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An economy is a system whereby goods are produced and exchanged. The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).
- The independence-era Indian economy before and a little after 1947 was inspired by the economy of the Soviet Union with socialist practices, large public sectors, high import duties and lesser private participation characterizing it, leading to massive inefficiencies and widespread corruption.
- However, later on India adopted free market principles and liberalized its economy to international trade. Following these strong economic reforms, the country’s economic growth progressed at a rapid pace with very high rates of growth and large increases in the incomes of people.
- India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. The growth was led primarily due to a huge increase in the size of the middle class consumer, a large labour force and considerable foreign investments. India is the fourteenth largest exporter and eleventh largest importer in the world.
- Recently India has become one of the most attractive destinations for investment owing to favourable government policies and reforms. The approval of Foreign Direct Investment (FDI) in several sectors have allowed investments to pour into the economy.
- ECONOMY TYPES There are three main types of economies: free market, command, and mixed …