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{{Use Indian English|date =January 2015}}
{{Use dmy dates|date=January 2015}}
{{Infobox economy
|country = India
|image = Mumbai India Bridge.jpg
|gdp = $2.28 trillion (nominal; 2016)<ref name="ReferenceB">{{cite web|url=http://www.imf.org/external/pubs/ft/weo/2016/01/weodata/weorept.aspx?pr.x=45&pr.y=9&sy=2016&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&c=534&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a=|title=Report for Selected Countries and Subjects|publisher=IMF}}</ref><br>$8.64 trillion (PPP; 2016)<ref name="ReferenceB"/>
|gdp rank = [[List of countries by GDP (nominal)|7th]] (Nominal) / [[List of countries by GDP (PPP)|3rd]] (PPP)
|image_size = 300px
|alt = Economy
|caption = [[Mumbai]], [[Maharashtra]] is the financial capital of the Republic of India<ref name="ibef.org">{{cite web|url=http://www.ibef.org/states/maharashtra.aspx|title=Information About Maharashtra, Industries, Economy, Exports of Maharashtra|publisher=ibef.org|accessdate=2014-04-12}}</ref><ref name="books.google.co.in">{{cite book|title=Logistics Management for International Business: Text and Cases|author1=SUDALAIMUTHU, S.|author2=RAJ, S.A.|year=2009|publisher=PHI Learning|isbn=9788120337923|url=https://books.google.com/books?id=NG2TjfQF6zEC}}</ref>
|currency = [[Indian rupee]] (INR) ({{Indian Rupee}}) = 100 [[Paisa|Paise]]
1 USD = 66.78 {{Indian Rupee}} (05 June 2016) <br>{{DecreasePositive}} 0.6079 monthly change<br> {{increaseNegative}} 4.09 yearly change
|fixed exchange
|year = 1 April&nbsp;– 31 March
|organs = [[World Trade Organization|WTO]], [[South Asian Free Trade Area|SAFTA]], [[BRICS]], [[G-20 major economies|G-20]] and others
|growth = {{increase}} 7.9% ( FY 2015-16 Q4(Jan-Mar 2016)est.)<ref>{{cite web|title=Provisional Estimates of Annual Income 2015-16 and Quarterly Estimates of Gross Domestic Product, 2015-16|url=http://pib.nic.in/newsite/PrintRelease.aspx|website=pib.nic.in|accessdate=06 May 2016}}?relid=145814</ref>
|per capita = $1,747 (nominal; [[List of countries by GDP (nominal) per capita|129th]]<!--2013 rank-->; 2016)<ref name="ReferenceB"/><br> $6,598 (PPP; [[List of countries by GDP (PPP) per capita|108th]]<!--2013 rank-->; 2016)<ref name="ReferenceB"/>
|sectors = [[Agriculture]]: 16.1%<br />[[Industry]]: 29.5%<br />[[Service (economics)|Services]]: 54.4% (2015 est.)<ref>{{cite web|title=The World Factbook|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html|website=www.cia.gov|accessdate=28 April 2016}}</ref>
|components =
|inflation = CPI:{{IncreaseNegative}} 5.41%<br />WPI:{{DecreasePositive}}-1.99% (November 2015)<ref name=inflation>{{cite news|title=CPI inflation hits 14-month high of 5.41% in November|url=http://economictimes.indiatimes.com/news/economy/indicators/cpi-inflation-hits-14-month-high-of-5-41-in-november/articleshow/50179465.cms|accessdate=18 December 2015|work=The Economic Times|date=15 December 2015}}</ref>
| bankrate = {{DecreasePositive}}6.5% (as of 4 April 2016 )<ref name="bank rate">{{cite news|title=Ratios and Rates|url=http://m.moneycontrol.com/news/economy/rbi-surprises-cuts-repo-rate-by-50-bps-keeps-crr-at-4_3306181.html|accessdate=29 September 2015|work=Reserve Bank of India (RBI)|date=29 September 2015}}</ref>
|poverty = {{DecreasePositive}} 12.3% of population below poverty line of $1.25/day (2011-12, World Bank)<ref>{{cite web|url=http://www.theguardian.com/society/2015/oct/05/world-bank-extreme-poverty-to-fall-below-10-of-world-population-for-first-time|year=2015|publisher=Guardian|accessdate=10 Nov 2015}}</ref><ref>[http://wap.business-standard.com/article/economy-policy/india-s-poverty-rate-at-12-4-in-2011-12-115100600073_1.html]</ref>
|gini = 33.9 (2009)<ref name="GINI index">[http://data.worldbank.org/indicator/SI.POV.GINI GINI index] World Bank (2009-2012)</ref>
| hdi =
|labor = 502.1 million (2015 est.)<ref>{{cite web|title=The World Factbook - LABOR FORCE|url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2095rank.html|website=www.cia.gov|accessdate=28 April 2016}}</ref>
|occupations = [[Agriculture]]: 49%<br />[[Industry]]: 20%<br />[[Service (economics)|Services]]: 31% (2012 est.)
