How Can You Improve The Economic Growth Of A Country?

Whether it's India or the United States of America, every nation aims to increase economic growth and enhance the standard of living. Do you agree?

An increase in a country's overall GDP (Gross Domestic Product) is known as economic growth—essential for any country. Even the overall development of the economy depends on it. 

Economic Growth – The Issue and Significance

Have you ever wondered why there is a need for economic growth? If an economy stagnates, unemployment rises. This means that the country will have an increasing population of unemployed individuals. Ultimately, this will lead to an increase in poverty, negatively affecting the standard of living. Do you know what that means? Your favorite delicacies will become expensive, and you won't be able to enjoy them. Your casual hangouts will become rare because people will start to save more. You won't be able to travel the way you used to, and there is a list of things that won't feel and be the same. Economic growth not only affects the economy but also impacts a specific individual and their standard of living. 

Economic growth is considered the key to eliminating poverty and ameliorating living standards. Swift positive economical changes can lead to the quick development of the infrastructure and educational institutes and even help with the welfare of the citizens. Economic growth aids in creating opportunities for better employment and gives young dedicated entrepreneurs a chance to build their businesses. Better economic growth leads to overall development and maturation. 

Ways to Promote Economic Growth

• Innovation – innovative ideas and start-ups boost economic growth. The ingenious ideas lead to creating greater value while encouraging entrepreneurship. It is a significant key to developing sustainable growth and development. 

• Globalization, Privatization, and Liberalization – the slur to enhance economic growth should not just stay in the hands of the government. It should be a joint responsibility of the intellectuals, entrepreneurs, politicians, and bureaucracy.

• Give the unemployed a chance to volunteer – the unemployed people are forced to stay at home, which makes them lose their skills. Letting them volunteer by shortening the duration of unemployment insurance will also help. They can increase connections in business and jobs by helping and putting their efforts into society. Also, they will learn new skills while polishing their existing skillset.  

• Use of proper leadership tactics – taking an actual step to move forward and taking the appropriate leadership role on various domestic or international issues is essential. Mobilizing support from like-minded countries through diplomacy and communication is necessary to solve the current problems on a global level through bargain. 

• Invest more in tourism – tourism is a key to making financial profits and revenue. If a country and government spend more on improving tourism by developing infrastructure and famous spots, it will entice more tourists. If we talk about India, the famous historical Taj Mahal has been a captivating tourist spot for centuries.

Factors that contribute to Economic Growth

• Productivity – the most significant factor focuses on how countries promote the selling of goods and services. Investing in education, health sectors, infrastructure, and research development is the best way to enhance productivity.

• Investment – the more you invest, the better results you will get—investments aid in promoting and creating jobs and innovation. Society and government officials must create a business environment to attract more foreign investors. 

• Trade – another vital key to economic growth is trade. An increase in exports will aid you in expanding the market and investing in new technology. Reducing tariffs and trade barriers leads to an increase in goods and services sold.

Conclusion 

Economic growth indicates an increase in efficiency and effectiveness using the least minimum of resources. The concept focuses on the country's innovation and how it consumes resources without waste. Every country requires economic growth to prevent adverse outcomes like unemployment, poverty, and inflation. Dr. Kinnari's book, Welcome to India, focuses on what factors positively impact India's economic growth, with some enchanting spots for tourists to visit. Get yourself a copy and get yourself filled with knowledge about India.