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India Goes Global : Its Expanding Role in the Global Economy

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Is India the Next Great Hope for Global Economy?

By Praveen Fernandes and George Ignatius. Understanding India has often been difficult for those who look for archetypes in each country. The persistence of poverty, illiteracy, malnutrition and the low rank in human development index makes it look somewhat similar to other poor and developing countries. However, its software and engineering skills, its exports, its human resources and, more recently, its ambitious forays into acquisition of businesses abroad make every foreign observer sit up and take notice of the elephant that has begun to dance.

The world economy has evolved considerably since World War II.

5 shocking facts about extreme global inequality and how to even it up | Oxfam International

China and India have come to occupy the top slots in the emerging order. Can they alter the world economic scenario? If, yes, by what time and how? These are the critical questions that are being raised. Its contribution to global growth was 8. Domestically, economic growth in the last ten years averaged 6. The indices of trade and financial integration for India have also increased sharply over a ten year period. Trade integration has risen from Financial integration has increased during the same period from The question is would India be able to sustain these growth rates in the long run.

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The answer, I believe, is yes. The reason for my optimism is based on the following factors. First, there has been a shift in the structure of the Indian economy, with the share of agriculture declining to Second, the industry sector has moved up to a higher share of China overtook Japan as the world's second-largest economy in , measured in current prices or nominal terms not accounting for inflation , according to data from the World Bank and the Organisation for Economic Co-operation and Development. It has since remained in that position, second only to the United States.

Some economists have predicted that China's economy will surpass America's by about But when taking into account the different standards of living across countries — also known as adjusting to purchasing power parity — the Chinese economy has been the world's largest since , according to the World Bank.

Globalisation in India

Under the leadership of Deng Xiaoping, one of the most prominent and powerful leaders of the country in the s, China kicked off a series of reforms in that brought the country out of economic isolation. However, a study released in March by the Brookings Institute estimated that China may have overstated its GDP growth from to by 1. One major driver behind China's economic rise was its massive network of factories that churned out everything from toys to mobile phones for consumers all over the world.

China's entry into the World Trade Organization in helped it cement its status as the world's factory and largest trader. In the McKinsey report which analyzed countries, China was found to be the largest export destination for 33 nations and the largest source of imports for In addition to its dominance in trade, China has also grown over the years to become a major player in global investment flows.


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BENGALURU: The management consulting team of KPMG is looking to hire nearly 8,, people in India, a tenth of them to be deployed on projects overseas, as they see global clients increasingly want one of the Big Four audit firms to implement solutions and demonstrate results for the strategy guidance it gives them. Traditionally, consulting and advisory firms have looked at global companies and helped them draw a strategy to either cut costs or improve business, most often using technology.

The plan implementation is often done by their client employees or third-party vendors based on these strategies. This is changing, and the consulting firms are expected to deliver results, often pegging their fees to outcomes, said a top executive of KPMG.


  • Role of India in the global economy.
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  • So, KPMG is consolidating its globaldelivery capability in India, its largest offshore base, hiring engineers and executives to deliver on the promises its consultants make to clients. The global trend is also reflected in India, said company executives.