Question

Discuss the effect of political decision on India's economy.

Answer 1

Shortly after becoming Prime Minister of India in 2014, Narendra Modi had said he dream of turning India into an economy of $20 trillion. Five years later, fresh from a resounding husting win, Modi had a somewhat lesser goal: an economy of $5 trillion by 2024 (only slightly above what the IMF expected India to do). Yet economists reacted very differently and expressed the greatest skepticism that this goal could be achieved.

There is a set of individuals in each successive government who are in charge and charge of political decision-making. They have the task of making laws and arbitrating conflicts and enforcing them. This community is mostly inherited from other countries and nations and is part of democracy, where political positions remain but citizens are often in turnover. The executive branch and the governing party in the presidential system are the government in the parliamentary system. The government consists of the Prime Minister and the cabinet as well as, in some cases, administrative, legislative, judicial, bureaucratic and, in some cases, transferred authorities.

Regulations and regulations concerning business, conduct of the organization, disposal of the excess and relationships are prescribed by the Government. Like the licensing, industry location restriction, factory work conditions regulations, management pay ceilings, prohibitions of certain activities, dividend ceilings, business income tax, electricity supplies companies' tariff restrictions, investment regulations, labor managers settlement provisions The government uses administrative and fiscal encouragement as well as disincentives to regulate the economy.

For example, if government spending policy also impacts businesses, this would increase the profits for companies that provide books, services , and facilities for schools if the government invests more in schools. Also, some businesses such as non-commercial organizations receive subsidies. In order to allow huge investment in transport, aviation, insurance and pharmaceutical systems from international companies and multinationals, the government has welcomed foreign direct investment. In tourism growth, government has played a vital role. The current plan is aimed at promoting, promoting, investing and developing infrastructure for tourism.