Purpose Statement
The chosen emerging economy is India. It presents an interesting case study in terms of macroeconomic indicators since India possesses a large population and enormous economic influence with a still relatively poor population and a number of social issues. India’s different economic indicators, such as GDP growth, inflation, and unemployment, can also lead to different results when predicting and analyzing the future state of a country. Still, India is the largest South Asian economy presented in the modern day.
Economic Health
Gross Domestic Product
India has one of the largest GDPs in the world, although its index per capita is comparatively low. According to the CIA World Factbook (2023), India’s GDP reached 9.2 trillion dollars in 2021 and 6.600 dollars per capita. Still, the pandemic era influenced the GDP growth rate, which reached -6.6% in 2020 and 8.8% in 2021. This also showed the economy’s vulnerability to external shocks, such as pandemics.
Inflation
Another crucial part of India’s economic health is its fight against inflation. Prior to the epidemic, the Reserve Bank of India kept inflation rates within the range. The period of COVID-19, on the other hand, caused instability, notably owing to supply chain disruptions. The central bank undertook inflation-control measures, highlighting the difficulty of monitoring this macroeconomic indicator in a varied and populous country like India.
Unemployment
Unemployment has been a longstanding issue in India. Prior to the epidemic, the country struggled with underemployment and low-quality jobs, especially in the informal sector. The epidemic compounded these difficulties since lockdowns and economic disruptions resulted in employment losses and suffering for vulnerable communities.
Economic Challenges
India faces a number of economic issues that need long-term strategic solutions. A large proportion of India’s workforce works in the informal sector, where there is little job security or social benefits (Central Intelligence Agency, 2023). Because these occupations are informal, the economy is exposed to external shocks, necessitating policies that encourage formalization and social safety nets. In India, income and wealth inequality continue to be major issues. The difference between the poor and rich in India is significant, necessitating active measures to reduce gaps and promote equitable access to economic opportunities.
References
Central Intelligence Agency. (2023). India. In The World Factbook. Web.