The economy of India ranks ninth in the world with a per capita income of $3, 586 as per the records of 2010. It is the second fastest growing major economy in the world. The population of India is more than 1.2 billion with an annual growth rate of 1.55% per year. The GDP of the nation is $1.632 trillion and the GDP growth rate is 8.5%. The services sector contributes to the 55.2% of the total GDP of the nation while the industry sector contributes 26.3% and agricultural sector 18.5%. Still 37% of the people live below the poverty line. More than 700 million people spend only $2 per day. As of September 2011 the inflation rate is 9.72%.

As per 2009 – 2010, India suffers from an unemployment rate of 9.4%. The main industries that contribute to the growth of economy of India are telecommunication, textiles, software, food processing, mining, petroleum, machinery, pharmaceuticals, cement, chemicals, iron and steel, etc. 52% of the total work force is employed in agricultural sectors and 14% in industries and 34% in services.

India exported $225.6 billion worth goods in 2010 and imported $357.7 billion worth goods. The major exports are petroleum products, precious stones, iron and steel, clothing and apparel, chemicals, machinery and vehicles. The major imports are crude oil, machinery, fertilizer, chemical, iron and steel and precious stones. USA ranks first in the trade partnership with India and then comes the United Arab Emirates, China, Saudi Arabia and Germany.

The natural resources of India are aluminum, bauxite, limestone, crude oil, diamonds, titanium ore, barite, chromite, thorium, mica, iron ore, coal and manganese. Textile industry ranks second in contributing to the economy of India and has provided employment for more than 20 million people. 20% of the manufacturing output comes from this sector. India is the largest producer of milk, jute and pulses in the world.

There are 20 nationalized banks in the country and the public sector banks has a share of over 75% in the total banking sector.25% of the domestic oil demand is met by the oil reserves within the nation located at the Mumbai High, Cauvery Delta and Krishna Godavari Basin and in Assam, Gujarat and Rajasthan.

Well educated people and their proficiency in English language is one of the boons to the nation and this has made India the major exporter of the software services. The information technology contributes 5.19% of the GDP of the country and has provided employment for 2.5 million people. India is one of the top five places where foreign investors want to invest that its FDI touched $5.65 billion in June 2011.

India has a place in the top 20 exporters of goods and top 10 exporters of services in the world. It is interesting to note that there are 2, 86, 000 millionaire households in India in 2011 which is expected to rise to 6, 94, 000 in 2020. The per capita wealth of the millionaires in India is $4.25 million which is much more than that of US and ranks first in the world. A slow and steady progress in the economy of India is a good sign of India, soon to become one of the super powers of the world.

Article Posted By : Sumazla  On November 25, 2011lView All Articles

Suhaina Mazhar is a freelance content writer and blogger with five years experience in content writing. http://sumazla.blogspot.com is her blog.

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