Indian Economy

Current Status of Indian Economy- 

• The economy of India is the 12th largest economy in the world by market exchange rates and 4th largest economy of world by purchasing power parity (PPP) as per the latest report of World Bank. 
• Despite recent global economic recession, Indian Economy is growing at a healthy rate of 6% and considered as one of the fast emerging economy in world along with China, Brazil, South Africa and Mexico. 
• In the 21st century, India is an emerging economic power with vast human and natural resources, and a huge knowledge base. Economists predict that by 2020, India will be among the leading economies of the world. 
• However, Indian Economy is still lagging behind in many spheres like more than 60% of India’s total working population is still engaged into agricultural activates, while its contribution into GDP is only around 18%. India is a labor surplus country and problem of sectional unemployment still a matter of concern for GOI.
• India was under social democratic-based policies from 1947 to 1991. The economy was characterized by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the economy towards a market-based system. 
• A revival of economic reforms and better economic policy in 2000s accelerated India’s economic growth rate. By 2008, India had established itself as the world’s second-fastest growing major economy after China. India’s large service industry accounts for 54% of the country’s GDP while the industrial and agricultural sector contribute 29% and 17% respectively. 
• Agriculture is the predominant occupation in India, accounting for about 60% of employment. The service sector makes up a further 28% and Industrial sector around 12%.The labor force totals half a billion workers. India ranked 31st in Financial development index-2009 produced by World Economic Forum

Some Indicators of Indian Economy-

• GDP growth in 2008-09 6.7% [due to global recession]
• 10th Five year plan GDP-                            8% [targeted] 7.8% [achieved]
• 11th Five year plan GDP-                            9% [targeted]
• Per Capita Income-                                     $1070 [Rank 142nd]
• Labor Force-                                                Huge [Surplus]
• Inflation (CPI)                                              7.8% [2008] increasing every day
• Population BPL                                            22% [2008]