Amit's Blog

India's Economic Surge: Riding the Global Wave India’s GDP growth, with a 5.92% CAGR from 1990–2024, outstrips the global 2.98%. Their 0.65 correlation shows India amplifies global trends, with 1% global growth driving 1.5–2% Indian growth. Reforms and resilience fuel India’s edge in this dynamic economic interplay. The global economy is a vast orchestra, with each nation playing its part. For the past 35 years, India has been the spirited soloist, hitting high notes while syncing with the global rhythm. Since 1990, through booms, busts, and reforms, India’s GDP growth has danced with the world’s, creating a story of correlation, outperformance, and ambition. How closely do these economies move together? What drives India’s edge? Let’s explore this economic symphony, weaving in expert voices, data, and a touch of narrative flair. The Correlation: A Harmonious Yet Distinct Beat The correlation between global and India’s GDP growth rates from 1990 to 2024 is a robust 0.65 , p...

Is the quantum FDI very important? Is it the cause or the effect of economic development? Intuitively we know that it is important. The question is how important. The decision to invest in a particular country depends on several factors, including political situations, economic conditions, infrastructure, business growth, etc. Governments also play a significant role in attracting  foreign investors  by offering subsidies or tax concessions. FDI allows the transfer of technology—particularly in the form of new varieties of capital inputs—that cannot be achieved through financial investments or trade in goods and services. FDI can also promote competition in the domestic input market. Recipients of FDI often gain employee training while operating the new businesses, which contributes to human capital development in the host country. Profits generated by FDI contribute to corporate tax revenues in the host country However, if we look at two comparable economies (in terms...