India Assignment Example | Topics and Well Written Essays - 1750 words

India - Assignment Example It becomes the crux of globalization phenomenon. In a globalised world, companies spread their businesses to other countries too. What are the key indicators of international business? A layman will list export and import as indicators of international business. Globalization, industrialization and urbanization will be the response of an environmentalist, but an economist’s answer will be FDI, GDP, GNI, GNP and HDI. In this content, let us take an outlook on the international business in relation to India. India, a country with diversity in culture and society, had made path breaking growth in international business. After the initiation of economic reforms in early 1990s, foreign investors are finding it easier to do business. Now, India exports software to around 90 countries. Historical background of the topic under study GDP and GNP are used in business and economic forecasting. Both measure the status of the economy, but calculations and applications are different. GDP st ands for gross domestic product, which can be defined as the estimated value of the country’s production and services, within its boundary, calculated during one fiscal year. The Bretton Woods conference held in 1944, promoted GDP as a standard tool in Economic analysis of a country. China re-designed this standard GDP in 2006 and created an index known as ‘Green GDP’, which also took environmental factors into consideration. In 1990, United Nations launched the Human Development index, which is the sum of human development factors such as education, life expectancy and health in a country. GNI (Gross national income) is similar to GNP, the only difference being indirect business taxes not deducted while calculating GNP. If an individual or company from one country invests in business of another country, it is called foreign direct investment. Every country has a different history in terms of FDI. This one index can be a paramount indicator to analyze the extent of international business in a country. In India, two attempts to liberalize economy were made in 1966 and 1985, but both resulted in vain. The first successful attempt was made in 1991 during a period of crisis. â€Å"In 1991, after India faced a balance of payments crisis, it had to pledge 20 tons of gold to Union Bank of Switzerland and 47 tons to Bank of England as part of a bailout deal with the International Monetary Fund†(Wire Bureau, 2013). Current situation analysis The current situation in India needs a special mention. â€Å"CAD narrows to 1.2% of GDP, but India not out of woods as overseas loan repayments loom† (Gayatri, 2013).This was a very recent case, but India had survived many hardships in the recent past. When the US state financial crisis badly affected economies of world countries, India suffered only little due to its high internal domestic consumption and stability. Since 1991, India gradually transformed from closed door economy to open door eco nomy. In fiscal year 2011 to 2012, the country attracted US$46.8 billion as FDI in various sectors. There are few industries where foreign investment is prohibited, but these kinds of restrictions are gradually getting removed. The government recently cleared 20 proposals of foreign direct investment (FDI) worth Rs.916 crore, thus increasing FDI flow. †(Wire Bureau, 2013). India continues to be an attractive destination for business with large human resource base, favorable demographic profile and diversified natural resources. QFI’