Emerging market Essay Example | Topics and Well Written Essays - 1500 words

Emerging market - Essay Example A developing or emerging market is one characterized by high industrial growth. This implies increase in the industrial output and India has been going through rapid industrialization. It has seen a growth of around 27% percent in Industrial output which is second only to China. Growth in Industrial output means a great deal of wealth is being generated and looking at the statistics we can see that as a result this wealth generation there was a need of an organized financial system. As a result of the unprecedented growth that India experienced, many financial firms including banks, insurance companies, consumer banking firm sprouted to serve the increasing needs of Indians in order to properly utilize their newly-earned wealth. (Lei, 2007) Another feature of an emerging market is proper governance and India is being governed by a very rational and open-minded parliament. Some credit also goes to Indian army for that as India has never faced Military coups or any other embarrassing situation like that where power is snatched from the representative of the people and given to one sole dictator. This economics stability has earned India a title of "Largest democracy in the world". One must keep in mind is that economic stability is imperative for fast growth. The reason behind why countries around India who are blessed with the same natural characteristics as India and high populations have never been able to reach the level of India, when it comes to economic growth. Almost all countries surrounding India suffer from instable political system and periods of military coups occasionally, but the real credit goes to patriotic Indian army, which has never been temped into launching a coup against their own people. This has earned India a escalated position not only in the Asian economics but also in the world economics, where Indian case studies adorn the history, present and future. (theindianpolitics, 2009) A land of around 1.5 billion people, India's climb in the social and economic spheres has been tremendous over the past few years. During this time, India has grown from strength to strength. Proving all its doubters wrong, India is reaching great new heights at a very fast pace. This growth of India is not confined only to their economy, but let it be any facet; India is growing rapidly in an attempt to escalate to nadir. India is leaving its mark on just economic progress and development but all sphere of life or all fields where it can grow any further. For example, social growth of India can be judged by the fact that entire Asia is intimating European culture, but Europe and Western Nations are intimating India's culture. India's film industry, "bollywood" has penetrated western market and became the second largest film industry of the world after Hollywood. This great success of bollywood and Indian culture has given India exposure to far flung areas and contributed heavily in the recognition of India all around the world. As a result of all this factors and blessed with tremendous amount of useful natural resources, such as cheap and skilled labor, tropical climate, great fertile land etc. (Vyas, 2003) India has become a business hub and all trading and business activities are diverting towards India. Owing to all these factors and great trust shown by the foreign investor towards India, Bombay Stock Market is growing around 17% annually which is comparable to the richest stock markets like New York Stock Exchange (NYSE)