|unemployment = 3% Urban<br>2% Rural<br>Total=10.8 million<br>(2013, NSSO method)<ref name=toi1>{{cite web|last=ND Shiva Kumar|title=Unemployment rate increases in India|url=http://www.webcitation.org/6RKgcthkB|work=The Times of India|accessdate=23 May 2014|date=23 July 2013}}</ref>
|average gross salary = {{Increase}} $1.46 per hour ($3,036.8 yearly in 2010);<ref>[http://www.bls.gov/fls/india.htm International Labor Comparisons - India] Average Salary Tables, Bureau of Labor Statistics, US Government (2012)</ref> <br>GNI per capita: $1,631 yearly per person (2014);<ref name=wbpov>[http://data.worldbank.org/indicator/NY.GNP.PCAP.CD/countries GNI per capita, Atlas method (current US$)] World Bank (2014)</ref> <br>Average household income:
$8,671 yearly (2016)<ref>[http://www.euromonitor.com/medialibrary/PDF/Book_WCIEP0.pdf Table 3.4, World Consumer Income and Expenditure Patterns - Annual Household Income] Euro Monitor International (2013), pp 45</ref>
| gross median =
| average net salary =
|industries = [[software]], petroleum products, [[chemicals]], [[pharmaceuticals]], [[agriculture]], textiles, steel, transportation equipment, [[machinery]], [[leather]], cement, mining, construction<ref>[http://data.gov.in/catalog/gdp-india-and-major-sectors-economy-share-each-sector-gdp-and-growth-rate-gdp-and-other#web_catalog_tabs_block_10 GDP of India and major Sectors of Economy] Government of India (2013)</ref><ref name=moci>[http://www.dgciskol.nic.in/ Foreign Trade Performance of India Annual Report] Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry, Government of India (2012)</ref>
|edbr = 130<ref name=" World Bank and International Financial Corporation ">{{cite web|url= http://www.doingbusiness.org/data/exploreeconomies/india/ |title= Doing Business in India 2016|publisher=[[World Bank]]}}</ref> (2016)<br>({{increase}} 12 YoY)<ref name=eodb>{{cite news|title=India Moves Up in World Bank's Ease of Doing Business List|url=http://www.ndtv.com/india-news/india-ranks-130-in-ease-of-doing-business-report-jumps-12-spots-1237167|accessdate=15 November 2015|work=NDTV|date=28 October 2015}}</ref>
|exports = {{Increase}} $321.5 billion: merchandise exports<br>$155.6 billion: services exports<br>$477.1 billion: Total (2014)<ref name=wto-stat>[http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Country=IN&Language=F Trade Profile - India] World Trade Organization (2014)</ref>
|export-goods = [[software]], [[petrochemicals]], [[agriculture]], [[leather]], [[jewellery]], engineering goods,<ref name="ReferenceA">India's definition of engineering goods includes metal products, industrial machinery and equipment, auto and its components, and transport shipment equipment</ref> [[pharmaceuticals]], [[textiles]], [[chemicals]], [[transportation]], [[ores]] and other commodities<ref name=moci/>
|export-partners = {{flag|European Union}} 16.3%(2014)<ref name=wto-stat/><br> {{flag|United States}} 13.4% <br> {{flag|United Arab Emirates}} 10.4% <br> {{flag|China}} 4.2% <br> {{flag|Hong Kong}} 4.2%
|imports = {{increase}} $463&nbsp;billion: merchandise imports<br>$146.9&nbsp;billion: services imports<br>$609.9&nbsp;billion: Total (2014)<ref name=wto-stat/>
|import-goods = [[crude oil]], [[gold]] and [[precious stones]], electronics, engineering goods,<ref name="ReferenceA"/> [[chemicals]], [[plastics]], [[coal]] and ores, iron and steel, [[vegetable oil]] and other commodities<ref name=moci/>
|import-partners = {{flag|China}} 12.7% (2014)<ref name=wto-stat/><br> {{flag|European Union}} 10.5% <br> {{flag|Saudi Arabia}} 7.1% <br> {{flag|United Arab Emirates}} 5.9% <br> {{flag|Switzerland}} 4.6%
|FDI = Inflows: $261.7&nbsp;billion<br>Outflows: $129.8&nbsp;billion (2014 est.)
