroeconomic achievements made… Continue reading Missing the real achievements<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,8184],"class_list":["post-253075","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=253075"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253075\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=253075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=253075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=253075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}