But now, India is moving towards a more liberalized semi-capitalistic export based economy. It is limited but the effects of globalization and its large rural population who still can't participate but in my opinion that leaves room for growth. Removal of import barriers means foreigners can compete in the market so the national/domestic industries have to improve. This has the benefit of improving product and procedures so profits shoot up. Growth rates rise and the standard of living for the populous follows it.
India can now boast pockets of strength in the IT and Pharmaceutical industry because its younger generation speaks English and are highly qualified. They have a strong work ethic. This allowed India to take advantage of a strong labor force which had lower costs for them. Call centers and new manufacturing sprang forth. India's engineering exports rose dramatically because they were able to be more effective in the import of industry and the export of goods. This has caused a middle class bubble just waiting to be served.
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