The economy of India

India is rapidly developing due to its high rates of urbanization and favorable business environment. Due to the emergence of an affluent middle class with significant purchasing power in urban areas, it is becoming a popular business destination. India's business environment is favorable due to its high customer population, thriving economy, and young labor force. The aforementioned qualities of India, along with the government's efforts to improve the country's reputation abroad, draw in foreign investment. India aspires to be a manufacturing hub, thus investors enter its industrialisation corridors to advance not just business but also development of skills among her noble citizens.

India’s Background

Over the recent past, the Indian economy has improved significantly with her Gross Domestic Product (GDP) approaching 10%. This is very encouraging and enabling for business growth furthermore attracting more investors. The growth in India is multifaceted with growth being experienced almost in all her sectors of the economy. This has enabled the country to develop her buildings and infrastructure improving businesses. Growth in services such as water supply, electricity connection, gas supply and other housing utilities are on the rise at over 10%. The services delivery and expansion in hotels, trades, communication infrastructures and transport services are insightful for development. The manufacturing industries have expanded by over 5% this entails the mining sector with about 3% and the construction sector to like 2% growth (Slavica, Amorós, and Arreola, 2014).

The successful growth projections makes India compare to the economies such as that of China, Germany and Japan. Just like China, India is fast growing with its economy outperforming some of the expectations of the recent past. The per capita in terms of the Gross National Income (GNI) has improved however the country still hung as a middle income economy. The projection however by the World Bank places the country as an upper middle income economy in next 20 years. By then if India continues with such growth rate it is projected to match the current Chinese economy (Schwab and Sala-i-Martín, 2014). India’s economy is factor-driven as such the growing need of public and social infrastructure and institutions is enabling for the business growth and entrepreneurship. The social drivers of the economy ensure that every individual is able to access education and health facilities (Saraf and Banerjee, 2013).

Discussion of Rationality and Justification of Measures Adopted

The economic growth is India is fast as such businesses and investors see an opportunity investing and gaining from the robust Indian market. To start a business for instance is easier than before with a reduction in the registration days and the digital applications being used in tax registration. The country enjoys a good relationship with nations in the BRIC grouping enabling partnership in terms of trade and investor recommendations. The network has opened up the Indian market and business opportunities to even a wide global spectrum. As such India can supply its products to the markets all over the world. Trade and development have helped the country improve on the people’s standards of living and thus is able to sustain its high population. Multinationals in India operate differently with the established corporate hubs present in the country which offer special zones with models enabling business growth.

India is keen to compete favorably with China in gaining control over the investments and trade worldwide. Indian is preferred for its service delivery thus many firms prefer to contract Indians to undertake services on their behalf. The median age of working Indians is 29 thus majority of the working population entails young people. Their input is energetic and crucial in the attainment of development and prosperity (Shukla, and Awasthi, 2012). The democratic governance in India is a prime driver of economic activity and investment. The country still enjoys her strengths in the ideals and fundamentals that are intact. The expanded consumer base and stronger institutions have made business flourish in India.

The development of entrepreneurship in India has been robust with the country keen on wealth creation and establishing employment opportunities fro its citizens. This has been crucial in shaping the country’s economic destiny providing the much needed services and earning revenues to the government. Growth in Indian economy is primarily linked to entrepreneurship which is promoted throughout the country. The working majority in India forms a crucial part of entrepreneurs who drive the country’s economy. Engaging with the youths for instance is crucial in the development and enhancement of their entrepreneurial skills. The government is keen on establishing programs and developing policies that enhance innovation and capacity empowerment. Technological and scientific enhancement is crucial in the government’s agenda and promoting business development. Indian must enhance her innovative techniques and ensure that entrepreneurship grows.

The dynamism in the Indian market is set to strengthen with the establishment of business incubation centers and present of angel investors. Venture capitalists have been instrumental in the development of the busyness ecosystem by enhanced funding. Government sponsorship on the incubators has played significant input to innovation and entrepreneurship. The institutions ought to enhance the development of more entrepreneurs instead of producing more job seekers on quest for white collar jobs. Ensuring that they youths create their own business which expand the employment opportunities as such ensuring that the unemployment rates reduces. The social values, individual attributes and indicators of entrepreneurship are crucial in the business development in India.

