The term “Indian economy” refers to the economic system of India, which is one of the largest and fastest-growing economies in the world. Ranked as the fifth-largest by nominal GDP, India is an emerging economic powerhouse with a diverse economic structure. As a developing country, India follows a mixed economy model, incorporating both public and private sector elements. While the government plays a significant role in regulating and overseeing essential sectors like defense, infrastructure, and transportation, it also encourages private enterprise and foreign investment to drive growth in other industries.
Historically, India’s economy was predominantly agrarian, with a large portion of the population engaged in agriculture. However, over the past few decades, the country has undergone significant economic transformations. This change was marked by the liberalization of the economy in the 1990s, which opened up markets, reduced trade barriers, and attracted foreign direct investment (FDI). These reforms played a key role in integrating India into the global economy and propelled growth in sectors such as technology, manufacturing, and services.
The services sector, particularly information technology (IT), telecommunications, and business process outsourcing (BPO), has emerged as a cornerstone of the Indian economy. In parallel, India’s industrial base has also expanded, with key areas like automobile manufacturing, pharmaceuticals, and steel production contributing to its development. This growth is further fueled by India’s large and growing domestic market, driven by an expanding middle class, rapid urbanization, and a young labor force.
India’s trade relations have evolved over the years, with significant partnerships formed with countries such as the United States, the European Union, and China. However, India faces a growing trade imbalance with China, importing more than it exports. Additionally, the depreciation of the Indian rupee has led to challenges like inflation and rising import costs.
Its difficult to provide a complete data analysis of India’s performance over the last 15 yrs comparing UPA 1,2 vis a vis NDA 1 ,2 here in this comment section.
Keeping in mind the following preconditions.
1.india as a federal structure politically.
2. Systemic and structural problems in society and govt functioning
3. Tax evasion and corruption at a personal level.
4. Dishonest private corporate governance ( previously business heads took it for granted).
5. Population, diversity vis a vis resources.
6. Democratic setup per se.
Economic development growth econometrics and public policy is not UPA VS NDA
Gdp growth rate is a dangerous wrong index. Specially in a country like india.
( MUST STUDY WHAT prof. J Stiglitz, dr b jalan, dr. Reddy etc. Have to say before resorting to politically motivated mud slinging) though capital formation is important through FII FDI.
We have enormous challenges ahead of us but we are improving! ( ALWAYS BEARING IN MIND WE ARE NOT CHINA AND CANNOT HAVE A CHINA MODEL OR POLICY HERE,STOP COMPARING ON A WRONG BENCHMARK AT THE VERY OUTSET) motivation and determination is important.
“Bipartisan” PUBLIC POLICY MAKING SHOULD BE THE DEBATE OF THE DECADE! GOING AHEAD FOR INDIA 2030.
we are seeing some deep structural changes in functioning and of the economy in general, this opens up huge opportunity to do reform for a sustainable development for the next 30 years without a PUBLIC DOLE POLICY)
I DON’T THINK 10% GDP on paper will actually make india the next superpower (genuinely on absolute terms) unless we are experts at micromanagement of resources ( read all central list and concurrent list) funding and accountability and public policy making with manufacturing keeping in mind. India cannot afford to be a service driven economy primarily as of today anymore.
Currently steps are being taken for the very long term impact that is self sustainable. (UPA also have done towards the same previously.)
Read more, study more and contribute more towards country building.
Do more at a personal level.
Kindly refrain from devaluing your country because you dont like a political party or have do PR! of your so called intelligence.
The baby is crying, and the explanations are all over but nobody seems to know the reason. The best that can be done to try everything and of course blame it on the GST and de-mo
When everyone is of the view that the economy is in a structural slowdown how can you say that nothing is wrong with it.
In the first place government does not even accept the degrowth till it becomes unmanageable and someone refuses to put comforting figures.
By the time they accept and act it is too late to produce results in the near term.And the actual situation on the ground is much more serious with people losing Jobs and families running out of cash.
People with education and secure jobs and savings will not understand and the government will continue to give out excuses and blame everyone from Nehru, UPA and Raghuram Rajan etc.
Things are bleak to even talk about 7 and 8 pc growth and 5 trillion economy is a distant dream.
It is easy to say things will turn around faster without any base .
You hav’nt seen anything yet With world wide estimated at over $250 trillion without taking into account derivatives what you are seeing is a tip of the melting iceberg.
The Govt PR dept will go into overdrive, but the BJP IT Trolls would go into hyperdrive .
Parents live in the gulf and they say this elite media hasn’t seen what a slowdown looks like. The gulf has been in a slowdown for like 3 years now. All expats ask why is the media fussing so much about it. Cycles are normal in a Debt Based Economic system. But then again, if they dont talk about it, how are they gonna get ad revenue. You say lets take high base year, They say lets take low base year. By this standard everythng is subjective.
Gulf is different from India being developed more, much lesser population poverty level never heard of and abundant natural resources like oil for such small countries.
We have huge population to feed mostly I’ll educated with no scope of work at the moment and then family incomes dipping so low that they can’t be fed.
Our economy needs to grow much higher than stastically and politically convenient to the government.to provide jobs and incomes to the poorest.
Low base effect producing higher growth ( figure ) next year brings to mind a puzzle we did as children. How do you make a stick longer without touching it ? By cutting the one placed next to it. 2. Blaming the global slowdown is a little unconvincing. That has started mainly in the last one year, since Trump started his trade war. Since I no longer watch TV debates, do not know how the slowdown is being spun.
I agree with you , nothing untoward has happened to either the world or indian economy to point to a structural slow down , this is just a cyclical phenomenon aided by GST and demo , We wlll surely come out of it , if the government helps in the NBFC recovery and there no more skeletons in the closet , then we can hope to recover to 7.5 % by 2021.