The Indian Economy Essay Example | Topics and Well Written Essays - 500 words

The Indian Economy - Essay Example This rising working age means more workers in the future. More workers are important, because of the concern about demand increasing over supply. The Economist reports â€Å"that demand is outpacing supply and hence the pace of growth is unsustainable.† A greater number of workers could increase production, raising the supply, to meet the demand. More workers are also important, because the number creates more consumers. This makes the demand higher, but the supply raises as well. This circle makes an economy more stable, than just the demand rising with no increase in supply. However, if just the demand was rising and not the supply, inflation and depression follow. Workers and consumers are good for an economy. The one thing that more workers will need is education. Job training should be put into place by the government. New industries, especially computer related, should be taught in vocational schools. This would help the new workers coming of age to find jobs. It would not matter how old a worker, if they had no skills. The Economist states â€Å"60% of Indias labour force is engaged in low productivity farming.† These farmers will need skills to gain production jobs within urban areas. India government reforms have made the economy grow. The trade friendly reforms have created an import/export business that is lucrative. It is also easier for foreign investment, although this has not been as widespread as hoped. Lower oil prices make the economy better. Government regulation on employees in the workplace have made for happier workers. All of these reforms are good, but more need to take effect. Indias government has ambitious plans to increase total infrastructure spending to 8% of GDP over the next five years. This will involve some increase in government spending, but the idea is for the bulk of it to be financed by public-private partnerships. Although this is a good start, but the infrastructure is in poor shaped. More