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Indian
Economy
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Indian Economy Almost every thing is big about India. India is the seventh largest and second most populous country in the world. It has 16 % of the world's population and 12 % of the world's arable land. It also is the fourth largest economy based on GDP (PPP). India has been an active participant in World Trade from time immemorial. Indian crafts, spices, jewelry and precious stones conquered Western countries through land and sea routes for millennia. Home to oldest civilizations, India has vibrant commercial activities going on as early as 2500 BC. Concepts as Entry Tax, Production Tax and Exports Tax were common in the Indus Valley civilization (2500-1500 BC). India had been a well sought after destination for trade and commerce. Ironically, its richness also attracted the invaders in hordes. After independence in 1947, the Government of India chose the model of import substitution and of a mixed economy guided by socialistic principles. Government embarked upon creating first the industrial infrastructure power plants, steel mills, ports etc. and later, around 1970s entered into seemingly every commercial activity. Though, the private sector was never annihilated completely, India's historical entrepreneurial skills were somewhat throttled. After following inward looking economic policies for half a century, India embarked upon economic reforms in 1991. The spirit of economic freedom is now stirring in the country, bringing sweeping changes in its wake. A series of ambitious economic reforms aimed at deregulating the country and stimulating foreign investment has moved India firmly into the front ranks of the rapidly growing Asia Pacific region and unleashed the latent strengths of a complex and rapidly changing nation. For over a decade, India has been one of the few countries where the growth rate has been 6% or above and during the last couple of years, second only to China. The contradictions have not yet been smoothened though; one third of population below the poverty line and one third - almost the size of E.U. or US, having the purchasing power as much as in these countries. Third largest pool of trained manpower, blooming service sector and fairly diversified industrial sector, yet 70 % of population still engaged in agriculture. Things are changing for better, however, and fast. India's dynamic private sector accounts for over 75% of its Gross Domestic Product and offers business opportunities for everybody. Today, India is one of the most exciting emerging markets in the world. Skilled managerial and technical manpower that match the best available in the world and a huge middle provide India with a distinct cutting edge in global competition. Highlights:
-- Fairly mature
financial sector and dynamic capital market. A country of
billion people and a billion opportunities! Important Indicators
Foreign Investment Investing
in India Other resources Overview
of Indian economy
Last updated on 4th june 2004 |
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