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Economy
Currently the fifth largest economy in the world, India has developed a diverse and competitive industrial base. Plans for the various sectors are drawn up by the Planning Commission which is headed by the Prime Minister. The National Development Council, comprising the state chief ministers, is the highest decision- making body. Initially, emphasis on self-reliance led to the establishment of a strong public sector presence in areas like steel, cement, power and heavy engineering.
The tone has altered today. Reforms ushered in during the 1 990's led to much economic restructuring, holding out the promise of a strong and resurgent India. The results showed: GDP grew by 7.1 % in 1996, while inflation dropped from 12% in 1991 to the current 3.70%. In the last three years, the industrial sector has registered a healthy growth, averaging 7%. Globalization and Liberalization, key aspects of the new economic order ensure that India is no longer isolated from international markets. Within India, there is a strong private sector presence and foreign investment has entered many sectors, including the previously state monopoly of infrastructure.
In an attempt to create a positive milieu for economic growth, the government has introduced measures like a reduction in customs duties and tax holidays in some sectors. Incentives have also been giving to industries like pharmaceuticals, housing, information technology and textiles; Corporate restricting measures are being planned and this will inevitably lead to accelerated industrial growth. Exports, which now reflect an impressive product range, have shown a significant upward trend, and not surprisingly there are plans to tap new markets. Are now being adopted.
The competitive environment has acted as a positive challenge to the domestic industry, which has lost no time in restricting itself to meet the changed market placed.
Today, India manufactures highly sophisticated telecom equipment and computer software and has entered high-tech areas like nuclear power generation and the manufacture of space equipment. Bangalore, which is the nucleus of such activity, is referred to as the Silicon Valley of India.
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