Country Financial Market Harvard Case Solution & Analysis

Country Financial Market

Selected Country: India

History of India

India came into existence on 15th Aug 1947. India is formally recognized as Republic of India and it is located in South Asia. As per the statistics, India is the seventh largest country by area. According to the recent statistics, India’s population is over 1.2 billion people. India is the largest populated democratic nation in the world. On the south it is surrounded by the Indian Ocean. The Arabian Sea lies on the south west and the most famous Bay of Bengal actually lies on the south east. The border of Pakistan lies on its west and the border of China and Bhutan lies on north east side. Furthermore, the border of Burma and Bangladesh lies on east side. India is near to Sri Lanka and Maldives in the Indian Ocean. India shares its maritime border with Indonesia and Thailand (Kochanek, 1974)

Current Development of the Indian Economy

When it comes to the economic growth in India, it absolutely depends upon the variety of factors that compose the giant economy of India. These various factors include services industry, agricultural sector and most prominently the manufacturing sector. By highlighting an element of the purchasing power parity (PPP) as in connection with the gross domestic product (GDP) by the legendary financial entities of the world , India is ranked as one of the top most economy of the entire globe. These legendary financial entities of the world include the World Bank, the CIA and the International monetary Funds.

Agricultural Industry

By looking volume vise at the agricultural industry of India, it can be said that it is the second largest producer in the world. Some important elements of agricultural industry have played an exceptional role in improvement the Indian economy. This development took place by providing employment opportunities to the millions of people in several important areas like fishing, logging and forestry divisions. Reflecting back to the financial year of 2009 when the entire world was busy stabilizing their sectors, the Indian agricultural sector has put in 17.5 % to the complete GDP. Moreover, in the country like India which possesses a biggest slum in the world has more than 50% of its labor force employed in the agricultural sector. Since 1950’s the overall production volume has gone up with a consistent rate in the agriculture sector of the Indian economy.

The major reason of this tremendous performance is the effective developments in the irrigation processes and the variety of up to date technologies that have continuously added by the Indian government to support the overall process of the economic developments (Bernardi2005). Other than these developments the Indian government has given an extra importance to the Research and Development process going on in the country, specifically in the agricultural sector. They have formed the different research institutes which includes the Indian Agricultural Research Statistics Institute, the Indian Agricultural Research Institute and Indian Council of Agricultural Research (Sukhatme 1966).

Manufacturing and Industrial Arena

In the lights of the study by global management consulting firm Mckinsey, by the year 2025 Indian manufacturing industry may perhaps touch the new heights of US$ 1 trillion. For these possible developments, there are two major reasons which comprises of the increasing demand rate in the country and desire for creating the low cost factory structures in India by the multinational companies. Unemployment rate is expected to reduce in a progressive manner by that time because approximately 90 million job opportunities will be generated by 2025 expected growth. This sector will be contributing the 25-30% in the India’s gross domestic product (GDP). This outstanding detonation in the economic development provides both international and the domestic players to invest and cultivate in India.

Growth and development Trend of an Indian Economy

In February 2014, the Indian Purchasing Managers’ Index (PMI) has witnessed the year high of 52.5. This Purchasing Managers’ Index (PMI) is entirely based on the data, which is collected through the help of questionnaires that was filled by the purchasing executives of the 500 developed manufacturing companies. This Purchasing Managers’ Index (PMI) has touched 52 and 51.4 in March 2013 and January 2014 respectively, furthermore slimming down below 50 represents contraction. The fast moving consumer goods division is the most excellent performing section in the manufacturing industry resulting in more production output as well as new orders (Pratiyogita, 2013). As per the survey statistics overall operating conditions has shown an excellent development and the Indian exports have reached the new heights....................................

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