Macro USA And India Case Studies Flashcards
(20 cards)
How does GDP growth differ between USA and India?
USA: Stable growth (~2%) due to mature economy. India: Rapid but volatile growth (~6–8%) driven by services, tech, and infrastructure. Both saw rebounds post-COVID, but India’s was faster.
How do unemployment types differ between USA and India?
USA: More cyclical and frictional (tech changes, job switching). India: High structural and disguised unemployment, especially in rural and informal sectors (~90% of workforce).
What causes inflation in USA and India?
USA: Recent cost-push inflation (2022) due to supply chain issues and energy prices. India: Often food price-driven due to monsoon dependency. Both use interest rates to control CPI.
What’s the fiscal policy approach in USA and India?
USA: Biden’s stimulus + infrastructure bills. India: Capital expenditure focus—roads, rail, PM Gati Shakti. Both aim to stimulate AD and long-run growth.
What are recent monetary policy trends in USA and India?
USA: Federal Reserve hiked interest rates (up to 5.25% in 2023) to combat inflation. India: RBI raised repo rates (6.5%) for the same reason, but policy transmission is slower.
How do supply-side policies differ in USA and India?
USA: Tax incentives for manufacturing, tech R&D. India: ‘Make in India’ campaign, education reforms (NEP 2020), and digital infrastructure push.
What are the key components of AD in USA vs India?
USA: Consumption ~70% of GDP; India: Investment and government spending have larger role due to lower household income and welfare spending.
What are current account trends in USA and India?
USA: Persistent deficit (~3% of GDP) due to high imports. India: CAD fluctuates based on oil prices and remittances; 2023 saw a CAD of ~2% of GDP.
How do exchange rates behave in USA and India?
USD is strong and globally used. INR depreciates over time (USD/INR ~83), making imports costlier but exports more competitive.
How are development goals prioritised differently?
USA: Focus on income inequality, climate policy, and innovation. India: Basic infrastructure, health, education access, and job creation.
How do USA and India participate in globalisation?
USA: HQ for global MNCs (e.g. Apple, Microsoft); benefits from capital flows and IP. India: Benefits from outsourcing (IT, BPO); rising FDI but still protectionist in agriculture.
How do trade patterns differ in USA and India?
USA: Major importer, large trade deficit (~$900bn). India: Imports crude oil, gold; exports services and textiles. Trade deals shape both economies—USA active in reshoring, India cautious in RCEP.
What are the effects of protectionism in USA and India?
USA: Imposed tariffs on Chinese goods & steel (2018), aiming to protect jobs. India: Raised tariffs on Chinese electronics and dairy to support local producers.
How do exchange rates affect trade in USA and India?
USD appreciation makes exports less competitive. INR depreciation makes Indian exports cheaper but worsens import costs (especially oil).
How do USA and India differ in development indicators?
USA: High HDI (~0.92), high literacy & life expectancy. India: Medium HDI (~0.633), large rural-urban divide. Both show inequality—USA via income, India via access to services.
What strategies do India and USA use to promote development?
India: Focus on microfinance, infrastructure (Smart Cities), and FDI. USA: Emphasises innovation, trade agreements, and global aid (USAID).
What role do global institutions play in these economies?
USA: Major funder and influencer in IMF and World Bank. India: Major borrower historically; now pushes for multipolar leadership in institutions like BRICS and AIIB.
How do poverty and inequality differ in USA and India?
USA: 12% below poverty line, but high income inequality (Gini ~0.41). India: ~15% in poverty, but large informal sector and unequal access to education, health.
How does foreign direct investment differ in USA and India?
USA: Largest FDI recipient in developed world, especially in tech. India: Growing FDI (~$70bn in 2023), especially in digital, telecom, and manufacturing sectors.
How have both nations approached sustainability?
USA: Invests in green tech but politically divided. India: Expanding renewables (solar via International Solar Alliance), yet still reliant on coal (~70% of energy mix).