| NIIP = -$363&nbsp;billion (as of 31 March 2015)<ref name=niip>{{cite news|title=India’s International Investment Position (IIP), March 2015|url=https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=34315|accessdate=25 August 2015|work=Reserve Bank of India|date=30 June 2015}}</ref><br>({{increasenegative}} -$26.2&nbsp;billion YoY)
|debt = 64.9% of GDP (2014)<ref>{{cite web|title=World Economic Outlook Database, April 2015 - Report for Selected Countries and Subjects|url=http://www.imf.org/external/pubs/ft/weo/2015/01/weodata/weorept.aspx?pr.x=48&pr.y=7&sy=2013&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&c=534&s=GGXWDG_NGDP&grp=0&a=|publisher=[[International Monetary Fund]]|accessdate=4 July 2015}}</ref>
|deficit = 3.9% of GDP (2015–16)<ref>[http://www.imf.org/external/pubs/ft/scr/2014/cr1457.pdf India 2014 Article IV Consultation - Country Report 14/57] International Monetary Fund, page 6 (February 2014)</ref>
| current account = {{DecreasePositive}}1.3% of GDP ($27.5&nbsp;billion) (2014–2015)<ref name=cad>{{cite news|title=Current account deficit shrinks massively to 0.2% of GDP in Q4 of FY15: Reserve Bank of India|url=http://www.financialexpress.com/article/economy/january-march-current-account-deficit-narrows-to-0-2-pct-of-gdp-reserve-bank-of-india/82831/|accessdate=26 August 2015|work=The Financial Express|date=11 June 2015}}</ref>
| gross external debt = $461.9&nbsp;billion (as of 31 Dec. 2014)<ref name=debt>{{cite news|title=India’s External Debt As At End-December 2014|url=http://finmin.nic.in/the_ministry/dept_eco_affairs/economic_div/ExternalDebt_Dec14_E.pdf|accessdate=25 August 2015|work=Ministry of Finance, Government of India|date=March 2015}}</ref><br>({{increasenegative}}$34.53&nbsp;billion YoY)
|revenue = {{INRConvert|28.1|t}} (2015,IMF)<ref name="imf.org">[http://www.imf.org/external/pubs/ft/weo/2015/02/weodata/weorept.aspx?pr.x=94&pr.y=11&sy=2013&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&c=534&s=NGDP%2CNGDPD%2CGGR%2CGGR_NGDP%2CGGX%2CGGX_NGDP&grp=0&a= IMF]</ref>
|expenses = {{INRConvert|38.3|t}} (2015,IMF)<ref name="imf.org"/>
|aid = {{increase}}$2.43&nbsp;billion (2013)<ref name=worldbank1>{{cite web|title=Net official development assistance received (current US$)|url=http://data.worldbank.org/indicator/DT.ODA.ODAT.CD?order=wbapi_data_value_2012+wbapi_data_value+wbapi_data_value-last&sort=desc|publisher=[[World Bank]]|accessdate=20 October 2014}}</ref>
|credit = BBB- (Domestic)<br>BBB- (Foreign)<br>BBB+ (T&C Assessment)<br>Outlook: Stable<br>([[Standard & Poor's]])<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu?sectorName=null&subSectorCode=39&filter=I |accessdate=26 May 2011}}</ref>
|reserves = $361 billion (as of 1 May 2016)<ref name=forex1>{{cite news|title=Attempts to stabilise rupee reduced Forex reserves: Experts|url=http://economictimes.indiatimes.com/markets/forex/attempts-to-stabilise-rupee-reduced-forex-reserves-experts/articleshow/50696408.cms|accessdate=24 January 2016|work=The Economic Times|date=23 January 2016}}</ref> ([[List of countries by foreign-exchange reserves|9th]])<br>( {{decrease}}1.72&nbsp;billion WoW)<br>$25&nbsp;billion [[forward contract]]s (as of 24 August 2015)<ref name=forex2>{{cite news|title=RBI Guv Raghuram Rajan says will not hesitate to use forex reserves to curb rupee volatility|url=http://www.financialexpress.com/article/industry/banking-finance/rbi-will-not-hesitate-in-using-foreign-exchange-reserves-to-curb-indian-rupee-volatility-raghuram-rajan/124664/|accessdate=24 August 2015|work=The Financial Express|date=24 August 2015}}</ref>
