India in the Global Chaotic Economic Order

Abstract

India after going through the reforms in 1991 was eluded to feel that it is going through the transformation as if it would be globalized. India which toed the State-controlled tenets even when the pace of globalization was increasing, but it became difficult to handle the balance of payment crisis. It is at this stage the Indian economy had come out of the web and make it more open and resilient. Before it had taken the full advantage of globalization, disruptive forces pulled down the global economy and India could save itself from the downswing. It was because the market which was expanding with private and foreign investment began to fold as the flow was disrupted or foreign investment was not expected to maintain the tempo. The economy is badly stuck up because of the no effort to undertake labor reforms and also to neglect the productivity in agriculture. The mega industries were not in a position to shoulder the growth trend unless the ancillaries or subsidiaries were becoming strong. With a single structural reform in the form of GST, the MSME sector has collapsed. How far urban market absorbs the capital has its limit which has been reached and now the growth rate after falling to little over six percent will have to creep at snail pace to reach at 8% even in five years. Till then Chances of poverty to resurface are also increasing.