http://69.17.111.188/site/c4/w116/downloads/India.pdf
India: country background
Diverse is the one word that describes India best. With an area approximately one-third the size
of the USA, it is home to over one billion people of considerable economic, ethnic, linguistic,
After years of socialist-oriented economy and commercial relations oriented primarily to the
Soviet block, in the mid-1980s India initiated economic reforms which started opening up its
consumer markets to the western world. Overall, the country has managed to maintain
economic growth even during the Asian crisis in 1998. Despite the reforms and economic
growth, India continued to heavily restrict imports through the 1990s. However, in compliance
increase of imports to the country. Nevertheless, the government continues to discourage
Despite the economic growth, a very large proportion of India’s over 1 billion population
continues to live in extreme poverty. On the other hand, it has the fastest growing middle class
in the world and forecasts indicate rapid growth of the consuming class. There is serious
disparity between the urban and rural population in India. About 70% of the population lives in rural areas
where unemployment rates are higher and incomes are significantly lower. In
result, there is significant migration toward urban areas in search of work and better payment. The text box
highlights some socio-economic indicators of India and illustrates the seriousness of the economic and
Typical for poorer nations, Indian consumers spend a significant proportion of their income on
food. However, consistent with the positive reports and forecasts for increasing incomes,
consumer expenditure on food is increasing
India: country background
Diverse is the one word that describes India best. With an area approximately one-third the size
of the USA, it is home to over one billion people of considerable economic, ethnic, linguistic,
cultural, and religious diversity.
After years of socialist-oriented economy and commercial relations oriented primarily to the
Soviet block, in the mid-1980s India initiated economic reforms which started opening up its
consumer markets to the western world. Overall, the country has managed to maintain
economic growth even during the Asian crisis in 1998. Despite the reforms and economic
growth, India continued to heavily restrict imports through the 1990s. However, in compliance
with WTO commitments, in 2001 it removed all quantitative restrictions, which led to rapid
increase of imports to the country. Nevertheless, the government continues to discourage
imports through both tariff and non-tariff barriers.
Despite the economic growth, a very large proportion of India’s over 1 billion population
continues to live in extreme poverty. On the other hand, it has the fastest growing middle class
in the world and forecasts indicate rapid growth of the consuming class. There is serious
disparity between the urban and rural population in India. About 70% of the population lives in rural areas
where unemployment rates are higher and incomes are significantly lower. In
result, there is significant migration toward urban areas in search of work and better payment. The text box
highlights some socio-economic indicators of India and illustrates the seriousness of the economic and
social deprivation.
Typical for poorer nations, Indian consumers spend a significant proportion of their income on
food. However, consistent with the positive reports and forecasts for increasing incomes,
consumer expenditure on food is increasing
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