|cianame = in
|spelling = Oxford
}}
The '''Economy of [[India]]''' is the [[List of countries by GDP (nominal)|seventh-largest]] in the world by [[gross domestic product|nominal GDP]] and the [[List of countries by GDP (PPP)|third-largest]] by [[purchasing power parity]] (PPP).<ref name=IMF_GDP>{{cite web|url=http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/weorept.aspx?pr.x=79&pr.y=7&sy=2012&ey=2015&scsm=1&ssd=1&sort=country&ds=.&br=1&c=534&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a=|title=India|publisher=International Monetary Fund|accessdate=2014-04-08}}</ref> The country is classified as a [[newly industrialised country]], one of the [[G-20 major economies]], a member of [[BRICS]] and a [[Developing country|developing economy]] with an average growth rate of approximately 7% over the last two decades. [[Maharashtra]] is the wealthiest Indian state and has an annual GDP of US$220 billion, nearly equal to that of [[Pakistan]] or [[Portugal]], and accounts for 12% of the Indian GDP followed by the states of [[Tamil Nadu]] (US$140 billion) and [[Uttar Pradesh]] (US$130 billion). India's economy became the world's fastest growing [[G20 major economies|major economy]] from the last quarter of 2014, replacing the [[People's Republic of China]].<ref>[http://www.dnaindia.com/money/report-india-clocks-75-growth-in-january-march-quarter-becomes-world-s-fastest-growing-economy-2090462 DNA,Indian economy overtaken china growth rate]</ref>

The long-term growth prospective of the Indian economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy.<ref>[https://www.cia.gov/library/publications/resources/the-world-factbook/geos/in.html CIA]</ref> The Indian economy has the potential to become the world's [[List of countries by GDP (nominal)|3rd-largest economy]] by the next decade, and one of the [[List of countries by GDP (PPP)|largest economies]] by mid-century.<ref>[http://thediplomat.com/2015/02/china-india-to-lead-world-by-2050-says-pwc/ The diplomat]</ref><ref>[https://www.linkedin.com/pulse/20141021025537-47732347-india-world-s-largest-economy-by-2050-citi-report The Linkedin]</ref><ref>[http://articles.economictimes.indiatimes.com/2015-04-13/news/61102759_1_global-economy-world-ranking-world-economy Times of India]</ref> And the outlook for short-term growth is also good as according to the IMF, the Indian economy is the "bright spot" in the global landscape.<ref>[http://www.imf.org/external/pubs/ft/survey/so/2015/car031115a.htm IMF,2015 Survey]</ref> India also topped the [[World Bank]]’s growth outlook for 2015-16 for the first time with the economy having grown 7.6% in 2015-16 and expected to grow 8.0%+ in 2016-17.<ref>[http://foreignpolicy.com/2015/06/11/india-tops-world-banks-growth-outlook-for-first-time-bomb-attack-on-afghan-news-agency-deadly-week-for-quetta-police-force/ Foreign Policy]</ref>

