Economy of India PDF Print E-mail
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Monday, 16 May 2011 21:03
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MumbaiAccording to the International Monetary Fund, India's nominal GDP stands at US$1.53 trillion, making it the tenth-largest economy in the world. With purchasing power parity (PPP), India's economy is the fourth largest in the world at US$4.06 trillion. With its average annual GDP growing at 5.8% for the past two decades, India is also one of the fastest growing economies in the world. However, India's per capita income is US$1,000, and the country ranks 138th in nominal GDP per capita and 129th in GDP per capita at PPP among all countries of the world.

Until 1991, all Indian governments followed protectionist policies that were influenced by socialist economics. Widespread state intervention and regulation caused the Indian economy to be largely closed to the outside world. After an acute balance of payments crisis in 1991, the nation liberalised its economy and has since continued to move towards a free-market system, emphasizing both foreign trade and investment. Consequently, India's economic model is now being described overall as capitalist.

With 467 million workers, India has the world's second largest labour force. The service sector makes up 54% of the GDP, the agricultural sector 28%, and the industrial sector 18%. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, and potatoes. Major industries include textiles, telecommunications, chemicals, food processing, steel, transport equipment, cement, mining, petroleum, machinery and software. By 2006, India's external trade had reached a relatively moderate proportion of GDP at 24%, up from 6% in 1985. In 2008, India's share of world trade was 1.68%; India was the world's fifteenth largest importer in 2009, and the eighteenth largest exporter. Major exports include petroleum products, textile goods, gems and jewelry, software, engineering goods, chemicals, and leather manufactures. Major imports include crude oil, machinery, gems, fertiliser, chemicals.

Last Updated on Tuesday, 17 May 2011 07:09