If we compare the growth of the Gross Domestic Product of countries, one can see that the countries that grow fastest are those which are located in the developing world. The fastest growing economy is India. The main reason for its success is its large population.
In comparison to the other developed economies, India has remained relatively behind in terms of economic development. A number of reasons have been cited as to why India remains relatively slow in its economic progress. One of the major reasons is that there are no strong barriers to foreign direct investment (FDI) in India. It is also one of the fastest growing economies.
India's growth is based on the high rates of consumer spending. The country has a number of highly developed products and services that attract a large number of buyers and sellers. However, many people still live in rural areas where basic amenities such as electricity, telecommunication and transport facilities are not available. However, these basic needs are slowly being fulfilled and with it, the growth of the Gross Domestic Product of India is on the rise.
Since the government is trying to bring down the economy of India through fiscal policies, it is expected that the economy will be on a slowdown. There are various factors which are responsible for the slow economic growth of the country. These include lack of foreign direct investment, low consumer demand and high inflation. This makes it difficult for the country to develop economically.
There are many other countries which are on the increase while the growth rates of India are declining. The best way of comparing countries is to look at the GDP growth rates over time. The top 5 emerging economies have all seen steady growth over the past few years. For example, China has seen rapid growth rates during recent years.
The other top economies such as Russia, Brazil and South Africa are also showing high growth rates in the coming years. China is still recovering from the devastating global financial crisis. As China grows, so does the Gross Domestic Product (GDP).
While there are many factors which contribute to the slow growth rates of the GDP of any country, there is an even greater reason that accounts for the growth of the GDP of India. This reason is the rapid growth rate of the population. The Indian population is increasing rapidly. Therefore, there are always more jobs, more potential customers and more opportunities.
The population growth rate is also relatively high in India compared to other developing countries. This is mainly because of the large number of people living in urban areas. It is estimated that around 65% of India's population lives in urban areas. In comparison to most developed countries, India's ratio is quite high. This explains the high per capita income level.
To understand the importance of the urbanization trend, it is important to know that the industrialization process in India has reached a new high. India is fast becoming a global center for manufacturing. The growth of the industries in India has increased significantly over the last decade.
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