India has the one of fastest growing [[Service Sector|service sectors]] in the world with annual growth rate of above 9% since 2001, which contributed to 57% of GDP in 2012-13.<ref>[http://m.thehindu.com/business/budget/india-has-second-fastest-growing-services-sector/article6193500.ece The Hindu,India's Service Sector]</ref> India has become a major exporter of [[Information Technology|IT]] services, [[Business Process Outsourcing|BPO]] services, and [[software]] services with $167.0 billion worth of service exports in 2013-14. It is also the fastest-growing part of the economy.<ref name=ibnic1213>[http://simpleinterest.in/current-gdp-of-india/ Share of different sectors in Indian GDP] Chapter 10, Government of India (February 2014)</ref> The IT industry continues to be the largest private sector employer in India.<ref>[http://www.livemint.com/Industry/bCLOgyaLGiIi6TuhmN0S7J/Indian-IT-services-exports-seen-growing-1214-in-year-ahead.html Indian IT exports,Livemint, 2015]</ref><ref>[http://m.moneycontrol.com/news/economy/indias-services-exportjuly74-at-usd-1334bn_1179677.html Service Exports,2014,Money Control]</ref> India is also the fourth largest start-up hub in the world with over 3,100 technology start-ups in 2014-15<ref>[http://wap.business-standard.com/article/pti-stories/india-4th-largest-start-up-hub-in-world-eco-survey-115022700394_1.html Business Standard,India 4th largest start up hub]</ref> The [[agricultural sector]] is the largest employer in India's economy but contributes to a declining share of its GDP (17% in 2013-14). India [[List of largest producing countries of agricultural commodities|ranks second]] worldwide in farm output.<ref name=tet137>[http://articles.economictimes.indiatimes.com/2013-08-30/news/41618996_1_gdp-foodgrains-allied-sectors Agriculture's share in GDP declines to 13.7% in 2012-13] The Economic Times ppppppp</ref> The [[Industry]] sector has held a constant share of its economic contribution (26% of GDP in 2013-14).<ref>[http://simpleinterest.in/current-gdp-of-india/ Share of different sectors in indian gdp]</ref> The Indian auto mobile industry is one of the largest in the world with an annual production of 21.48 million vehicles (mostly two and three wheelers) in FY 2013-14.<ref>[http://www.ibef.org/industry/india-automobiles.aspx IBEF,Auto Industry].</ref> India has $600 billion worth of [[Retailing in India|retail market]] in 2015 and one of world's fastest growing E-Commerce markets.<ref>[http://www.ibef.org/industry/retail-india.aspx Retail Market,IBEF]</ref><ref>[http://wap.business-standard.com/article/companies/india-set-to-become-world-s-fastest-growing-e-commerce-market-115020601227_1.html Business Standard]</ref>

India's two major stock exchanges, [[Bombay Stock Exchange]] and [[National Stock Exchange of India]], had a market capitalisation of US$1.71 trillion and US$1.68 trillion respectively as of Feb 2015, which ranks [[List of stock exchanges|11th & 12 largest]] in the world respectively according to the World Federation of Exchanges.<ref name="bseindia.com">[http://www.bseindia.com/ BSE]</ref> India also home to world's third largest Billionaires pool with 111 billionaires in 2016 and fourth largest number of ultra-high-net-worth households that have more than 100 million dollars.<ref>http://www.thehindu.com/business/Economy/india-adds-27-new-billionaires/article8276674.ece</ref>

India is a member of the [[Commonwealth of Nations]],<ref>{{cite web | url=http://thecommonwealth.org/our-member-countries/india | title=India is a member of the Commonwealth of Nations | accessdate=21 April 2016}}</ref> the [[South Asian Association for Regional Cooperation]], the [[Non Aligned Movement]], the [[G20]], the [[G8+5]], the [[International Monetary Fund]], the [[World Bank]], the [[World Trade Organisation]], the [[Asian Infrastructure Investment Bank]], the [[United Nations]] and the [[New Development Bank|New Development BRICS Bank]].

