Position of Indian Sub-Continent

The Indian economy is one of the world’s fastest-growing economies. However, more than half of the Indian population come below the poverty line. This happens due to the unequal distribution of income in the economy. 

Today, in this article on the understanding of the Position of the Indian Sub-Continent in the World Economy, you will get detailed information on the Indian economy, India before forming the Indian economy, and other related topics. So, without further ado, let us introduce the Position of the Indian Sub-Continent in the World Economic in the business studies study material.

India – An Incredibly Diverse Nation 

India is poised to stand as one of the strongest nations in the upcoming decades with the maximum population. Today, it stands at number 10 position as the largest economy globally in regards to economies. With nearly 20% of the world’s total population of more than 1.5 billion people, nations comprising the Indian subcontinent rise rapidly. It is situated in the south of Asia, including nations like India, Pakistan, Sri Lanka, Bhutan, Maldives, Bhutan, and Bangladesh. 

Among all, the population of India is rising at a rapid speed that it is nearly impossible for other nations to touch it or even come closer to it. As a result, the Indian economy ranks at the 10th position as the world’s largest in terms of GDP. 

Not just in population, India is extremely huge when it comes to land as well, so whatever you utter from your mouth proves to be untrue. India is one of the most ethnically and religiously diverse nations with deep culture and values embedded in every Indian. Some Indians are extremely rich; however, there isn’t a perfect balance between rich and poor, which results in misleading. 

India is positioned as one of the most critical economies and is both a continuation of a long history and a recent development witnessed by the world and the citizens of India. Hundreds of years ago, during ancient times, India was under the hands of Britishers, and trading took place between major western empires such as India and the Roman Empire. 

India Before Forming the Indian Economy 

India got Independence on 15 August 1947 and woke up to a new country. The British ruled over India for more than 200 years, and finally, India got Independence after much hard work. Now, it was time for the economic development of India. There are several choices in front of the national planning committee of independent India. They need to decide the most suitable type of economic system which could contribute to the growth and economic development of the country. Also, a system that promotes the welfare of people.

Among all the different economic systems, Jawaharlal Nehru, the first minister of India, got intrigued by socialism. However, he did not want a similar kind of socialism established in the Soviet Union as his ideologies were way different. 

After Independence, there was no “private property” culture in India. It was nearly impossible for a democratic country like India to change its land ownership pattern. The National planning committee of independent India and Nehru decided to think creatively and came up with an extreme version of socialism and capitalism to solve this issue. 

Among all the different economic systems, Jawaharlal Nehru, the first minister of India, got intrigued by socialism. However, he did not want a similar kind of socialism established in the Soviet Union as his ideologies were way different. 

After Independence, there was no “private property” culture in India. It was nearly impossible for a democratic country like India to change its land ownership pattern. To solve this issue, the National planning committee of independent India and Nehru decided to think creatively and came up with an extreme version of socialism and capitalism. 

After three years of Independence, in 1950, the Planning Commission was initially established with the Chairperson, Jawaharlal Nehru, the Prime Minister of India. This marked the beginning of the era of five-year plans. Economic reforms since 1991 were a multidimensional package of various policies that helped in the country’s economic development.

India After Achieving Independence 

Since the time India achieved Independence, the Indian economy has grown immensely. According to reports, India was growing at the rate of 2% to 3% every year, annually; however, it is growing at the rate of 6% to 7% as of now. 

It is believed that if this growth continues, the Indian economy will stand as one of the most developed economies in the world. Yet, a huge number of Indians are still living under the poverty line, which indeed is heartbreaking. 

Economic Growth and Development 

Growth happens with time. It can be defined as the capacity of a country to produce high-quality goods and services to meet needs. It can be either measured by the productive capital stock or the size of several supporting services, including banking, transport, and so on. Economic growth can be defined as the continuous rise in the GDP or the Gross Domestic Product. 

The GDP refers to the market value of all the produced goods and services in the country in a year. Economic development refers to change in income, savings, and socio-economic structure of the country. Economic growth and development are significant in economics. 

Imagine GDP as a cake. As the size of the cake increases, GDP increases. The larger the cake is, the more people can enjoy it. The same goes for GDP. India is a highly populated country. Therefore it was necessary to produce goods and services in more significant numbers for the masses. The country’s total GDP is dependent majorly on three sectors, including the industrial sector, agricultural sector, and service sector.  

The total GDP of a country includes the contribution made by all three sectors of the economy. However, in countries like India, there can be a situation where one sector contributes more when compared to another. 

Conclusion 

After India got its Independence, Moderation started to take place at a rapid speed. While India might still seem to be far away from nations like the United States and the United Kingdom, it is continuously attempting to position itself on the top. We end our studies with the biggest economies in the world. In these notes, we studied the position of the Indian subcontinent.  

We covered India before Independence and after. Apart from this, we also mentioned the Position of the Indian Sub-Continent in the World Economy. We hope the Position of the Indian Subcontinent in the world economy study material must have helped attain a greater understanding of this topic.