Since independence there has been lot of changes and reformations that have enhanced the image of our country in the global arena.We have, out of nowhere, come to a position which is worth seeing. Whether its technological advancement or industrial boom it has been a long and tough journey over these years which have boosted up our economy and have given India an international platform for becoming a developed nation from the current developing one. And today India enjoys the tag of being one of largest and fastest growing economies of the world.
Indian economy, basically an agro based economy, has its roots dated back to ancient times thousands of years before during the Indus valley civilization when people basically practiced agriculture, made sharp tools and domesticated animals for trade.The basic exports included silk, steel, handicrafts and textiles and agricultural products basiclly during the Mauryan Empire . In early medieval period during 1000 AD India was the world's largest economy with its gross domestic product or GDP 33% of the world GDP. During the Mughal period also India was one of the largest economies of the world. But industrially, India boomed during the British raj which saw development of large industries, railways, telegraph etc. This was indeed a revolution which had a lot benefits with more employment but also caused lot of famines due to deforestation. Basic export was that of food grains and the traditional money exchange and taxation systems included barter and zaminndari systems, but poverty then also remained a major hindrance in the path of economic development.
After independence there were lots of economic reforms made which helped in a lot of ways in boosting the economy. Basically from 1947 to late 1980's our economy was characterized by license raj systems with lot of trade tariffs, public ownership and slow growth. But with the economic reforms in 1991 India saw an emerging economy. With the liberalization globalization and privatization or LPG policy it enhanced foreign trade reducing trade tariffs. There were lot of foreign investments which enhanced our financial growth and today India is the 11th largest and 2nd fastest growing economy of the world with a net GDP of $1.3 trillion and growth rate of 8-9% on an average in the fiscal year.There were lot capital flow from foreign direct investments and exports as well as there were lot of imports from other countries. The major export partners are US, China and UAE whereas major import partners are China, US, Saudi Arabia and Germany.
Now lets briefly look into the different sectors of our economy which are the backbone of any nation's growth.
1) Agricultural sector or the primary sector
With a rural area of 70%, agriculture still remains the major occupation accounting to more than 50% employment followed by service sectors like banking and industrial sector. But services account to 55% of India's GDP followed by industries and agriculture. But India has the largest farm yield of the world and is self sufficient in rice grains and also exports outside.India is also one of the largest producers and exporters of wheat, cotton, silk and tobacco. This has been possible by various schemes providing subsidies to the farmers for use of better technology, fertilizers for better yield by the government since the Green revolution. But till now farmer suicide remains a major problem due to natural disasters like famine and floods and also due to non repayment of debt for which govt has many a times exempted the debt of the farmers taken from the govt.
2) Industrial sector or the secondary sector
Industrial sector accounts to 14% of employment and 28% of GDP. The major industries are telecomm., software,chemicals, pharmaceuticals and also automobiles. India is the 4th largest auto exporter in Asia and
the largest IT services exporter as far as outsourcing is concerned. But still small scale industries like textiles employs 1/3rd of total industrial force rest being medium scale and large scale. India is also rich in natural resources like iron ore, bauxite ore , manganese, coal and thorium reserves which is also enhancing growth of industries and better employment opportunities.Nuclear power plants, for eg:-are also being set up following the nuclear deal and with large thorium reserves in the country. Many projects have been set up and proposed including foreign projects which has boosted up the foreign direct investments.Foreign automobile companies have set up there plants in India and also several telecom and steel industries which has enhanced our economy in a large way. Petroleum refineries have also been set up by many oil exploring companies but the net output is not sufficient for the rising crude oil demand for which it is imported from other countries like Saudi Arabia.
3) Service sector or tertiary sector
This accounts to 34% of employment and 55% of the GDP. These basically includes banking sectors, IT services, finance sectors, hotel services etc which aim in providing service to consumers. India has largest human resources and cheap labor which has also made India stand in global platform by methods of outsourcing.
With no of exports listed above there are also lot things imported into the country starting from crude oil to automobiles. India being a developing nation is one of the largest consumer of crude oil and is thus imported. Lots of machineries are also imported for industries to run. Automobiles like cars are also imported for luxury purpose making India one of the largest importers of the world. The exchange rates and foreign investments and the economic policies by the govt have certainly made India an ideal place for a risk free investment which indeed is encouraging more and more investments both internal and foreign.
But still poverty, illiteracy and unemployment remain major problems on path of economic development. And financial issues like inflation, fiscal deficit, internal public debt through various bonds and
external debt have made things worse. The money in our country is very non uniformly distributed with one
being a billionaire and the other below poverty line with an income of less than $1 a day not able too fulfill there basic needs of life. These problems make the basically the lower class and the middle class to suffer which is the majority of population. About 20% of the population lives below poverty line creating a lot of contrasts and economic gap in the society. So even though we are one of the largest economies of the world we will really be large when everybody will have food to eat, a shelter to live and clothes to wear. then only we can dream of a prosperous India.
