Question

Why does everyone around the world look to the US for financial guidance and stability? Consider this question as you get into the discussion here and address the comparative regulations around the world. When selecting a country, select one to compare against the US (have some fun in selecting your comparative country).

Answer 1

The U.S financial system is easily the largest in the world although the position stands to be challenged by a unified European Financial market and in many aspects, the most advanced. It also has the greatest diversity of institutions, the widest variety of instruments and the most highly developed derivative markets. In many areas of finance , it leads in innovation. It is also one of the most idiosyncratic financial system in the world characterized by an oddly parochial set of law and regulations that both impair competition and shield inefficiency. Because of these anomalies, which are the apparent to even the most casual student of financial system, the US system is not one that other countries with less fully developed economies and financial systems would be well advised to emulate , at least not in every detail. That is why everyone around the world look to the US for financial guidance and stability. However, much can be learned from a careful examination of both the strengths and the weaknesses of the US financial system.

If you compare against US , India is the fastest growing trillion economy in the world and the sixth largest with a nominal GDP of $2.61 Trillion. India is poised to become the fifth largest economy overtaking the United Kingdome by 2019 asper the IMF projection. The country ranks third when GDP is compared in terms of purchasing power parity at$9.45 trillion. When it comes to calculating GDP per capita, India’s high population drags it normal GDP per capita down to $1982.The Indian economy was just $189.438 billion in 1980, ranking 13 th on the list globally. India’s growth rate is expected to rise from 6.7% in 2017 to 7.3% in 2018 and 7.5% in 2019, as drags from the currency exchange initiative and the introduction of the goods and services tax fade a according to IMF.

India’s post Independent journey began as an agrarian nation , however over the years manufacturing and services sector have emerged strongly. Today its service sector is the fastest growing sector in the world, contributing to more than 60% to its economy and accounting for 28% of employment. Manufacturing remains as on of its crucial sectors and is being given due push via the Governments initiatives such as “Make in India”. Although the of its agricultural sector has declined to around 17% ,it still is way higher in comparison to the western nations. The economy strength lies in a limited dependence on exports high saving rates , favorable demographics and a raising middle class.