Our Indian Economy is the fifth largest economy in the world with a GDP worth ＄2.94 trillion. PPP or the purchasing power parity, says how much money can buy in India compared to other countries. Our economy is the third largest with a worth of ＄10.51 trillion U.S. But, for a larger portion of India's population, the economy was only ＄6,209 (considering the PPP) per person per year in the year 2015.
The Indian economy includes the agricultural sector, handicrafts sector, industries, and a lot of other services. The service sector is the vital source of economic growth in our nation today, even if two-thirds of us, the Indian people earn their living directly or indirectly via agriculture. In these recent times, for the well-educated people, India became an information technology hub.
The major workers who form the working Indian population were and even now are still in connection with the agriculture sector. In the Indian economy the growing of crops, doing fishing, poultry, and also animal husbandry comes under the farming sectoral activities which are also undertaken by them. The people also manufactured handicraft items that were losing their importance with the advent of industrial goods. The demand for handicraft goods began to decline. The agricultural activities also failed to pay enough.
The government identified this problem as hindering the economic growth of the country and thus the government established policies to curb them. The government promoted the cottage industry, also provided fair wages to the labourers and provided enough means for the livelihood of the people. These were some of the policies that were laid by the government for the country’s economic growth.
The government of India even promoted the growth and upgradation of the small-scale and large-scale industry as they understood that agriculture alone will not be able to help the country’s large economic growth. Many of these industries were set up since the independence era. A large number of people in this attempt shifted from the agricultural sector to the industrial sector in order to earn better.
Today, we have a lot of large-scale industries that manufacture a large amount of raw material as well as other finished goods. The pharmaceutical industry, the iron and steel industry, the chemical industry, the textile industry, including the automotive industry, the timber industry, the jute, and the paper industry are the industries that promoted economic growth in a great and significant manner.
The service sector of India also contributed to the growth of our nation. The service sector has seen growth in the last few decades. The privatization of the banking and the telecom sector have in themselves had a positive and good impact on the service sector of the economy. The tourism industries and the hotel industries also visualized a gradual growth. As per a recent study, the service sector contributed more than 50% of the country’s economy with the growth in the sector.
After the demonetization, the worst affected people were the people from the rural areas who did not have access to proper internet and get the plastic money. This demonetization has affected many big and small businesses in the country. The industries in these sectors had to shut down as a result of this policy.
While the positive impact of the demonetization policy is that on the Indian economy there was a breakdown of black money, the decline in the fake currency notes, increase in the bank deposits, demonetization curbed the flow of black money in the real estate sector which ensured a fair play.
Many of the industries, however, were cash-driven hence, sudden demonetization left all these cash-earning industries starving.
India is an agriculturally based economy, the agricultural activities contributed about 50% of the economy. Agriculture involves growing and selling these crops, doing poultry, doing fishing, and cattle rearing, and animal husbandry.
People in India earn their own livelihood by engaging themselves in these agricultural activities. These activities are quite vital to our Indian economy.
The Indian economy has seen great growth in the last few decades. The credit for this economic boom largely goes to the service sector. Agriculture and its associated activities have also been improved to match the global standards and this export of the various food products has seen an upward trend thereby adding to the economic growth of the nation.
The Indian economy also undergoes several positive changes since the time of independence. This is growing at a good pace. However, the rural regions of this country are still in the developing process. The government is required to make efforts to improve the economic condition of the weaker areas.
Q1. What are Large-Scale Industries?
Ans. The industries with large capital requirements engaging strong manpower. These organizations have a fixed asset worth more than 10 crore rupees and are considered to be large-scale industries. In India, the large-scale industries are those industries that have a fixed asset which is more than one hundred million rupees or Rs. 10 crores.
Q2. In India Which Place is Known as the Industrial Hub?
Ans. Tamil Nadu is the state with the largest number of factories situated overall in India. Tamil Nadu is the capital city Chennai with the largest industrial and commercial centre in the whole of South India. India has 13 minor industrial regions located in 15 industrial districts.
Q3. How is the Indian Economy in Recent Times?
Ans. India's GDP was estimated at Rs. 33.14 trillion in the year 2011 and 2012, US＄452.74 billion for the second quarter of the FY2020-21, against Rs. 35.84 trillion US＄489.62 billion in the second quarter of FY2019-20.