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Economy of The Republic of India

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Rank 11th (nominal) GDP/ 4th (PPP)
Currency Indian Rupee (INR) = 100 Paise
Labour force 467 million
Export goods software, petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures (US, UAE, China)
Import goods crude oil, machinery, gems, fertilizer, chemicals (China, Saudi Arabia, US, UAE, Iran, Singapore, Germany)

1. India's economy is the eleventh largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). Economists predict that by 2020, India will be among the leading economies of the world. India was under social democratic-based policies from 1947 to 1991(colonial period was from 1773 to 1947). The economy was characterised by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth. Since 1991, continuing economic liberalisation has moved the country toward a market-based economy. In recent years, Indian cities have continued to liberalize business regulations and by 2008, India had established itself as the world's second-fastest growing major economy.

 

2.Agriculture is the predominant occupation in India, accounting for about 52% of employment. India's total cultivable area is about 60% of total land area, which is decreasing due to constant pressure from an ever-growing population and increased urbanization. India is the largest producer in the world of milk, jute and pulses, and also has the world's second largest cattle population with 175 million heads. It is the second largest producer of rice, wheat, sugarcane, cotton and silk in the world. Textile manufacturing (woolens, hosiery, knitted garments, casual wear and sportswear) is the second largest source of employment after agriculture and accounts for 20% of manufacturing output, providing employment to over 20 million people (woolens, hosiery, knitted garments, casual wear and sportswear)

 

3.India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Though India is rich in Thorium, but not in Uranium, which it might get access to in light of the nuclear deal with US. India is rich in certain energy resources which promise significant future potential - clean / renewable energy resources like solar, wind, biofuels (jatropha, sugarcane).Major mineral resources include Coal (third-largest reserves in the world), Iron ore, Manganese, Mica, Bauxite, Titanium ore, Chromite, Natural gas, Diamonds, Petroleum, Limestone and Thorium. The growth in the IT sector is attributed to increased specialization, and an availability of a large pool of low cost, but highly skilled, educated and fluent English-speaking workers is relatively undeveloped, but growing at double digits. Some hospitals woo medical tourism, the rapidly-growing practice of travelling across international borders to obtain health care. The service sector makes up 34%.

 

4.Around half of Indian children are malnourished. The proportion of underweight children is nearly double that of Sub-Saharan Africa. However, India has not had any major famines since Independence. A 2007 report found that 65% of Indians, or 750 million people, lived on less than 20 (US$0.43) per day, with most working in "informal labour sector with no job or social security, living in abject poverty”. In spite of the high growth rate, the report stated that India would continue to remain a low-income country for decades to come but could be a "motor for the world economy" if it fulfills its growth potential

 


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