The Indian Economy is the 11th largest in the entire world by “nominal GDP” and 4th largest by “purchasing power parity”. India’s varied economy is an assortment of agriculture, village farming, large number of industries, handicrafts and huge number of services.
Since 1990s, India began experiencing fast economic growth as a result of markets being opened up for global investments and competition. In the twenty first century, India is emerging as one of the economic powers with huge natural and human resources at its service. By the year 2008, India was successful in establishing itself as the “second fastest growing economy” of the world. The year 2009, however, saw a considerable slowdown in the growth rate of India’s GDP following the major recession and financial crisis in 2008 that affected the whole world terribly.
With the intention to maintain the economic growth at the time of recession, the Federal Authorities in India undertook diverse stimulus packages to increase the growth of the Indian Economy. The Indian Government raised the finance for the stimulas package by $100 billion. Presently, the central government is helping the states of India to meet the fiscal consolidation by improving the tax policies and administration, expenditure rationalization, budget management, financial management etc. Moreover to endow the country with sustainable and long term infrastructural growth, the government of India established the “India Infrastructure Finance Company Limited. As a result of this the disbursement is expected to touch Rs. 9,000 crores by the month of March, 2010.
According to the Central Statistical Organization, the GDP of the Indian Economy, 2010 is estimated to grow at the rate of 7.2%, while the service and industrial sectors are expected to grow by 8.7 and 8.2% respectively. India’s GDP grew by 6% in the later half of 2009, in comparison to the previous year. In the 3rd quarter of the year 2009-2010, economic activities like mining and quarrying grew by 9.6%, manufacturing by 14.3%, construction by 8.7%, trade, transport, hotels and communication at a rate of 10%, and finance, real estate, business services and insurance by 7.8%.
As per the “global competitiveness index” created by the “World Economic Forum”, India ranks forty nine among 133 nations in the years 2009-2010. This is due to the performance of India in various categories. These are exports, logistics, foreign tourist arrivals, telephone subscribers in the country, mutual funds, BPO sector, automobiles, gems and jewelry, tax, Indian drug market etc.
It is believed that the Indian Economy growth, 2010, will increase by 8.5% and by 10% in 2011-12. Agriculture is expected to contribute above 17.6% to the economy of India in the coming years. The predictions of the economists states that by the year 2020, India will emerge as one of the leading world economies.