As Rivals Falter, India’s Economy Is Surging Ahead
nytimes.com
Feb. 17, 2015
Feb. 17, 2015
Coded Expectation
GE4.04- identify growing international markets and describe the nature of these markets
Summary
Many developing markets have been failing recently, but one has surged, and investors have taken notice. India’s economy and rupee have grown at an incredibly fast rate and have shown no sign of slowing down. This is partially due to new business-friendly policies put in place, which allow companies to pay less tax and have less overall restrictions. Due to these new rules, foreign investors have been flocking to Indian cities such as Tiruppur, which has seen most of its factories double or triple in size. Companies have moved into these factories from places like China, where increased wages and persistent tensions with neighbouring countries have scared off foreign companies. However, the increase in economic production has led to poor conditions for the workers, leading many to go on hunger strikes due to what experts are calling “an erosion of labour laws”. However, with even more reforms planned, India will be well placed for success within the next decade.
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As shown by the graph, India's economy has been surging for over a decade, and even now shows no signs of slowing down (9).
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Connection
While many countries are considered growing international markets, none have grown as quickly or as steadily as India. While China’s economy slows and Russia faces sanctions, plunging them into a recession, India has emerged as the go-to growing market.
This growth has spurred not only Indian companies, who have expanded rapidly, but also, perhaps more importantly, foreign companies. As the article states, multinational companies are “looking to expand their Indian operations or start new ones.” The Indian market has an enormous labour force, which many companies have taken advantage of by doubling or tripling the size of their factories. For example, General Motors’ chief executive, Mary T. Barra, went to India to oversee the start of Chevrolet’s exports from India to Chile. As shown, all companies, no matter how big or small, have taken advantage of this growing international market.
This growth has spurred not only Indian companies, who have expanded rapidly, but also, perhaps more importantly, foreign companies. As the article states, multinational companies are “looking to expand their Indian operations or start new ones.” The Indian market has an enormous labour force, which many companies have taken advantage of by doubling or tripling the size of their factories. For example, General Motors’ chief executive, Mary T. Barra, went to India to oversee the start of Chevrolet’s exports from India to Chile. As shown, all companies, no matter how big or small, have taken advantage of this growing international market.