Economy of India

2374 WordsNov 21, 200510 Pages
November 5, 2005 Economic Growth and Development Economy of India The economy of India has seen an explosive amount of growth during the past few years. India 's economy is the fourth largest in the world in terms of purchasing power parity (PPP) followed by a Gross Domestic Product of $3.3 trillion. India also has 8.1% Gross Domestic Product growth rate, which is second in the world (Economy of India 2005). 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. However, India 's huge population results in a relatively low per capita income of $3,100 at PPP (Economy of India 2005). India has an extremely diverse economy which includes many areas…show more content…
The public sector controlled the large industries, telecommunications, and transportation systems of India. During the 1970 's India began to addressee the immense state control of the economy and sought to find ways of reducing government control. In the 1980 's India experience greater than average foreign aid to help funding in numerous development plans throughout the country (Economy of India: Analysis, Character and Structure 2000). As a result, when the price of oil rose sharply in August 1990, the nation faced a balance of payments crisis. The need for emergency loans led the government to make a greater commitment to economic liberalization than it had up to this time. In the early 1990s, India 's post-independence development pattern of strong centralized planning, regulation and control of private enterprise, state ownership of many large units of production, trade protectionism, and strict limits on foreign capital was increasingly questioned not only by policy makers but also by most of the intelligentsia (Economy of India: Analysis, Character and Structure 2000). Private and public industry employment in India(2003) No. of persons employed in non-agricultural occupations in Public and Private Sectors. Data source: Economic Survey (2004-05) India 's current population has continued to grow at a remarkable rate and is estimated at 1.027 billion people and has an annual growth rate of around 1.93% (1991-2001). This is down somewhat

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