GE Case India 3) In the post 1990 time period in India, the economy seen a sharp increase in sales thanks to privatization and deregulation. Private market factors can deliver many goods or services efficiently than the government due to free market competition.
Over time this will lead to lower prices, improved quality more choices, less corruption, and quicker delivery. Deregulation lowered barriers to entry in industries. When more firms entered an industry, competition increased and consumers had more choices for products and services and more supplies of products leads to cheaper prices for the consumers. Removing barriers of foreign irect investment encouraged other countries to invest their capital in India. Foreign businesses in India created new jobs. It also helped in increasing the salaries of the workers. This enabled them to get access to a better lifestyle and more facilities in life.
It has been observed that foreign direct investment allowed for the development of the manufacturing sector of India. 4) India’s is developing strength in the areas of software and pharmaceuticals. By referring to some of the facts the case mentioned, these two industries look very profitable and promising. (“ The information technology sector where India has merged as a global center for software development with sales of $50 billion in 2007, which accounts for approximately 5.
4% of their GDP’’). Since the nation has seen that they do in fact have the ability to grow in this sector it would be pointless to not focus on developing strength in this industry. To the pharmaceutical industry, it’s an opportunity for India to keep their companies as credible players. India’s companies have many advantages which are; technological strong, low cost of production, low research and development costs, innovative scientific manpower, and the strength of nation laboratories.India is focused on selling generic versions of medicine, which is increasing on public demand.
Success in these industries can help generate growth in the other sectors of the Indian economy because it can boast the welfare of its people. By making sure the citizens have a higher level of income, the country will have a higher rate of consumption, which can help the economy grow. With earning the respect and trust, India would have the smarts to compete with other countries. Many countries will take notice that India is growing economically and maybe the balance of trade will rise. Steven Heyward 7/11/11