3. Reread the Country Focus “India’s Economic Transformation,” and
answer the following questions:
a. What kind of economic system did India operate under during 1947–
1990? What kind of system is it moving toward today? What are the
impediments to completing this transformation?
b. How might widespread public ownership of businesses and extensive
government regulations have affected (i) the efficiency of state and
private businesses and (ii) the rate of new business formation in India
during the 1947–1990 time frame? How do you think these factors
affected the rate of economic growth in India during this time frame?
c. How would privatization, deregulation, and the removal of barriers to
foreign direct investment affect the efficiency of business, new
business formation, and the rate of economic growth in India during
the post-1990 period?
d. India now has pockets of strengths in key high-technology industries
such as software and pharmaceuticals. Why do you think India is
developing strength in these areas? How might success in these
industries help generate growth in the other sectors of the Indian
e. Given what is now occurring in the Indian economy, do you think the
country represents an attractive target for inward investment by
foreign multinationals selling consumer products? Why?