|
| :: :: Indian Economy |
|
Indian Economy |
|
The Indian economy is quite diverse and thus embraces a number of sectors, unified into a big whole. Going by the evaluation done by the Purchasing Power Parity (PPP), the economy of India has the distinction of being the fourth largest in the world. A GDP growth rate of 9.2% at the end of the second quarter of 2006-2007 makes India the second fastest growing major economy in the world.
In India, agriculture is the main source of earning a livelihood for almost 2/3rd of the total population. Other sectors and industries that play a key role in affecting the growth of economy include handicrafts, textile, manufacturing and a number of other services. At present, the service sector is fast growing and thus is of much significance. Besides, the advent of digital age has also invited a number of global companies to the country. And the huge number of English-speaking populace has contributed to the development of these companies a lot.
Major sectors that influence the economy of India are as follows:
Agriculture
The socio-economic growth of the country significantly depends of the agricultural sector. India acquires the second rank in the world in terms of the total farm output. The GDP growth of agriculture along with its associated sectors recorded 18.6% in 2005. The Five Year Plans have been of immense help, as the government has emphasised on the agricultural sector. Though a steady decline has been noticed in the last few years, the aforementioned sector is the largest in the country.
Industry
The second most important economic sector is the industrial sector, which, as per the factory output, earns the 14th position in the world. The government also plays a vital role by implementing industrialisation and protecting the sector from foreign rivalry. The industrial sector is the source of livelihood for around 17% of the total workforce.
Services
The service output makes India acquire the 15th rank worldwide. A continuous growth from 4.5% (1951-1980) to 7.5% (1991-2000) states that the services sector is also the fastest growing in the country. The extensive infrastructural development in the sector has a long way to go in future as well.
Banking & Finance
The banking and finance sector of India is the fourth important sector that affects the growth of Indian economy. The sector can be categorised into the organised and the unorganised sectors. The organised sector comprises private, public and commercial banks (along with co-operative banks). The indigenous bankers, moneylenders and non-banking financial companies fall into the category of unorganised sector. |
|
|
