About the Indian economy- The economy of India is the ninth-largest in the world by nominal GDP and the third-largest by purchasing power parity(PPP). India is the 19th-largest exporter and the10th-largest importer in the world. The independence-era Indian economy (from 1947 to 1991) was based on a mixed economy combining features of capitalism and socialism, resulting in an inward-looking, interventionist policies and import-substituting economy that failed to take advantage of the post-war expansion of trade.
This model contributed to widespread inefficiencies and corruption, and the failings of this system were due largely to its poor implementation. In 1991, India adopted liberal and free-market principles and liberalised its economy to international trade under the guidance of Former Finance minister Manmohan Singh under the Prime Ministry of P.V. Narasimha Rao, prime minister from 1991 to 1996, who had eliminated Licence Raj, a pre- and post-British era mechanism of strict government controls on setting up new industry.
Following these major economic reforms, and a strong focus on developing national infrastructure such as the Golden Quadrilateral project by Atal Bihari vajpayee, prime minister, the country’s economic growth progressed at a rapid pace, with relatively large increases in per-capita incomes.
General growth of the Indian economy in the last decade- The economic development in India followed socialist-inspired policies for most of its independent history, including state-ownership of many sectors. After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy. In the late 2000s, India’s growth reached 7.5%, which will double the average income in a decade.
The economic growth has been driven by the expansion of services that have been growing consistently faster than other sectors. It is argued that the pattern of Indian development has been a specific one and that the country may be able to skip the intermediate industrialization-led phase in the transformation of its economic structure. Serious concerns have been raised about the jobless nature of the economic growth
Primary Sector – Agriculture – sectoral growth rate, share in GDP Secondary sector- Manufacturing and mining- sectoral growth rate, share in GDP Tertiary Sector- Services- sectoral growth rate, share in GDP Conclusion
Comparison of overall growth of the 3 sectors- service sector has the most phenomenol growth in the last decade Effect of sectoral growth on the GDP and Economic Development