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Prof. Irma Glicman Adelman, an Irish Economist working in California University at Berkely, in her research work on `Development Over Two Centuries`, which is published in the Journal of Evolutionary Economics, 1995, has identified that India, along with China, would be one of the largest economies in this 21st Century. She has stated that the period 1700-1820 is the period of Netherlands, the period 1820-1890 is the period of England, the period 1890-2000 is the period of America and this 21st Century is the century of China and India. World Bank has also identified India as one of the leading players of this century after China. India will be third largest economy after USA and China. India will challenge the Global Economic Order in the next 15 years. India will overtake Italian economy in 2015, England economy in 2020, Japan economy in 2025 and USA economy in 2050 (China will overtake Japan economy in 2016 and USA economy in 2027). India has the following advantages compared with other economies. India is 4th largest GDP in the world in terms of Purchasing Power. India is third fastest growing economy in the world after China and Vietnam. Service sector contributes around 57 per cent of GDP. The share of agriculture is around 17 per cent and Manufacture is 16 per cent in 2005-06. This is a character of a developed country. Expected GDP growth rate is 10 per cent shortly (It has come down from 9.2 per cent in 2006-07 to 6.2 per cent during 2008-09 due to recession. It is only a temporary phenomenon). Inflation rate has come down to 1.5 per cent now (Food inflation surges further to 17.47 per cent). India has $284 billion as Foreign Exchange Reserve as on today. India had just $1 billion as Foreign Exchange Reserve when it opened its economy in the year 1991. Over the last decade, central banks around the world have quadrupled the size of their foreign exchange reserves. The case of China, which multiplied its own stock by a factor of ten, is often mentioned as an example of these excesses, but China is not alone. Total reserves of sub-Sahara African countries have also risen by a factor of ten. The only exceptions to this worldwide phenomenon are the developed countries and a few odd developing countries. It might seem surprising that developing countries, which badly need every penny that they can save to improve their production capacities, accumulate such a stockpile of low-yield assets (Charless Wyplosz, 2007).
ISBN9788183873710
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Pages : 322
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