What is the impact of international affairs on India's economy
Analyze the relationship between international affairs and India's economy, describing how global events and trends affect the country's economic performance.
- Trade agreements: India's economic performance is closely tied to its trade relationships with other countries. International trade agreements can create new business opportunities in India and drive economic growth. For example, the India-US Bilateral Trade and Investment Agreement could promote trade and investment between the two countries.
- Currency fluctuations: India's economy is affected by currency fluctuations in global markets. When the value of the Indian rupee decreases compared to other currencies, imports become more expensive and inflation can rise.
- Global trends: India's economy is also affected by broader global trends, such as the growing demand for renewable energy and the rise of e-commerce. India has the potential to benefit from these trends by investing in green technologies and developing a robust e-commerce industry.
- International sanctions: International sanctions imposed on India can have a negative impact on its economy. For example, sanctions on Iranian oil exports can increase oil prices in India, leading to higher inflation and slower economic growth.
- Geopolitical tensions: Geopolitical tensions between India and other countries can also affect the economy. For example, tensions with China can lead to a decrease in foreign investment and trade between the two countries.
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