Overview of Indian Economy

HISTORY OF INDIAN ECONOMY :

Indian Economy became the largest economy in the world per the latest report of the world Bank. But, India is still lagging behind the many spheres. Since 2007-2008, USA and European countries have been facing severe economic crisis, considered to be worst-ever economic crisis since the great depression of the 1930s. Indian Economy has faced many problems as export demand and many more. CHARACTERISTICS OF INDIAN ECONOMY : After India got independence, the basic economic structure of the country has became more powerful. In quantitative terms there has been substantial development. The annual growth rate, however was 8.0% during 2008-2009. Important and main characteristics and various aspects of Indian Economy are :

  1. Agrarian Economy
  2. Mixed Economy
  3. Developing Economy

There are many important fats relating to characteristics of Indian Economy, they are :-

  • Primary sector of Indian Economy is agriculture and the related sectors. The contribution of agriculture sector in GDP in 2008-2009 was 18.9℅.
  • Secondary sector of Indian Economy is related to Industry, manufacturing, electricity etc. It’s contribution to GDP is approximately 23.8℅.
  • Tertiary sector of Indian Economy is related to business, transport, communication and services. It’s contribution in GDP is approximately 57.3℅ in 2008-2009.
  • The contribution of public sector in the gross production is less than 20℅.
  • The best indicator of economic development of any country is per capita income.

The following factors are Important in Economic Development of a developing country are :

  1. Natural Resources
  2. Capital Gain
  3. Skilled Labour Force
  4. Surplus sale of agriculture
  5. Justified social organisation
  6. Political freedom
  7. Freedom from corruption
  8. Technological knowledge and general education.