{"id":302732,"date":"2024-06-28T19:33:19","date_gmt":"2024-06-28T14:03:19","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=302732"},"modified":"2024-06-28T19:33:19","modified_gmt":"2024-06-28T14:03:19","slug":"india-needs-to-develop-a-unique-economic-strategy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-needs-to-develop-a-unique-economic-strategy\/","title":{"rendered":"India needs to develop a unique economic strategy"},"content":{"rendered":"

Source<\/strong>: The post India needs to develop a unique economic strategy has been created, based on the article \u201cA new agenda for great power status<\/strong>\u201d published in \u201cBusiness standard<\/strong>\u201d on 28th June 2024<\/p>\n

UPSC Syllabus Topic<\/strong>: GS Paper 3<\/strong>– Economy<\/p>\n

Context<\/strong>: The article discusses the need for India to develop a unique economic strategy that is sustainable and not resource-heavy like China’s. It emphasizes joining global trade groups, reducing tariffs, and supporting the informal sector to boost manufacturing and overall economic growth.<\/p>\n

For detailed information on Indian Development Model<\/strong> read Article 1<\/a>, Article 2<\/a><\/p>\n

What is India’s external economic footprint?<\/strong><\/h2>\n
    \n
  1. Currently, India accounts for 1.8 per cent of world exports and is ranked 18th.<\/li>\n
  2. It accounts for 2.8 per cent of global imports and ranks ninth worldwide.<\/li>\n<\/ol>\n

    Why should India not follow the China growth model?<\/strong><\/h2>\n
      \n
    1. Resource and Energy Demand<\/strong>: China’s growth relied heavily on extensive resource and energy consumption. This model is unsustainable for India, given global resource limits and the world’s inability to support another such heavy consumer.<\/li>\n<\/ol>\n

      2 Ecological Sustainability<\/strong>: The Chinese model is incompatible with the needs for ecological sustainability and addressing climate change. India requires a growth strategy that significantly reduces environmental impact.<\/p>\n

        \n
      1. Greenhouse Gas Emissions<\/strong>: China may have peaked in terms of its greenhouse gas emissions. In contrast, India’s emissions are set to increase, which will lead to international pressure to curb them.<\/li>\n<\/ol>\n

        How can India enhance its global economic influence?<\/strong><\/h2>\n
          \n
        1. Expand Foreign Trade<\/strong>: India aims to become the third-largest trading power by expanding its foreign trade, aligning with its current status as the fifth-largest economy.<\/li>\n
        2. Join Major Trade Groups<\/strong>: Engaging with major trade groups like the Regional Comprehensive Economic Partnership (RCEP) and applying to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will integrate India more deeply into global trade dynamics.<\/li>\n
        3. Reduce Tariffs<\/strong>: Lowering high custom tariffs, which have increased since 2014, will facilitate India’s participation in global and regional supply chains, essential for being a global trading power.<\/li>\n
        4. Support the Informal Sector<\/strong>: Simplify GST procedures and reconsider the Production-Linked Incentive scheme to bolster small and medium enterprises, which are vital for employment and economic resilience.<\/li>\n<\/ol>\n

          Question for practice:<\/strong><\/p>\n

          Discuss India’s strategy to enhance its global economic influence and why it should diverge from China’s resource-heavy growth model.<\/p>\n","protected":false},"excerpt":{"rendered":"

          Source: The post India needs to develop a unique economic strategy has been created, based on the article \u201cA new agenda for great power status\u201d published in \u201cBusiness standard\u201d on 28th June 2024 UPSC Syllabus Topic: GS Paper 3– Economy Context: The article discusses the need for India to develop a unique economic strategy that… Continue reading India needs to develop a unique economic strategy<\/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-302732","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\/302732","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=302732"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/302732\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=302732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=302732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=302732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}