Indian economy, basically an agro based economy, has its roots dated back to ancient times thousands of years before during the Indus valley civilization when people basically practiced agriculture, made sharp tools and domesticated animals for trade.The basic exports included silk, steel, handicrafts and textiles and agricultural products basiclly during the Mauryan Empire . In early medieval period during 1000 AD India was the world's largest economy with its gross domestic product or GDP 33% of the world GDP. During the Mughal period also India was one of the largest economies of the world. But industrially, India boomed during the British raj which saw development of large industries, railways, telegraph etc. This was indeed a revolution which had a lot benefits with more employment but also caused lot of famines due to deforestation. Basic export was that of food grains and the traditional money exchange and taxation systems included barter and zaminndari systems, but poverty then also remained a major hindrance in the path of economic development.
After independence there were lots of economic reforms made which helped in a lot of ways in boosting the economy. Basically from 1947 to late 1980's our economy was characterized by license raj systems with lot of trade tariffs, public ownership and slow growth. But with the economic reforms in 1991 India saw an emerging economy. With the liberalization globalization and privatization or LPG policy it enhanced foreign trade reducing trade tariffs. There were lot of foreign investments which enhanced our financial growth and today India is the 11th largest and 2nd fastest growing economy of the world with a net GDP of $1.3 trillion and growth rate of 8-9% on an average in the fiscal year.There were lot capital flow from foreign direct investments and exports as well as there were lot of imports from other countries. The major export partners are US, China and UAE whereas major import partners are China, US, Saudi Arabia and Germany.
Now lets briefly look into the different sectors of our economy which are the backbone of any nation's growth.
1) Agricultural sector or the primary sector
With a rural area of 70%, agriculture still remains the major occupation accounting to more than 50% employment followed by service sectors like banking and industrial sector. But services account to 55% of India's GDP followed by industries and agriculture. But India has the largest farm yield of the world and is self sufficient in rice grains and also exports outside.India is also one of the largest producers and exporters of wheat, cotton, silk and tobacco. This has been possible by various schemes providing subsidies to the farmers for use of better technology, fertilizers for better yield by the government since the Green revolution. But till now farmer suicide remains a major problem due to natural disasters like famine and floods and also due to non repayment of debt for which govt has many a times exempted the debt of the farmers taken from the govt.
2) Industrial sector or the secondary sector
Industrial sector accounts to 14% of employment and 28% of GDP. The major industries are telecomm., software,chemicals, pharmaceuticals and also automobiles. India is the 4th largest auto exporter in Asia and
the largest IT services exporter as far as outsourcing is concerned. But still small scale industries like textiles employs 1/3rd of total industrial force rest being medium scale and large scale. India is also rich in natural resources like iron ore, bauxite ore , manganese, coal and thorium reserves which is also enhancing growth of industries and better employment opportunities.Nuclear power plants, for eg:-are also being set up following the nuclear deal and with large thorium reserves in the country. Many projects have been set up and proposed including foreign projects which has boosted up the foreign direct investments.Foreign automobile companies have set up there plants in India and also several telecom and steel industries which has enhanced our economy in a large way. Petroleum refineries have also been set up by many oil exploring companies but the net output is not sufficient for the rising crude oil demand for which it is imported from other countries like Saudi Arabia.
3) Service sector or tertiary sector
This accounts to 34% of employment and 55% of the GDP. These basically includes banking sectors, IT services, finance sectors, hotel services etc which aim in providing service to consumers. India has largest human resources and cheap labor which has also made India stand in global platform by methods of outsourcing.
With no of exports listed above there are also lot things imported into the country starting from crude oil to automobiles. India being a developing nation is one of the largest consumer of crude oil and is thus imported. Lots of machineries are also imported for industries to run. Automobiles like cars are also imported for luxury purpose making India one of the largest importers of the world. The exchange rates and foreign investments and the economic policies by the govt have certainly made India an ideal place for a risk free investment which indeed is encouraging more and more investments both internal and foreign.
But still poverty, illiteracy and unemployment remain major problems on path of economic development. And financial issues like inflation, fiscal deficit, internal public debt through various bonds and
external debt have made things worse. The money in our country is very non uniformly distributed with one
being a billionaire and the other below poverty line with an income of less than $1 a day not able too fulfill there basic needs of life. These problems make the basically the lower class and the middle class to suffer which is the majority of population. About 20% of the population lives below poverty line creating a lot of contrasts and economic gap in the society. So even though we are one of the largest economies of the world we will really be large when everybody will have food to eat, a shelter to live and clothes to wear. then only we can dream of a prosperous India.
its a true fact that India is rising in terms of economy but poverty,illiteracy and unemployement reamains main concern.We have to build the plateform to solve this problem...
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