The Indian

economy
Made by : Sara Wael
Grade : 12
The economy of India
• The economy is characterized as a developing market
economy. It’s the world’s fifth-largest economy by nominal
GDP and the third largest by PPP ( purchasing power parity).
In 2018, India was ranked 142nd by GDP (nominal) and 119th
by GDP (PPP).
• From independence in1947 until 1991, the end of the cold
war and an acute balance of payments crisis in 1991 led to
the adoption of a broad program of economic liberalization.
• Since the start of the 21st century, annual average GDP
growth has been 6% to 7% and from 2014 to 2018, India
was the world’s fastest growing major economy , surpassing
China.
• Historically India was one of the largest economy in the
world for most of the two millennia from 1st until 19th century
Growth and declining rate of
the Indian economy
• India’s growth rate for the current year to
slowdown at 6 per cent from last year’s 7.4
percent, but the country will be the worlds
second fastest growing economy, lagging
by just a tiny fraction behind china
• China with a 6.1 percent growth rate for
2019 reclaims the title of the world’s
fastest growing economy by being ahead
of India by just 0.1percent.
India’s GDP
What the economy is
dependent on.
• India is an agricultural based country,
where more than 50% of the population is
depend on agriculture. This structure is the
main source of income. The commitment
of agribusiness in the national income in
India , it is said that agriculture in India is a
backbone for the Indian economy .
India’s reform plan
• The central point of the reforms was liberalization
of the economy, simplifying regulations , giving
more role to the private sector and opening up of
the economy to competition.
• The philosophy of the new economic policy was
enhancing competition based upon more market
orientation.
• 1. dereservation of the industrial sector
• 2.industrial delicensing policy
• 3. opening up of the economy to foreign
competition
• 4 liberalization of trade and investment
Road ahead
• India’s GDP is expected to reach US$ 6 trillion by
FY26 and achieve upper-middle income status on
the back of digitization, globalization, favorable
demographics, and reforms.
• India is also focusing on renewable sources to
generate energy. It is planning to achieve 40
percent of its energy from non fossil sources by
2030 which is currently 30 percent and also have
plans to increase its renewable energy capacity
from to 175GW by 2022
• India is expected to be third largest consumer
economy as its consumption may triple to US$ 4
trillion by 2025.
THE END