The Indian economy has experienced a series of significant transformations in the last few decades. Among the most important of them is the growing phenomenon of globalization, liberalization and privatization has been immensely influencing the economy. The technological revolution has further provided new dimensions like E-banking, E-commerce, E-marketing, E-finance, E-investment, paperless trading and governance has been gaining importance of all over the world. These technological and global changes have been enhance the contribution of service sector above 70% in GDP.
The paper examines the new trends in the economy as well as the problems & solutions which can be effect GDP of our country and express the real economy growth means.
Current scenario and problems are as follows: Record high current account deficit, Problems in the US and Euro zone economies, High inflation, Governance, Renewed pressure of bad loans &bank asset quality, Credit rating, FDI, Adding pressure, Poor management &weak leadership, and outdated monetarist ideology. Recommendations and solutions are: Reducing subsidies, Improving supply side measures, Easing foreign investment restrictions, Implementation of economic reforms, Empowerment of the individuals, Support to backward state, Post-harvest management, Implementation of projects, Contribution of manufacturing sector in GDP and Implementation of GST. The economy can be divided in the entire spectrum of economic activity into real and monetary sectors. The real sector is where production takes place while the monetary sector supports this production and in a way is the means to the end. The last US, Europe crises & economy slow down shown how a fragile financial sector can wreak havoc on the rest of economy.
Keywords: Indian economy, GDP, Government and CAD.
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