Decoupling of Indian Economy and economy should have enough strength so that they don’t require support of developed counries like US and European countries for their growth The Problem Indian Economy is the 3rd largest economy by GDP (PPP) and is expected to overtake US as the 2nd largest economy by 2030.It is a mixed economy which is a mixture of socialist and capitalist economy
wherein
privately
owned business and public sector business (owned by government) plays a vital role in the running of the
economy.
In
a
mixed
economy both consumers and producers have right to consume and produce the things they want with government taking the role of a moderator to remove harmful goods from the economy.
Looking back in history ,the 1991 globalisation reforms in India had given the Indian economy a tremendous boost in terms of growth due to increase in trade and competition. The Sensex had rallied from below 1000 levels to 20000 just in the space of 16 years. So why the need of decoupling of economies? The main problem was that countries like India via IT exports and China via exports of manufactured goods had synchronized their
business
cycles with developed economies to such a large extent that even if there was a hiccup in those economies, there was a strong wave of uncertainty in developing
What is Decoupling?
economies markets.
Decoupling is the ability of country to be self-sustaining or selfsufficient.
With
respect
to
developing economies like India it can be said that for decoupling to take place its financial markets 4
But there was a depression in the U.S economy. The housing bubble which was being built since the 2000 suddenly blew out and the DJI came crashing down and so