The following conditions must be satisfied for attaining technological advancement in a country:
Factor productivity in the Indian textile industry Source: Annual ReportMinistry of Textiles Note: Impact on the employment rate In theory, one of the positive impacts of FDI in the host country is the increase in domestic employment Craigwell, The rate of employment is defined as the employment to population ratio.
Figure 6 shows the clear increasing trend of employment rate in the service sector. Employment Rate in the service sector in India Source: Foreign investors started investing in this sector especially in the IT industries in return for services of the best quality.
However, the service sector is only one of the contributing sectors of the economy and absorbs only skilled workers. It implies that semi-skilled or unskilled workers lag behind in terms of finding employment. This explains the reducing trend in figure 5.
Impact on the exports of India The relationship between FDI and exports is established through the role of FDI in bringing foreign capital, increasing factor productivity, improving managerial skills and providing access to the world market. Consequently, FDI is considered one of the important determinants in the theory of export-led growth.
The below figure shows the trend of exports of goods and services from India in the post-reform period alongside FDI inflow. World Bank It is an increasing trend for exports which clearly indicates that exports from India have increased considerably since A moderate rise in the inflation rate, in the long run, is considered good for the economy as it indicates an increase in the level of demand.
The below figure depicts a fluctuating trend in the inflation rate in the post-reform years in India. But the rate of inflation in recent years is much less than that in the pre period except during the years of global recession. The underlying reason for this is that the Indian Government has been able to control the inflation rate by adopting necessary fiscal measures of taxation and Government expenditure.
However, a long-run relationship between the two variables was found to exist through Johansen Cointegration test. It implies that FDI has not caused the price level to rise. Rather the impact of FDI on inflation is only through its effect on output growth in the long run.
World Bank Impact on the total factor productivity of India FDI increases factor productivity and productive capacity by adding to the capital stock, technology transfer, improving managerial skills through technical know-how and enhancing labour productivity through advanced technological changes Sultan, Total factor productivity in India shows an increasing trend alongside FDI in the post-reform years.
A previous article on the impact of FDI inflows on total factor productivity in India also established a positive and significant impact of FDI on TFP through time series regression analysis.
In the endogenous growth models, FDI causes growth via increasing returns through technology spillover and technology transfer. It reveals that the trend of FDI had fluctuations due to the global financial recession in In absolute values, however, FDI has been increasing after in comparison to the first decade of liberalization.
This is characterized by a slump in due to the recession and recovery thereafter. But the trend is more stable than that of FDI and does not exhibit an increasing pattern.
One of the reasons for this is that the inflow of FDI has generated an increase in employment in only some industrial sectors of the economy. India enjoys relative advantages in attracting FDI compared to other countries due to its cheap labor resulting from low inflation rate and geographical proximity to OECD countries.
On one hand, the high growth rate of GDP in the post-reform period raised the return from investment.Essay about political economy major tulane i like to dance essay update sport in life essay water 10 essay writing zulu letter for friends essay reflective about lifestyle essay computer technology major research paper presentation powerpoint template.
Stress . Essay on the Economy of India! The Indian economy is diverse and embraces a huge area including agriculture, mining, textile industry, manufacturer and a vast area of other services.
There is an enormous shift from what the economy used to be in the distant past. Indian economy is the third largest. Apr 29, · Walden: Economy Essay.
April 29, by dilloncronin. 1. In “Economy,” Thoreau speaks of his will to go against the grain of humanity and challenge its customs that the average human obeys without question; but it is the people who do challenge those customs that change our culture.
A philosopher, naturalist, and social reformer, Henry David Thoreau’s life and legacy compelled others to resist injustice and stand for human rights across the world. Thoreau was born on July 12, , in Concord, Massachusetts. Foreign Direct Investment (FDI) is a key driver for the growth in the Indian economy in the context of other developing tranceformingnlp.com inflow is the investment made by enterprises through joint ventures (JV) or mergers & acquisitions (M&A), to carry out business activities in host tranceformingnlp.comages of FDI inflow include: building physical capital.
Thoreau decided that he was going to live “deliberately” in the woods for over two years and live off of a limited economy and isolate himself from society in order to gain a more objective understanding of it.