India
...with various social issues, such as dialect barriers, gender inequality, levels of poverty rates, and trouble with severely polluted areas to name a few. India has also faced some political problems, such as the border conflicts with Pakistan, as well as clashes between Hindu nationalists and secular political groups. However, internationally, it is currently being supported by the world’s major powers, like the US and Japan. This is due to India’s growing economy, stable government and its secure political relationships with the rest of the world. As globally competitive IT firms and various services are being praised upon, the country’s future is looking optimistic as it is being seen as a strategically as well as thriving partner for international trade.
India is believed to be the world’s second fastest growing economy with an average growth of 8 percent per year starting 2004. India’s comparative advantage lies in its skilled labour force in IT at relatively low costs. The growth of the economy of India in general is closely behind the US and the Republic of China. However, while there is a lot of optimism around the growth itself, there is also a calculated fear of major inflation in years to come.
Table of Contents
EXECUTIVE SUMMARY 2
TABLE OF CONTENTS 3
1. COUNTRY BACKGROUND 4
2. REASON FOR SELECTING INDIA 4
3. ENVIRONMENT – PRESENT AND MAIN FUTURE CONCERNS 5
3. 1. POLITICAL 5
3. 2. ECONOMIC 5
3. 2. 1. Comprehensive Economic Cooperation Agreement (CECA) 6
3. 2. 2. Framework Agreement 6
3. 2. 3. Regional Agreement 6
3. 3. SOCIAL 7
3. 4. TECHNOLOGICAL 8
4. BALANCE OF PAYMENT 9
4. 1. HISTORY 9
4. 2. MERCHANDISE TRADE 10
4. 3. TRADE DEFICIT 11
4. 4. INVISIBLES 11
5. TRADE BALANCE 12
5. 1. HISTORY 12
5. 2. CURRENT ACCOUNT 13
5. 3. CAPITAL ACCOUNT 14
5. 4. TRADE AGREEMENTS 15
6. EXCHANGE RATE POLICY 21
6. 1. HISTORY OF RUPEE 21...
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