INDIAN ECONOMY INTRODUCTION

  • Indian economy is the 11th largest economy of the world with a GDP (Gross Domestic Product) of 1.22 trillion dollars in 2009-10. 
  • Indian economy is still lagging behind in many spheres. Approximately 58.4% of the total working population is engaged in agriculture. The contribution of agriculture to the Gross Domestic Product in 2005-06 was 21%. 
  • More than half of India's working population is engaged in agriculture. 
  • In the UK and the USA only 2% to 3% of the working population is engaged in agriculture. Only the less developed countries have a high working population engaged in agriculture. For example, see the table below. 
  • At current Market Price GDP of India in 2009-10 was Rs. 16,64178 cr. 
  • GDP at factor cost (2004-05 pre) for 2009-10 was Rs. 4453064 cr. 
  • GDP growth raw is 7.2%.
  • After independence the basic economic structure of the country has become more powerful. In quantitative terms there has been substantial development. The annual growth rate, however, was 9.6% in 2006-07, as announced on January 31, 2008.

Important Facts Relating to the Characteristics of the Indian Economy 

  • The contribution of the agriculture sector to the national income is 17%. 
  • The contribution of the public sector in the gross production is less than 17%. 
  • Mixed economy means co-existence of public and private sectors. 
  • Average rate of annual increase in the GDP has been approximately 4.1% for the last 52 years. 
  • The best indicator of the economic development of any country is the per capita income. 
  • The data of estimation of India's national income are issued by the Central Statistics Organisation (CSO). 

Indian Economy Consists of Three Sectors 

  • Primary sector of the Indian economy comprises of agriculture and its related sectors. Approximately 17.10% of the GDP is from agriculture. 
  • Secondary sector of the Indian economy comprises of industry, manufacturing, electricity, etc. Its contribution to the GDP is approximately 28%. 
  • Tertiary sector of the Indian economy comprises of business, transport, communication, and service. Its contribution to the GDP is the highest (approximately 55%). 

Factors Important to the Economic Development of a Developing Country 

  • Natural resources 
  • Capital gain 
  • Skilled labour power 
  • Surplus sale of agriculture 
  • Justified social organisation 
  • Political freedom 
  • Freedom from corruption 
  • Technological knowledge and general education 
  • Infrastructure