Economic Outlook of India
India the sub-continent with 3,287,590 square kilometer area and
1,132,446,000 population (1.1+ billion as estimated in 2008) is a
country dependent largely on agriculture for its income. The country
has occupied the second position in the world in the estimation of
total agricultural products per year. Along with agriculture the
other main sectors developed after India’s independence in 1947 are
industrial sectors, banking and finance as well as service sectors.
However, after the adoption of the free market policy and economic
liberalization around 1991, the country has augmented various other
sectors like Information Technology, Business Process Outsourcing,
Manufacturing, Telecommunication and Medical Tourism.
India’s first Prime Minister Jawaharlal Nehru along with Prasanta
Chandra Mahalanobish, the famous statistician attempted to implement
some measures of relaxation in privatisation of government’s role in
streaming the economic activities. The first implementation of
relaxation occurred around 1980 when the capacity expansion received
revitalization. This resulted into effective measures in controlling
price, depreciation of corporate duty and incumbent extension.
In 1991 the revolutionary change of economic policy has brought new
outlook with foreign direct investment ending the era of public
sectors’ monopoly and license requirements for import,
industrialization and investment. This has given birth to a mixed
economy of capitalist and socialist features. The GDP multiplied
with augmentation of development measures like food, shelter,
security, literacy and life expectancy. The real gross domestic
products increased from 200,000 crore rupees of 1950-51 to near
about 1,400,000 crore rupees of 2001-02. Agricultural growth was
from 2.5% in 1950s to 4.5% in 2002, while industrial sector
increased from 3.9% to 6.4% and service sectors from 2.7% to 7.8%.
This estimated the total growth rate from 3.5% to 5.9%.
However, along with this high development India still suffers from
primary developmental problems. The distribution of capital is
highly partial. The benefits of free market and foreign investment
do not reach a large population. People are still behind poverty
line with poor literacy rate. A slow market and slower growth rate
are predicted to influence the Indian economical outlook in near
The educated Indian Diaspora and local population is now driving
India into a prosperous Information Revolution age. There is now
increased focused on Manufacturing Activities in India in order to
support the local economies of states and localities.
Make in India is the new Policy to
transfer India into a Global Innovation and Industrial center.
Farming remains the primary means of income for many rural areas and
is an extremely important industry that feeds the Indian populace.
The recent measures to allow banking access to all farmers will
ensure that farmers have access to cheaper
capital and technology and that
they do not fall into the clutches of compound interest charging
money lenders. However, the conversations regarding Genetically
Modified Food and Food Exports are still caught in the cross fire
between Multi National Intellectual property premiums and Organic
farmer movements, with Bt Cotton being
the only exception.