The Economy Of India & Its Relationships With Mauritius
India is one of Asia’s top economies and ranks 3rd only after China and Japan. One of its assets is its population of nearly 1.4 billion people. Thus, it has one of the largest talent pools in the world.Poverty is one the many ill that affect many Indians. Its actual poverty rate is 5% with around 70.6 million people living below the absolute poverty line. Corruption is a plague that affects this very promising economy. With bribes being the most common payments made, the economy suffers every day and this causes India to stay put as far as progress is concerned. The mass industrial production has also damaged the environment since firms do not hesitate to emit smoke in the skies of India. However, the economy is very powerful and more can be seen below.
The value of the good and services produced in India, that is, the Gross Domestic Product from 2015 to 2017 are as follows: Year Gross Domestic Product (GDP) 2015 $ 2.102 Trillion 2016 $ 2.274 Trillion 2017 $ 2.597 TrillionThe GDP can be broken down in four parts, namely Consumer Expenditure, Investment, Government expenditure and net exports which is the difference between imports and exports.Below is a graph depicting consumer spending from 2015 to 2018 ( financial year ending in July). Investment levels are also very important since it an important injection for the smooth running and operation of an economy. Below is a graph showing the trend in the level of Investment into the Indian economy.
The third component of the GDP is Government expenditure. This is also an injection into the economy and therefore it has a direct impact on the GDP. The 4th component of GDP is net exports. The latter is defined as being the difference between imports and exports. If exports exceed imports then the GDP will increase. However, in cases where imports exceed exports, the GDP will decrease. In the above graph, the vertical gap between the black and blue line represents India’s net exports for a specific period of time. If the black line is above the blue, it means that net exports is positive.As far as inflation is concerned, the Consumer Price Index(CPI) has to be used in order to calculate inflation. The CPI is basically a tool that takes into consideration the spending patter of an average Indian consumer in this case in order to calculate inflation. After my short analysis, I can predict that the GDP will be about $ 2.7 trillion in 2 years and assuming similar circumstances and no major change, the GDP could reach $ 4.2 trillion in 10 years’ time.
Relationship between India and Mauritius
If India and Mauritius were two persons, then as a matter of fact, India would be the father of Mauritius. The amount of foreign direct investment from India. In 8 years, India invested a total of $ 47.6 billion in Mauritius and this represents 90% of India’s investment in the African continent. Mauritius has started a MRT project since a lot of our projects being inspired by Singapore and India has The Indian Government has granted $353m for the Metro Express project. The tender for this project was handed to Larsen & Toubro, an Indian MNC and this again demonstrates the strong ties between the two nations. Before the project was launched, feasibility reports were prepared by highly qualified Indian engineers and analysts.India decided to establish the World Hindi Secretariat in Mauritius in order to make Mauritius one of its ambassadors in the Indian Ocean.
The huge nation has already proposed to establish a military base in Agalega, one of the islands which forms part of the Mauritian territory. At least two times per year, Mauritian commandos are compelled to participate in workshops organized by the Indian Army and Navy.This collaboration can also be seen in the field of education. Several students from Mauritius are given scholarships and bursaries in order to pursue higher studies in India. Mauritian universities not being of really high standard, the very good students are sponsored by both these these governments in order to achieve a high level of education.
Since 2006, Mauritius opened all of its doors to India and India opened all of its doors to Mauritius when Honorable APJ Abdul Kalam, then President of Republic of India signed a very important treaty nearly considered as sacred by the Mauritian population. Some Mauritian public hospitals rely on funding from the Indian Government to operate. Several medical machines used in the field of cancer treatment has been gifted by the Indian Government.The biggest proof of friendship between these two nations can be seen on the 12th of March and the 15th of August, when both the Mauritian and Indian flag are hoisted together, side by side and saluted by the Mauritian population.
Cite this Essay
To export a reference to this article please select a referencing style below