==Overview==
The combination of [[protectionist]], [[import-substitution]], [[Fabian Society|Fabian socialism]], [[Social democracy|social democratic]]-inspired policies governed India for sometime after the end of British occupation. The economy was then characterised by extensive regulation, [[protectionism]], [[public ownership]] of large monopolies, pervasive corruption and slow growth.<ref name="oecd"/><ref name="nyt"/><ref name="potential">{{cite web|url=http://www.usindiafriendship.net/viewpoints1/Indias_Rising_Growth_Potential.pdf|title=India's Rising Growth Potential|format=PDF|publisher=Goldman Sachs|year=2007|accessdate=2009-06-21}}</ref> Since 1991, [[Economic liberalisation in India|continuing economic liberalisation]] has moved the country towards a [[market economy|market-based economy]].<ref name="oecd">{{cite web|url=http://www.oecd.org/dataoecd/17/52/39452196.pdf|format=PDF|title=Economic survey of India 2007: Policy Brief|publisher=[[OECD]]|accessdate=2009-06-21}}</ref><ref name="nyt">{{cite news|url=http://www.nytimes.com/1992/08/15/world/india-stumbles-in-rush-to-a-free-market-economy.html|title=India Stumbles in Rush to a Free Market Economy|newspaper=[[The New York Times]]|date=15 August 1992|author=Edward A. Gargan|accessdate=2011-01-17}}</ref> By 2008, India had established itself as one of the world's faster-growing economies. Growth significantly slowed to 6.8% in 2008–09, but subsequently recovered to 7.4% in 2009–10, while the [[fiscal deficit]] rose from 5.9% to a high 6.5% during the same period.{{sfn|Economic Survey|2010|pp=1–2}} India's [[current account deficit]] surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 2012–13, according to Government of India's Labour Bureau, was 4.7% nationwide, by UPS method;<ref name="jobless">{{cite web|url= http://labourbureau.nic.in/EUS_2012_13_Vol_1.pdf|title=Report on Employment & Unemployment Survey (2012–13)|publisher=Bureau of Labour Statistics, Indian Government|date= January 2014 |accessdate=2014-07-25}}</ref> and 3% by NSSO method.<ref name=toi1/> India's consumer price inflation ranged between 8.9 and 12% over the 2009-2013 period.<ref>[http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG Inflation, consumer prices (annual %)] The World Bank (2014)</ref>

==History==
{{Main|Economic history of India|Timeline of the economy of the Indian subcontinent}}

===Period up to 1793===
The citizens of the [[Indus Valley Civilisation]], a permanent settlement that flourished between 2800&nbsp;BC and 1800&nbsp;BC, practiced agriculture, domesticated animals, used uniform weights and measures, made tools and weapons, and traded with other cities. Evidence of well-planned streets, a drainage system and [[water supply]] reveals their knowledge of [[urban planning]], which included the world's first urban [[sanitation]] systems and the existence of a form of municipal government.<ref name="Discovery-1">{{cite book|author=Nehru, Jawaharlal|title=[[The Discovery of India]]|publisher=Penguin Books|year=1946|isbn=0-14-303103-1|authorlink=Jawaharlal Nehru}}</ref> <br />
[[File:Silk route.jpg|thumb|The [[spice trade]] between India and Europe was the main catalyst for the ''[[Age of Discovery]]''.<ref>{{cite book|last = Donkin|first = Robin A.|authorlink = Robin Donkin|title = Between East and West: The Moluccas and the Traffic in Spices Up to the Arrival of Europeans|publisher=Diane Publishing Company|date=August 2003|isbn = 0-87169-248-1}}</ref>]]

Maritime trade was carried out extensively between [[South India]] and [[Southeast Asia|southeast]] and West Asia from early times until around the fourteenth century AD. Both the [[Malabar Coast|Malabar]] and [[Coromandel Coast]]s were the sites of important trading centres from as early as the first century BC, used for import and export as well as transit points between the [[Mediterranean]] region and southeast Asia.<ref>{{Harvnb|Raychaudhuri|Habib|2004|pp=17–18}}</ref> Over time, traders organised themselves into associations which received state patronage. Raychaudhuri and Habib claim this state patronage for overseas trade came to an end by the thirteenth century AD, when it was largely taken over by the local Parsi, Jewish and Muslim communities, initially on the Malabar and subsequently on the Coromandel coast.<ref>{{Harvnb|Raychaudhuri|Habib|2004|pp=40–41}}</ref>

[[File:Atashgah-inscription-jackson1911.jpg|upright|thumb|left|[[Ateshgah of Baku|Atashgah]] is a temple built by Indian traders before 1745. The temple is west of Caspian Sea, between West Asia and Eastern Europe. The inscription shown is in Sanskrit (above) and Persian.]]
