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As per the International Financial Institutions (IMF), India ranks 145th by nominal Terms and 122nd by terms Of GDP per capita (PPP). From 1947 through 1991, consecutive administrations advocated protectionist economic policies that included substantial government intervention and regulation. In the shape of both the License Raj, this is referred to as ‘dirigisme’. Following the conclusion of the Cold War and even a severe balance-of-payments problem in 1991, India adopted substantial economic liberalisation. Annual average GDP development has indeed been 6% to 7% since the beginning of the twenty-first century, and India has surpassed China as the world’s largest and fastest-growing economy from 2013 to 2018 and also in 2021.
The Indian economy’s long-term development prospects remain optimistic, thanks towards its young mortality and limited dependence ratio, robust savings and investment rates, and rising globalisation and access to global markets. Due to such disruptions of “demonetization” in 2016 and also the implementation of the Service tax in 2017, the growth shrank in 2017. Domestic personal consumption accounts for over 70% of India’s GDP. The country’s consumer segment is still the world’s sixth-biggest. With the exception of individual consumption, government expenditure, investment, and exports all contribute to India’s GDP. Pandemic had an impact on commerce in 2020, with India becoming the world’s 14th largest importer and 21st biggest supplier. Since January 1, 1995, India was an accession to the World Trade Organization.
FEATURES OF INDIAN ECONOMY
Inadequate per capita income
India is recognised around the world for having a low standard of living. The proportion of national income to population is known as per capita income. It provides an estimate of an Indian citizen’s annual earnings, albeit it might not reflect the real earnings of each individual. India’s per capita income is predicted to be 39,168 dollars in 2012-2013.
This equates to $3,264 each month. When we compare India’s per capita income to that of other nations, we can observe that India lags well behind them. For example, the United States’ at capita income is 15 times that of India, whereas China’s per income is just half that of the United States.
Population pressure is high.
After China, India is the world’s second most populous country. According to the 2011 census, India’s population is about 121 million people. Between 1990 and 2001, it climbed at a pace of 1.03 percent each year. The fundamental reason for India’s rapid population growth is that the mortality rate has dropped dramatically but the fertility rate really hasn’t. The death rate is the number of individuals
who dies per thousand of the population, whereas the birth rate is the amount of people who give birth per thousand of the inhabitants?
Inequality and poverty
According to government of India data, roughly 269.3 million Indians were impoverished in 2011-12. This amounted to almost 22% of India’s population. If a person cannot consume the requisite quantity of food to obtain minimum calories worth around 2400 in rural areas and 2,100 in urban areas, he or she is considered poor. To do so, the person needs first to earn enough money to purchase the necessary food products.
Economy that has been well planned
India has a centrally controlled economy. Since the first plan era between 1951 and 1956, it has been developing through five-year plans. The benefits of planning are widely established. The country establishes its objectives first and gives budgetary estimates to attain them through planning.
As a result, attempts are undertaken to mobilise from a variety of sources at the lowest possible cost. India has completed eleven five-year programs and is now working on the twelfth. After each plan, a review is conducted to assess the accomplishments and shortcomings.
As a result, the following strategy corrects the situation. Today, India is a developing economy that is often seen as a potential economic strength. India’s per capita income is increasing at a faster rate than before. India is regarded as a large market for a variety of goods. All of this is feasible because of India’s planning.
CONCLUSION
The economy of India has been characterized as “huge, complicated, and rising.” According to World Bank estimates centered on purchasing power (PPP), India was the world’s fifth-biggest economy in 1994 and therefore is anticipated to be the world’s fourth largest economy by 2020, after China, the United States, and Japan.
