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Issues in the Global Economy Essay Example

Issues in the Global Economy

The main components in Indian service sector include Information Technology (IT) which is one of the biggest and fastest growing service sectors. It has measured a growth rate of 30% annually (Hyvonen & Wang, 2012). India attained a rank of seventh in the global services related to trade in the entire world according to WTO in 2011 (The Economic Times, 2011). As per data revealed by the Government of India during 2008, the United States (USA) and the United Kingdom (UK) were the major top destinations of exports in the IT software and service sector for India. Subsequently, the USA’s share decreased from 68% to 60% from the year 2005 to 2008 and Europe’s share increased from 23% to 31% during same period of time (Government of India, 2010).Export plays a very important role in the economy of any country. A healthy substantial development in the trade or in the foreign exchange reserve will enable to maintain the country’s growth constantly at a very high rate. In nations such as India which is growing at a very faster rate, the commercial services exporting is a strong factor which contributes to its GDP. The trend of globalisation and liberalisation has opened the Indian economy further in the previous two decades. The official figure reveals the fact that export and import between 1990 and 2008 increased and the share of export in the Indian GDP also increased from 7.13% to 23.48% (Mukherjee & Mukherjee, 2012). The high growth countries are always characterised by the rapid expansion in their export. In the context of India, the second largest population in the world with the huge amount of manpower, more development and emphasis in the field of commercial services exports has led to better employment opportunities, which ultimately has affected the economic growth as well. There have been a lot of advancements and variations in the performance and growth of various sub-sectors of services. Commercial services including IT and communications have been witnessing the fastest pace of growth in the Indian context than other services sectors’ growth.  

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  • Pages: 9 (2000 words)
  • Document Type: Essay
  • Subject: Macro & Microeconomics
  • Level: Undergraduate
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