Globalization and Indian Economy

Abstract

The integration with the global economy has provided wider space for India across the globe. At the same time, being interwoven with the global economy, interdependencies of Indian economy with the global economy has increased. The effects of these interdependencies precipitated well in the recent economic Crisis of 2008-09. The slump in demand and liquidity crunch of the US and the EU economies led to the slowing down of growth in India but the impact was not too harsh as it remained in western countries. This highlights the importance of sustainable economic growth of India through implementing policies and factors that make India competitive in the global economy. The liberal economic policies of India unleashed in 1990s have resulted in Iwo decades of remarkable economic growth. In addition to the impressive economic growth, presence of abundant natural resources, cost-effective manpower, large number of English speaking youth indicate the increasing importance of the role to be played by India in global economy.