Critical Analysis of Findings

India provides an enabling environment for doing business by cultivating values in business related activities and creating positive attitudes. Empowering entrepreneurs is crucial in their development and success. Having enabling culture is important in ensuring that business activity thrives well and more revenues generate as a result. The ecosystem of doing business being value oriented and optimistic for entrepreneurs promotes the investments attracting even foreign funding. Indian government is keen on putting in place policies that value the cultural makeup and value chain of the country. Establishing favorable grounds for business and ensuring that an attitude that is favorable to business is enhanced is crucial for the development of entrepreneurship (Kwon and Arenius, 2010). These societal values can be seen in the way individual entrepreneurs prefer starting a new kind of venture they deem befits their needs and satisfaction. When such people progress and become successful, they gain a social status of esteem in their society where they become respected. The media also plays a crucial role in painting success in entrepreneurship and highlighting successful entrepreneurs as such enhancing the business like culture.

The Indians adults have in general shown a positive response towards entrepreneurship and sees is an attractive and worthy career. The consideration of entrepreneurship as a career of high stakes has influenced majority of the youths to venture into it. Almost half of the adult population support entrepreneurship as a career desirable and respectful. Media attention to entrepreneurship has improved which is positive to business development. The younger adults are now seeing business as a worthwhile undertaking which is important in the society. Entrepreneurship as factor-driven has influence its development and individuals participating in it. Being a career driven initiative majority prefer taking after their family members in business thus trains early and as such further their families; businesses. Appreciating the entrepreneurs are crucial in fostering their activities and encouraging others to take part in it (Klapper, & Parker 2010).

The social and gender values in India have played a significant role in entrepreneurship as distinctive perceptions exists between the females and the males. Men are more than women in India and show more positive approach towards entrepreneurship. The societal and cultural perspective in India essentially accepts entrepreneurship as such gender disparities doesn’t play a significant role in influencing businesses. Women though not much active in business provide support and motivation to their fellow men. Indian heterogeneity is different from other countries in the region. It has a big population with diverse cultural and physical patterns. The distinct features of such individuals include their rituals, creeds and customs which in a way affect their ways of doing business. The factors of diversity are crucial in the development of different aspects of entrepreneurship. The influence of such factors may be responsible for the distinctive formation of businesses. A significant different is visible in the different regions of the country. The west for instance have 69% of its adults supporting entrepreneurship while in south about 89% supports it. More media attention has been given to entrepreneurship also in the south.

The GEM models of concepts are crucial in determining the individual perception on their attributes to entrepreneurship. Some of the attributes that can be factors include the intentions of the entrepreneur, fear of failure, perception of individual capabilities and even on opportunities. With regard to the factor-driven kind of economies, individuals outline varied attributes with regards to entrepreneurship. Different individuals have distinctive perceived opportunities with regards to the ease of doing business. Whereas some believe that individuals should have background knowledge, experience and skills in order to do business other are keener on their phobia of failing. The intentions of the entrepreneurs to form business are crucial in their inception and require support for their ideas. The business ideas of individuals vary across the board encouraging diverse thinking and more opportunities. The threats and opportunities in different localities influence the success of entrepreneurship. Individuals must learn to deal with the threat that comes by within their jurisdictions and embrace each and every opportunity that presents itself. The environment is also crucial in ascertaining the viability of entrepreneurship as a practice. Enabling environment encourage investment and allow investors to invest their money in such an ecosystem.

To develop an entrepreneurial idea it is crucial to have the overall idea, skills and funding. Understanding the surrounding environment is vital for entrepreneur to identify and understand the surrounding requirements for success. Aspects of flexibility, risk and independence are essential in ensuring that the abilities are categorized in form of innovative kind of thinking, sound judgment and the recognizing of opportunities. Capital is crucial for business and can be raised independently or with support from the government. India has proven to be fast developing economy with entrepreneurship being the driving force for the economy. An innovative way of thinking is crucial for entrepreneurs to maneuver over their challenges and become successful in their undertakings (Tang, Kacmar, and Busenitz, 2012).

