India Economy Overview & Stats
Presently displaying a tremendous boom of 24% GDP by the end of 2006, Indian Economy had experienced various phases of ups and downs in its initial stages. The pre-colonial Indian economy was self-sufficient in every sense of the term with trade relations the world over. This constancy was distorted during the colonization period when the total Indian share in the world income fell to 3.8% in 1954 from a respectable 22.3% in 1700. The situation becomes better by a Five Year Plan which brought about a fast industrial development in the country. The development was such that it sent a wave in the market, from a mere 2.5% in 1951-52 GDP rise to 9% in 2005-06. Economic liberalization introduced by Man Mohan Singh in 1991 omen the economic reform movements which include financial liberalization, tax reforms and trade liberalization.
Indian economy has seen marvelous growth in the recent years and has placed itself at the twelfth position among the largest world economies. Although agriculture lies at the backbone of the economy, the total contribution of cities and towns accounts to 2/3rds of the total economy. India's trade share in that of the world is 1%. The list of import items includes crude oil, chemicals, machineries and so on and so forth.
In the recent years, the Indian economy has displayed an astounding growth. The best example is shown by the inflation target rising to 11%, the decade's highest level ever set by the RBI. Besides, the nuclear treaty signed with US would bring about a reduction in the demand for oil.
Investment has become indispensable for the development of the Indian economy. Railways, Airports, roads and ports are seen as strong areas, investment wherein will bear fruitful returns.
Following are the growth trends which economic scenario of India has seen over the years :
a) With the rise in growth by 7% the poverty has minimized to an extent but still a major part of the work is to be done.
b) Transformation in Indian Government's structure has been successful in gaining triumph over the growth restraints that it had been facing for some time now.
c) The formation of Gross capital in GDP jumped to 35.9% in 2006 from 22.8% in 2001.
d) The service sector is rising at a rate of 11.18% since 2007 and the industrial sector has a placed itself on 10.63% growth. The manufacturing sector has significantly shown a major rise in the growth rate from 8.98% to 12% as in 2006.
Most importantly, Indian Economy has to fight against some major challenges in front of it such as unemployment, population explosion, poverty and the vast difference between the growth rates of urban and rural regions.
To restore a firm growth to the Indian Economy some of the reforms that must be undertaken are :