Macroeconomic Policies of India

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Table of Contents
Introduction......................................................................................................................................2
Goals are government policy objectives......................................................................................2
Instruments are the methods to attain these goals...................................................................2
Macroeconomic goals are major policy mechanisms accessible.............................................2
Macroeconomic Policy Objectives..............................................................................................3
The main goals are...................................................................................................................3
What does macroeconomic stability mean?................................................................................3
Methodology....................................................................................................................................3
Literature Review............................................................................................................................4
Competence Economics Understanding......................................................................................7
Recommendations........................................................................................................................7
Discussion & Analysis.....................................................................................................................8
Gross National Product (GDP)....................................................................................................8
The rate of unemployment...........................................................................................................9
Factor Inflation............................................................................................................................9
Request and disposable revenue................................................................................................10
What can the government do?...................................................................................................10
Currency policy.........................................................................................................................10
Policy on taxation......................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
The program in India is aimed at boosting the productive sector of India and increasing Indian
average consumer buying power. Amazon India said that it would begin the production of
gadgets in India. India and Kuwait resolved to set up a joint ministerial committee aimed at
strengthening links in the energy, trading, investment, labor and IT sectors. The purpose of the
legislation is to address long-standing requirements of the industry and to increase professional
jobs. According to the government, the measure would help insurers to raise extra money and to
overcome financial problems. It would assist to satisfy demand for medical supplies and
services. The bill is intended to improve the legislation to meet the health requirements of the
nation and to give employees with job options. India had an overall GDP increase of 0.4 per cent
in the third quarter of FY21. The IMF also anticipates that India would emerge as the rapidly
expanding economy in the next two years. By 2025, the Government of India will raise public
health expenditure to 2.5% of GDP. In order to double farmers' income by 2012, the government
budgeted Rs2.068 billion of 2019 spending. Indian economy has grown into the world's fastest
growing largest and is predicted in the next 10-15 years to be among the top three economic
powers. (Johnson, 2012).
Goals are government policy objectives
Instruments are the methods to attain these goals
For example, a low price inflation target can be wanted by the government. The major tool for
doing this is adjustments in interest rates in monetary policy. Fiscal policy could also be used to
accomplish this purpose. This is in the hands of the government. Supply-side strategy can also be
used to contain inflation and promote longer-run growth. The government might have another
goal to increase the income distribution. The policy tools would then be chosen to best serve this
goal, possibly an amendment to the income tax system or an increase in the national basic salary.
Macroeconomic goals are major policy mechanisms accessible
 Monetary policy — adjustments in interest rate, money and credit supplies and changes
in exchange rate value as well
 Tax policy — Changes in taxation, government spending, and borrowing
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 Supply - supplementary initiatives aimed at increasing the market's efficiency
Macroeconomic Policy Objectives
The main goals are:
 Low and stable inflation — the government's inflation target for the consumer price index
is 2.0 percent.
 Sustainable growth – real gross domestic product growth that is both inflation-
containment and environmentally friendly.
 Productivity enhancements - focused at boosting the competitiveness and performance of
global trade
 High employment - The government's goal is to increase employment and eventually
provide meaningful job for all capable and motivated individuals.
 Increased living conditions and decrease in relative poverty – Child and retiree poverty
levels are decreasing.
 Appropriate government financing - Taking state borrowing limitations and the total
national debt into consideration
What does macroeconomic stability mean?
In important indicators, such as price, employment, economic growth, rates of interest,
investment and trade, there is a lack of economic stability. All nations are experiencing an
economic cycle which follows the growth rate changes of the Gross Domestic Product of a
nation. (Barnett, 2002).
Methodology
This notion arose via an exchange of information. Similar presentations on behavior approaches
to research on energy and theory of practice, leading to further debate and cooperation. The data
from two primary sources are combined. First, a series of talks between the notes and the
transcribed records created. Their work currently focuses on behavioral insights with a
grounding in psychology and quantitative methodologies. This has created active relationships
with academia and takes a strong interest in behavioral and practical applications. The analysis
and argument are informed by auto-ethnographic reflections on almost a decade of work
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