Economy of India

The economy of India is the fourth-largest in the world as measured by purchasing power parity (PPP), with a GDP of US $3.36 trillion. {{inote|worldbank-gdp|wb-gdp-1}} When measured in USD exchange-rate terms, it is the tenth largest in the world, with a GDP of US $691.87 billion {{inote|worldbank-gdp|wb-gdp-2}} (2004). India was the second fastest growing major economy in the world, with a GDP growth rate of 8.1% at the end of the first quarter of 2005–06. {{inote|reuters|gdp-growthrate}} However, India's huge population results in a relatively low per capita income of $3,100 at PPP. The country's economy is diverse and encompasses agriculture, handicrafts, industries and a multitude of services. Services are the major source of economic growth in India today, though two-thirds of Indian workforce earn their livelihood directly or indirectly through agriculture. In recent times, India has also capitalised on its large number of highly educated people who are fluent in the English language to become a major exporter of software services, financial services and software engineers.

Related Topics:
Purchasing power parity - GDP - Trillion - USD - Exchange-rate - 2005 - 06 - India - Per capita - Agriculture - Handicrafts - Services - English language - Software - Financial - Software engineers

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For most of India's independent history, a socialist-inspired approach was adhered to, with strict government control and regulation on private sector participation, foreign trade and foreign direct investment. Since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. Privatisation of public-owned industries and opening up of certain sectors to private and foreign players has proceeded slowly amid political debate.

Related Topics:
Socialist - Private sector - Foreign trade - Foreign direct investment - 1990s - Economic reforms - Privatisation

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The socio-economic problems India faces are a burgeoning population, lack of infrastructure, growing inequality, unemployment and poverty, which has seen a decrease of 10% since the 1980s.

Related Topics:
Infrastructure - Inequality - Unemployment - Poverty - 1980s

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