Send email to admin eh. Moving along an income growth trajectory through expansion of manufacturing is hardly unique. Indeed Western Europe, Canada, Australia and the United States all attained high levels of income per capita by shifting from agrarian-based production to manufacturing and technologically sophisticated service sector activity.
Let us make in-depth study of the economic and non-economic factors determining business environment in India.
Business environment is the sole determinant of economic development of a country. In order to attain higher level of economic development, the business environment in the country should be very much conducive towards development.
The path of economic development in an under-developed country like India is full of hurdles and impediments. Attaining higher level of economic development is a function of level of technology. Economic development is thus a process of raising the rate of capital formation, i.
Moreover, the task of economic development is influenced by a number of factors such as economic, political, social, technological, natural, administrative etc.
Regarding the determinants of economic growth Prof. The following are some of the economic and non-economic factors determining the pace of economic development in a country like India.
Economic environment is working as an important determinant of economic development of a country. Economic environment can determine the pace of economic development as well as the rate of growth of the economy.
This economic environment is influenced by the economic factors like— population and manpower resources, natural resources and its utilization, capital formation and accumulation, capital output ratio, occupational structure, external resources, extent of the market, investing pattern, technological advancement, development planning, infrastructural facilities, suitable industrial relations etc.
Population and Manpower Resources: Population is considered as an important determinant of economic growth.
In this respect population is working both as a stimulant and hurdles to economic growth. Firstly, population provides labour and entrepreneurship as an important factor service. Natural resources of the country can be properly exploited with manpower resources.
With proper human capital formation, increasing mobility and division of labour, manpower resources can provide useful support to economic development. On the other hand, higher rate of growth of population increases demand for goods and services as a means of consumption leading to increasing consumption requirements, lesser balance for investment and export, lesser capital formation, adverse balance of trade, increasing demand for social and economic infrastructural facilities and higher unemployment problem.
Accordingly, higher rate of population growth can put serious hurdles on the path of economic development. Moreover, growth of population at a higher rate usually eats up all the benefits of economic development leading to a slow growth of per capita income as it is seen in case of India.
But it has also been argued by some modern economists that with the growing momentum of economic development, standard of living of the general masses increases which would ultimately create a better environment for the control of population growth.
Moreover, Easterlin argued that population pressure may favourably affect individual motivation and this may again lead to changes in production techniques.China And India As Part Of Global Economic Shift. Globalisation presents us with threats and opportunities simultaneously, and the growth of China and India is a significant factor in this.
Understanding China's Growth: Past, Present, and Future by Xiaodong Zhu. Published in volume 26, issue 4, pages of Journal of Economic Perspectives, Fall , Abstract: The pace and scale of China's economic transformation have no historical precedent.
In , China was one of the poorest c. They tried hard to stop the industrial growth of India, desiring to keep her as a producer of raw materials only and a consumer of British manufactured goods.
But the industrial revolution had to spread to India, even though it came slowly because of the obstruction offered by the Government. Manufacturing the future: The next era of global growth and innovation, a major report from the McKinsey Global Institute, presents a clear view of how manufacturing contributes to the global economy today and how it will probably evolve over the coming regardbouddhiste.com findings include the following points: Manufacturing's role is changing.
To predict China's path, observers should look to the example of South Korea under Park Chung-hee.
Ultimately, sustaining economic growth will push Xi Jinping and the CCP toward political liberalization. In contrast to China, whose population is projected to decline by 28 million between and , India’s population is expected to increase by million people.
5. Due to its rapid population growth, India is expected to exceed China’s population by , just seven years from now.