GROUP- 3

India inherited colonial economy at the time of her independence. Infrastructure at this stage was below the level from where effective growth could be carried out.

Thus Infrastructure bottlenecks both social and economic has been the cause of concern for economic development.

To achieve fast growth of economy, various factors are responsible, including Natural and Mineral resources, Capital, skill and technology, Liberal and Cooperative Government Policy and Infrastructure.

Port and road infrastructure bottlenecks coupled with difference in tax structure across states are impacting India’s competitiveness in the global market.

It also affect the sustainability of the competitive market and the capacity of the potential market.

In the late 200s, India's growth reached 7.5%, which willdouble the average income in a decade. Analystssay that ifIndia pushed more fundamental market reforms, it couldsustain the rate and even reach the government's 2011target of 10%. States have large responsibilities over theireconomies. The annualised 1999–2008 growth rates forTamil Nadu (9.9), Gujarat (9.6%), Haryana (9.1%), or Delhi(8.9%) were significantly higher than for Bihar (5.1%),Uttar Pradesh (4.4%), or Madhya Pradesh (6.5%).India isthe tenth-largest economy in the world and the thirdlargest by purchasing power parity adjusted exchangerates (PPP). On per capita basis, it ranks 140th in the worldor 129th by PPP.

New Industrial Policy Abolition of Licensing Freedom to Import Technology Contraction of Public Sector Free Entry of Foreign Investment MRTP Restrictions Removed FERA Restrictions Removed Increase in the Importance of Small

Industries New Trade Policy

Reduction in Restrictions of Export-Import: Reduction in Export-Import Tax: Easy Procedure of Export-Import: Establishment of Foreign Capital Market: Full Convertibility on Current Account: Providing Incentive for Export Fiscal Reforms Gross Domestic Product (GDP): Monetary Reforms