Department of Economics, Mahatma Gandhi University, Nalgonda, AP. INDIA
After passing of a significant time, Indian economy remains on the same strata tliougfi it tias initiated various steps to bail out tine traditional or colonial social and economic evils such as poverty, unemployment and disparities among regions and dwellers. The measures like adoption of LPG model, accepting 1991 industrial policy the possible inflow of foreign reserves, deregulation of trade practices, invitation of SEZs and stepping bacf< from the direct enterprising or disinvestment, agreeing of GATT regulation and step forwarding by the guidance of the international agencies of IMF, World Banl<, SAFTA etc. have not given the predicted yield while they widened the variations in all fields. One of the common important features among all is export promotion and import substitution which furnishes the requirement of foreign reserves. Even though the physical growth rate touches 7.3 percent in 2008, the growth indicatrs of the real percapita income of an Indian referring $2900 are very low and very much distinct from those of the counter part countries like China. Still unemployment stands at 6.8 percent and 60 percent people were still dependent on traditional sector itself whereas the share of organized sector is representing 12% to the GDP is also very small and insignificant. All those warn us that the steps being taken are not appropriate to our circumstances or otherwise the vigorous exercise is required. Meanwhile the fiscal deficit has increased resulting in the debt burden of $163.8 billions. Even in case of foreign trade, India is not getting favourable balance of payments. However, with India having abundant land and population the adoptable and assigned or borrowed frame work does not give desirable dividends and there must be a vigorous exercise for reliable and practical measures to ensure desirable healthy and prosperous economy to India.