Other scholars suggest trading from India to West Asia and Eastern Europe was active between 14th and 18th century.<ref name="hanway1753">{{Citation | title=An Historical Account of the British Trade Over the Caspian Sea | first=Jonas| last=Hanway | year=1753 | publisher=Sold by Mr. Dodsley | isbn= | url=https://books.google.com/books?id=etApAAAAYAAJ | quote=''...&nbsp;The Persians have very little maritime strength&nbsp;... their ship carpenters on the Caspian were mostly Indians&nbsp;... there is a little temple, in which the Indians now worship''}}</ref><ref name="dale2002">{{Citation | title=Indian Merchants and Eurasian Trade, 1600–1750 | author=Stephen Frederic Dale | year=2002 | publisher=Cambridge University Press | isbn=0-521-52597-7 | url=https://books.google.com/books?id=GqEWw_54uVUC | quote=''...&nbsp;The Russian merchant, F.A. Kotov&nbsp;... saw in Isfahan in 1623, both Hindus and Muslims, as Multanis.''}}</ref><ref name="levi2002">{{Citation | title=The Indian diaspora in Central Asia and its trade, 1550–1900 | author=Scott Cameron Levi | year=2002 | publisher=BRILL | isbn=90-04-12320-2 | url=https://books.google.com/books?id=9qVkNBge8mIC | quote=''...&nbsp;George Forster&nbsp;... On the 31st of March, I visited the Atashghah, or place of fire; and on making myself known to the Hindoo mendicants, who resided there, I was received among these sons of Brihma as a brother''}}</ref> During this period, Indian traders had settled in [[Suraxanı raion|Surakhani]], a suburb of greater [[Baku]], Azerbaijan. These traders had built a Hindu [[Ateshgah of Baku|temple]], now preserved by the government of Azerbaijan. French Jesuit Villotte, who lived in Azerbaijan in late 1600s, wrote this Indian temple was revered by Hindus;<ref>{{cite book|author=J. Villotte|title=Voyage d'un missionnaire de la Compagnie de Jésus en Turquie, en Perse, en Arménie, en Arabie et en Barbarie, Paris|year=1730|url=https://books.google.com/?id=MQsPAAAAQAAJ&printsec=frontcover&dq=Voyage+d%25E2%2580%2599un+missionnaire+de+la+Compagnie+de+J%25C3%25A9sus+en+Turquie }}</ref> the temple has numerous carvings in [[Sanskrit]], dated to be between 1500 and 1745&nbsp;AD. The Atashgah temple built by the Baku-resident traders from India suggests commerce was active and prosperous for Indians by the 17th century.<ref name="jackson1911">{{Citation | title=From Constantinople to the home of Omar Khayyam: travels in Transcaucasia and northern Persia for historic and literary research | author=Abraham Valentine Williams Jackson | year=1911 | publisher=The Macmillan company | isbn= | url=https://books.google.com/books?id=Z4aBAAAAIAAJ }}</ref><ref name="forster1798">{{Citation | title=A journey from Bengal to England: through the northern part of India, Kashmire, Afghanistan, and Persia, and into Russia, by the Caspian-Sea | author=[[George Forster (traveller)|George Forster]] | year=1798 | publisher=R. Faulder | isbn= | url=https://books.google.com/books?id=CSkQAAAAYAAJ | quote=''...&nbsp;A society of [[Multan|Moultan]] Hindoos, which has long been established in Baku, contributes largely to the circulation of its commerce; and with the Armenians they may be accounted the principal merchants of Shirwan&nbsp;...''}}</ref><ref name="morier1818">{{Citation | title=A Second Journey through Persia, Armenia, and Asia Minor, to Constantinople, between the Years 1810 and 1816 | author=James Justinian Morier | year=1818 | publisher=A. Strahan | isbn= | url=https://books.google.com/books?id=VjdtPAAACAAJ}}</ref><ref name="usgovt1887hd">{{Citation | title=Reports from the consuls of the United States, 1887 | author=United States Bureau of Foreign Commerce | year=1887 | publisher=United States Government |url=https://books.google.com/books?id=KBASAAAAYAAJ | quote=''...&nbsp;Six or 7&nbsp;miles southeast is Surakhani, the location of a very ancient monastery of the fire-worshippers of India&nbsp;...''}}</ref>

Further north, the [[Saurashtra (region)|Saurashtra]] and [[Bengal]] coasts played an important role in maritime trade, and the [[Gangetic plains]] and the [[Indus valley]] housed several centres of river-borne commerce. Most overland trade was carried out via the [[Khyber Pass]] connecting the [[Punjab region]] with Afghanistan and onward to the Middle East and Central Asia.<ref>{{Harvnb|Raychaudhuri|Habib|2004|pp=10–13}}</ref> Although many kingdoms and rulers issued coins, [[barter]] was prevalent. Villages paid a portion of their agricultural produce as revenue to the rulers, while their craftsmen received a part of the crops at harvest time for their services.<ref name="Dutt-1">{{Harvnb|Datt|Sundharam|2009|page=14}}</ref>
{{multiple image
|width=120
|image1 = MauryanCoin.JPG|caption1=Silver coin of the [[Maurya Empire]], 3rd century BC.
