Indian economy(international business) Essay Example | Topics and Well Written Essays - 500 words

Indian economy(international business) - Essay Example The value of the Indian Rupee against the U.S. Dollar is presently unfavorable. The economic boom of the last few years that had created new markets for the disposable wealth of the affluent middle class is also accompanied by high interest rates. Although the government’s decision to increase interest rates is done to balance the welfare of the poor with the economic boom, it is certainly expected to pull back the rate of growth. The growth rate of around eight percent, seen in the last four years, is bound to fall as a result. This prospect has made Indian business leaders a little uncomfortable. While large corporations can overcome this hurdle by borrowing from other countries, the small and medium scale businesses will undoubtedly suffer. Since the starting of the liberalization and deregulation phase, the country has largely come to depend on private corporations for infrastructure development. The successive governments during the last 15 years have been reluctant to initiate infrastructure projects – as raising taxes would result in unfavorable public opinion. But a country’s economic advancement is inevitable linked to its infrastructure and one cannot manifest without the other. This flaw had already started to expose some limitations. The meager budgetary allocation for highways and railroads had led to a substandard transportation facilities. Government investments in energy, water-treatment and sewage-treatment plants had been disproportionately low. Such a scenario will not lure trans-national companies to set up operations in India as it had done in the past. They may alternatively look east towards countries like China, Taiwan and Philippines that are more advanced in this regard. India’s English speaking elite have been the backbone behind the recent prosperity. It is to this section of the population that many jobs from the United States and Britain are outsourced. But the standard of education had failed to adapt to the