Individual’s belief and perception ought to be enlightened. Perceptions of the people are crucial shaping the choices being made in an economy. India’s continued growth has been instrumental in supporting young entrepreneurs and ensuring that technology is embraced by enhancing innovative learning. Identifying opportunities is crucial for venture entrepreneurs who are keen on entrepreneurship. This alertness is crucial for business and ensures that nothing is given to chance. The intentions of majority of the entrepreneurs provide a prime prediction for the future of their business behavior (Kureger et al., 2000).

Current Status of Entrepreneurial Activity in India

India is developing at a high rate with entrepreneurship being at top gear. The team’s feeling is that India is on a right path and if her projection works as planned it will be a top economic hub in the near future. India is attractive to entrepreneur as the country’s policies and governance makes it easier to trade and do business. Investors see it as an ideal place for entrepreneurship and investment. Manufacturing companies have expanded their industries to gather for the growing needs of the middle class population. India socio-economic factors are promoting to the entrepreneurs who are keen on earning and gaining a societal status. The majority of the working class being young essentially is crucial for future development and sustainability. Entrepreneurs are their own creation as such innovation and skills are based on their input (Baron, 2007)

To be at par, more needs to be done through empowerment and institutions being proactive fore runners in the formulation of careers which are more pro-entrepreneurship. The good perception of business among both males and females is crucial societal factor that makes entrepreneurship tenable. It is vital that entrepreneurship is cushioned well so as to keep its reputation as a worthy career and not bring shame to individuals in case of failures. This way in case business fails the affected person is able to be compensated and hence they can move on with their livelihood. Entrepreneurship creates employment for the economy which helps the country fight unemployment crisis. If more people are encouraged to establish business, more people are able to get jobs and as such the individual’s livelihood get improved and their living standards get uplifted. This can be done by the government of the day providing incentives and friendly packages for entrepreneurs. Training also helps sharpen their skills and as such be able to deal with the business associated risks well (Bosma, 2011).

In conclusion India continues as a fast growing economy whose mandate is primarily enabled by way of entrepreneurship. The Global Entrepreneurship Monitor is crucial in creating a comprehensive report on India and how it cooperates with her fellow counterpart’s majority coming from BRIC. The report compares different aspects of entrepreneurship that exist among the different nations of the world. India is a visionary country with a supportive leadership who are keener on improving the livelihood of individuals and their living standards. Entrepreneurship is instrumental in fighting poverty and ensuring that individuals gain equal shares of opportunities and access to socio-economic amenities.



References

Baron, R. A. (2007). Behavioral and cognitive factors in entrepreneurship: Entrepreneurs as the active element in new venture creation, Strategic Entrepreneurship Journal, vol. 1, no. 1–2, pp. 167–182.

Bosma, N. (2011). Extended report: entrepreneurs and entrepreneurial employees across the globe. Utrecht: Utrecht University.

Klapper, L. F., & Parker, S. C., 2010. Gender and the business environment for new ferm creation, The World Bank Research Observer, pp. 1–21.

Kwon, S. and Arenius, P. (2010). Nations of entrepreneurs: a social capital perspective, Journal of Business Venturing, vol. 25, no. 3, pp. 15-21.

Saraf, N. and Banerjee, B. (2013). Global entrepreneurship monitor 2014 India report. New Delhi: Emerald Group Publishing.

Schwab, K. and Sala-i-Martín, X. (2014). The global competitiveness report. Cologny: The World Economic Forum.

Slavica S., Amorós, J.E. and Arreola D.M. (2014). Global entrepreneurship monitor 2014 global report. London: Global Entrepreneurship Research Association.

Shukla, S. and Awasthi, D.N. (2012). Gen Y and entrepreneurship: the enablers, the killers and the eco-system. In S. Shukla (Ed.), Perfect professional: enabling managers to make a difference.

Tang, J., Kacmar, K. M., and Busenitz, L. W. (2012). Alertness in the pursuit of new opportunities. Journal of Business Venturing, vol. 27, no. 1, pp. 77–94.