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2007-01-16 21:17:57 · 3 answers · asked by rock 1 in Social Science Economics

3 answers

India must develop a free market, while appearing to some as chaotic and unrestrained, this is actually guided to produce the right amount and variety of goods. If a product shortage occurs, for instance, its price rises, creating a profit margin that creates an incentive for others to enter production, eventually curing the shortage. If too many producers enter the market, the increased competition among manufacturers and increased supply would lower the price of the product to its production cost, the "natural price". Even as profits are zeroed out at the "natural price," there would be incentives to produce goods and services, as all costs of production, including compensation for the owner's labour, also built into the price of the goods. If prices dip below a zero profit, producers would drop out of the market; if they were above a zero profit, producers would enter the market.

While human motives are often selfish and greedy, the competition in the free market would benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. It follows that India needs to prevent the formation of monopolies.

India must rid itself of antiquated government restrictions, which hinder industrial expansion. All forms of government interference in the economic process, including tariffs, will create inefficiency and high prices in the long run.

The Indian Government needs to be active in sectors other than the economy: better public education of poor adults; a better judiciary; and an improvement in the armed forces, as well as other sectors of Indian culture.

2007-01-17 00:42:59 · answer #1 · answered by Danny99 3 · 0 0

develop it into what?

Another piggy, consumerist, energy-squandering slobborama like the West?

Keep outsourcing everything to them and allow them to flood into the country and complete their evil plan to take over all the filthy hotels and convenience stores, I guess. Build more shoe factories there. Convince them they need Hummers to drive up to the store for a dozen eggs. Get them in the handbasket to hell with the rest of us.

Oh, and teach them the cows are for eating. Just make sure they feed them a lot of steroids and antibiotics first.

2007-01-17 00:17:24 · answer #2 · answered by Anonymous · 0 1

Give them shitloads of cash and eliminate any environmental policies.

But I don't see what the point would be to develop India.

2007-01-16 21:21:49 · answer #3 · answered by Anonymous · 0 1

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