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Friday August 22, 2008

India’s New Economy

Aman Singh

The new economy. New infrastructure, a new salary system, induction of credit lines, more cars, more brands, more diversification, more power, more control. When a new economy means abundance, affluence and more options, India’s newness is no exception.  The land of cheap labor and IT expertise has come far from its colonial past and traditional social norms.

A booming stock market, international investment, infrastructure modernization and many other factors have transformed this South Asian country into a thriving economy and a potential contender in the race to be the next economic superpower. With this transformation, has come a lifestyle boost for many of India’s residents.  Though it is critiqued often that the divide between the rich and poor has only widened as the economy prospers, it is evident to the residents of India that at the same time, many more opportunities are available today to the rural and urban poor to bridge that divide. Thanks to the emphasis on philanthropy and the rise in social awareness among the affluent, India’s poor are taking advantage of scholarships, grants and loans to have access to education and entrepreneurial opportunities.

Besides the obvious social awareness that is on the rise, India has slowly but surely turned the corner to become a consumer oriented market from a producer oriented one, where the buyer regulates pricing and distribution over a seller-biased economy. Today, consumers have the option to choose, bargain for the best deal, and favor retailers who bend the rules to meet their needs. With malls offering more choices along with the traditional corner shops, consumers are realizing their tremendous power to steer the market with their buying power.

Whereas rituals and habit retain their importance and symbolism, traditional and conservative thought is giving way to a modern way of thinking and an awareness that technology and a global presence is bridging gaps that people have been unable to navigate in the past. In a country where McDonald’s sells a vegetarian sandwich to cater to a huge population of vegetarian eaters, Barista operates like the American Starbucks, and the weekly sales of the western-style supermarkets generate more revenue than the now endangered mom-and-pop stores of India could ever hope to achieve.  Modernization has finally arrived at the average consumer’s doorstep. Though much of the expansion of choices remain localized to cities such as Bangalore, India’s Silicon Valley, and Ahmadabad, a city once known primarily for its businessmen, outlying villages are slowly becoming socially conscious, financially responsible and educationally forward.

Although India continues to depend on its agricultural market to a large extent, the dynamic interplay between  a traditional pre-technology market and the metro-oriented industrialized economy replete with a booming stock exchange, multinational companies and the latest technology and gadgets, is affording more and more Indians a chance to maintain a lifestyle only associated with the advanced west. Reliance Industries, Tata Motors, Infosys and many other Indian companies have been largely responsible for the country’s globalization.

At the same time, this transformation has brought with it side effects and lifestyle options that are beguiling the conservative, culturally-conscious middle-class Indian’s habits and routines. New generations are increasingly being torn between tradition and science. Options that did not belong to an Indian (because you are Indian, you cannot do this!) are now being explored and flaunted. The emigration boom is slowing down as the country realizes dreams can be achieved and possibilities can be explored without changing residences. With a more robust infrastructure in place and a government that is slowly churning the wheels to allow more corporate growth and expansion, today’s students are no longer thinking of progress, success and America in the same context.

A new economy. New choices, new habits and moderated views. The ability to debate and opine, the freedom to express and explore. The capacity to retain the traditional and greet the modern with open arms. This is India today.


This article marks the end of our series on India’s cultural revolution.




Aman Singh is an editor in New York City. She aspires to be a children’s books editor and writes about India and her Indian-ness with candor. Her free moments are spent wondering when the seven continents became one huge global mass of humans. She can be reached at as1808@nyu.edu


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