Indian Economy - Important Points
Indian economy is one of the fastest-growing economies in the world, with a nominal GDP of USD 2.7 trillion in 2020. It is classified as a developing economy and has been ranked as the fifth-largest economy in the world by nominal GDP and the third-largest by purchasing power parity. Here are some of the most important facts about the Indian economy that can be helpful for government exams in India:
Agriculture: Agriculture is a major contributor to the Indian economy, providing employment to over 50% of the country's population. India is the world's largest producer of spices, pulses, and milk, and the second-largest producer of fruits and vegetables.
Industry: India's industrial sector is dominated by manufacturing, which contributes over 17% to the GDP. The major industries in India include textiles, chemicals, steel, and automobiles.
Services: The services sector is the largest contributor to the Indian economy, accounting for over 55% of the GDP. The major services industries in India include IT and IT-enabled services, financial services, and tourism.
Foreign trade: India's foreign trade is driven by exports of services and goods. The major exports from India include petroleum products, gems and jewelry, and pharmaceuticals. The major imports into India include petroleum, electronic goods, and gold.
Infrastructure: India's infrastructure is rapidly developing, with significant investment in transportation, power, and telecommunications. The government's flagship programs like Bharatmala, Sagarmala, UDAN, and Digital India are aimed at boosting infrastructure development in the country.
Employment: India is home to a large workforce, with over 500 million people employed in various sectors. However, there is still a significant proportion of the population that is underemployed or unemployed.
Financial sector: The financial sector in India is well-developed, with a robust banking system, capital markets, and insurance industry. The Reserve Bank of India (RBI) is the country's central bank and regulates the monetary policy of the country.
Economic reforms: India has undergone significant economic reforms in recent years, with the government liberalizing the economy and attracting foreign investment. The New Economic Policy of 1991 was a major reform aimed at opening up the economy and increasing competition.
Poverty: Despite being a rapidly developing economy, India still has a significant proportion of the population living in poverty. The government has implemented several poverty alleviation programs, including the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the National Rural Livelihood Mission (NRLM).
International trade agreements: India is a member of several international trade agreements, including the World Trade Organization (WTO), the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These agreements are aimed at promoting international trade and investment.
The Indian economy is a diverse and rapidly developing economy that presents significant opportunities for growth and development. It is important for candidates preparing for government exams to be familiar with the key facts and trends in the Indian economy to be able to answer questions related to this subject area.