India is a country with history of several centuries and a land of many civilizations like Indu Valley Civilisation. The Indian Economy is the world's tenth-largest by nominal GDP and third-largest by Purchasing Power Parity(PPP). The main challenges in India are Poverty,Corruption,Malnutrition,Inadequate Public Healthcare and Terrorism. Indian economic growth can be divided in to two phases first one before 1991 and second after 1991. Since the economic liberalisation of 1991, India's GDP has been growing at a higher rate.
Growth
If we analyse Indian economy for last 60 years it grew to 7,00,00,000 millions indian rupee. From 1991 to 2010 it grew from 70,00,000 to 6,80,00,000 indian rupee. Nearly 10 times in 20 years.
Main components in Indian GDP are Agriculture(12%),Industry(28%),Mining and Quarrying(2%) and Services(48%). Agriculture growth declined and Services growth accelerated in last 20 years.
The past 20 years, India`s best, are the inflection point on the graph of India`s progress. It is the time-period (1991-till now) of the fastest rate of economic growth and the biggest jump in per capita income. These were the best 20 plus years for tax revenues, government spending, savings and investments, all of which lifted the economy`s size to above USD1 trillion.
The economy of India is now the tenth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).The country is one of the G-20 major economies and a member of BRICS.
India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. India has recorded a growth of over 200 times in per capita income in a period from 1947 (Rs 249.6) to 2011. The growth was led primarily due to a huge increase in the size of the middle class consumer, a large labor force,growth in the manufacturing sector due to rising education levels and engineering skills and considerable foreign investments.
The economy of India is now the tenth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).The country is one of the G-20 major economies and a member of BRICS.
India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. India has recorded a growth of over 200 times in per capita income in a period from 1947 (Rs 249.6) to 2011. The growth was led primarily due to a huge increase in the size of the middle class consumer, a large labor force,growth in the manufacturing sector due to rising education levels and engineering skills and considerable foreign investments.
Challenges
The main challenges in India are Poverty,Corruption,Malnutrition,Inadequate Public Healthcare and Terrorism. In 2010, the World Bank reported that 32.7% of the total Indian people fall below the International Poverty Line of US$ 1.25 per day while 68.7% live on less than US$ 2 per day and nation estimated to have a third of the world's poor. Even though government tried to reduce the poverty by using several programs and campaigns India still away to feed all citizens well.
Corruption in India is not allowing the fruits of Government programs to reach poor. Government is trying to give all subsidies and money directly to citizens to make sure that it is reaching the right people. Malnutrition is another problem in India which affects the health of human resource in the country. Due to malnutrition the country could not generate healthy and skillful human resource. Government is trying to address it using food security programs. Public Healthcare provisions are not good in most of the states in India and its citizens are not health conscious too. This situation increased the number of people with bad health and reduced the productivity of human resources.
Opportunities
India has huge potential to become a leading country in Wold Economy and become a country with high influence in World Economy and world affairs. India has more than 60% young population and enough natural resources to grow more than 8% per year. Today India is considered as a potential super power like other countries China,Brazil and Russia.
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