Indian Economy

Indian Economy

India’s mixed economy combines features of both capitalist market economy and the socialist planned economy, but has shifted more towards the former over the past decade. The public sector generally covers areas which are deemed too important or not profitable enough to leave to the market, including such services as the railways and postal system.

The economy of India is based on Agriculture, handicrafts, textile, manufacturing, and a multitude of services. Two-third of Indian workforce still earning their livelihood directly or indirectly through agricultural services, this is a very well-known fact. The economy of India, measured in USD exchange-rate terms. Due to increase in number of educated populace the country became one of the outsourcing hubs. So the Information technology in India is playing a pivotal role in Indian economy.

The government was strict in control over private sector participation, foreign trade, and foreign direct investment. Early in 1990, India has gradually opened its markets through economic reforms by reducing government controls on foreign trade and investment.

The economy if India is based in part on planning through its five-year plans. It is developed, executed and monitored by the planning commission. The tenth five-year plan completed its term in March 2007 and the eleventh plan is currently underway.

First plan – 1951-1956
Second plan – 1956-1961
Third plan – 1961-1966
Fourth plan – 1969-1974
Fifth plan – 1974-1979
Sixth plan – 1980-1985
Seventh plan – 1985-1989
Between period– 1989-1991
Eight plan – 1992-1997
Ninth plan – 1997-2002
Tenth plan – 2002-2007
Eleventh plan – 2007-2012

The higher growth rates are resulted in sectors like, manufacturing, pharmaceuticals, biotechnology, nanotechnology, telecommunications, shipbuilding, aviations, tourism, and retailing. India faces a fast-growing population and the challenge of reducing economic and social inequality. Poverty plays a serious and problematic role.