Economy of India

 Economy of India is characterised as a developing market economy. It is the world's fifth largest economy by nominal GDP and the third largest by purchasing power parity (PPP). 

According to

the IMF, on a per ca-pita income basis, India ranked 142nd by GDP (nominal) and 119th by GDP (PPP) per capita in 2018. From independence in 1947 until 1991, successive governments promoted

protectionist economic policies with extensive state intervention and regulation; the end of the Cold War and an acute balance of payments crisis in 1991 led to the adoption of a broad program of economic liberalisation. Since the start of the 21st century, annual average GDP growth has been 6% to 7%, and from 2014 to 2018, India was the world's fastest growing major economy, surpassing

China.Historically India was one of the largest economy in the world for most of the two millennia from 1st until 19th century.

The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings and investment rates, and is increasing integration into the global economy. The economy slowed in 2017, due to shocks of "demonetisation" in 2016 and introduction of Goods and Services Tax in 2017. Nearly 60% of India's GDP is driven by domestic private consumption and continues to remain the world's sixth-largest consumer market. Apart from private consumption, India's GDP is also fuel by government spending, investment, and exports In 2018, India was the world's tenth-largest importer and the nineteenth-largest exporter. India has been a member of World Trade Organisation since 1 January 1995. It ranks 63rd on Ease of doing business index and 68th on Global Competitiveness Report.  With 520-million-workers, the Indian labour force is the world's second-largest as of 2019. Since India has a vast informal economy,barely 2% of Indians pay income taxes. During the 2008 global financial crisis the economy faced mild slowdown, India undertook stimulus measures (both fiscal and monetary) to boost growth and generate demand; in subsequent years economic growth revived. According to 2017 Price water house Coopers (PwC) report, India's GDP at purchasing power parity could overtake that of the United States by 2050. According to World Bank, to achieve sustainable economic development India must focus on public sector reform, infrastructure, agricultural and rural development, removal of land and labour regulations, financial inclusion, spur private investment and exports, education and public health.

India's largest trading partners are China, USA, UAE, Saudi Arabia, Switzerland, Germany, Hong Kong, Indonesia, South Korea, and Malaysia. In 2018-19, the foreign direct investment (FDI) in India was $64.4 billion with service sector, computer, and telecoms industry remains leading sectors for FDI inflows. India has free trade agreements with several nations, including ASEAN, SAFTA, Mercuric, South Korea, Japan and few others which are in effect or under negotiating stage. The service sector makes up 55.6% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs majority of the labour force. The Bombay Stock Exchange and National Stock Exchange are one of the world's largest stock exchanges by market capitalisation. India is the world's sixth-largest manufacturer, representing 3% of global manufacturing output and employs over 57 million people. Nearly 70% of India's population is rural whose primary source of livelihood is agriculture, and contributes about 50% of India's GDP.[68] It has the world's seventh-largest foreign exchange reserves worth $440 billion. India has a high national debt with 68% of GDP, while its fiscal deficit remained at 3.4% of GDP. However, as per 2019 CAG report, the actual fiscal deficit is 5.85% of GDP.[69] India's government-owned banks faced mounting bad debt, resulting in low credit growth, simultaneously the NBFC sector has been engulfed in a liquidity crisis. India faces high unemployment, rising income inequality, and major demand slump. India ranks second globally in food and agricultural production, while agricultural exports were $38.5 billion. The construction and real estate sector is the second largest employer after agriculture, and a vital sector to gouge economic activity. The Indian textiles industry is estimated at $150 billion and contributes 7% of industrial output and 2% of India's GDP while employs over 45 million people directly. The Indian IT industry is a major exporter of IT services with $180 billion in revenue and employs over four million people.India's telecommunication industry is the world's second largest by number of mobile phone, smart phone, and Internet users. It is the world's tenth-largest oil producer and the third-largest oil consumer. The Indian automobile industry is the world's fourth largest by production. It has $672 billion worth of retail market which contributes over 10% of India's GDP and has one of world's fastest growing e-commerce markets. India has the world's fourth-largest natural resources, with mining sector contributes 11% of the country's industrial GDP and 2.5% of total GDP. It is also the world's second-largest coal producer, the second-largest cement producer, the second largest steel producer, and the third-largest electricity producer.                           

sectors of Indian Economy

Agriculture

Manufacturing and Industry

Defense

Electricity sector

Engineering

Gems and jewelry

Infrastructure

Petroleum products and Chemicals

Pharmaceuticals

Textile

Pulp and paper

Services

Aviation

Nationalization

De-regulation

Banking and financial services

Financial technology

Information technology

Insurance

Retail

Tourism

Media and Entertainment industry

Healthcare

Logistics

Printing

Telecommunications
Mining and Construction
Mining
Iron and steel
Construction
Foreign trade and investment
Foreign trade
Balance of payments
Foreign direct investment
Outflows
Remittances
Mergers and Acquisitions
Currency
Income and consumption
Poverty
Employment

   Economic issues

• Corruption
• Education
• Economic Disparities
• Security market
• World Class Infrastructure
• R&D Center