|image2 = Silver Coin of Kumaragupta I.jpg|caption2=Silver coin of the [[Gupta dynasty]], 5th century AD.
}}
Sean Harkin estimates China and India may have accounted for 60 to 70 percent of world GDP in the 17th century.<ref>{{cite journal|title=Will China really dominate|first=Sean|last=Harkin|journal=World Finance|date=19 April 2012|url=http://www.worldfinance.com/columnists/will-china-really-dominate}}</ref>

The Mughal economy functioned on an elaborate system of [[coin]]ed currency, land revenue and trade. Gold, silver and copper coins were issued by the royal [[mint (coin)|mints]] which functioned on the basis of [[Commodity money|free coinage]].<ref>{{Harvnb|Raychaudhuri|Habib|2004|pp=360–361}}</ref> The political stability and uniform revenue policy resulting from a centralised administration under the Mughals, coupled with a well-developed internal trade network, ensured that India, before the arrival of the British, was to a large extent economically unified, despite having a traditional agrarian economy characterised by a predominance of [[subsistence agriculture]] dependent on primitive technology.<ref>{{Harvnb|Kumar|2005|p=3}}</ref> After the decline of the [[Mughals]], western, central and parts of south and north India were integrated and administered by the [[Maratha Empire]]. After the loss at the [[Third Battle of Panipat]], the Maratha Empire disintegrated into several confederate states, and the resulting political instability and armed conflict severely affected economic life in several parts of the country, although this was compensated for to some extent by localised prosperity in the new provincial kingdoms.<ref>{{Harvnb|Kumar|2005|pp=5–8}}</ref> By the end of the eighteenth century, the British [[East India Company]] entered the Indian political theatre and established its dominance over other European powers. This marked a determinative shift in India's trade, and a less powerful impact on the rest of the economy.<ref>{{Harvnb|Kumar|2005|p=26}}</ref>

===British Era (1793–1947)===
{{quotation| There is no doubt that our grievances against the British Empire had a sound basis. As the painstaking statistical work of the Cambridge historian Angus Maddison has shown, India's share of world income collapsed from 22.6% in 1700, almost equal to Europe's share of 23.3% at that time, to as low as 3.8% in 1952. Indeed, at the beginning of the 20th century, "the brightest jewel in the British Crown" was the poorest country in the world in terms of per capita income.|[[Manmohan Singh]]<ref name="Hindu">{{cite news|title=Of Oxford, economics, empire, and freedom|newspaper=The Hindu|url=http://www.hindu.com/2005/07/10/stories/2005071002301000.htm|location=Chennai|date=2 October 2005|accessdate=2010-12-06}}</ref>}}

From the beginning of 19th century British East India Company's gradual expansion and consolidation of power brought a major change in the taxation and agricultural policies, which tended to promote commercialisation of agriculture with a focus on trade, resulting in decreased production of food crops, mass impoverishment and destitution of farmers, and in the short term, led to numerous famines.<ref>{{Harvnb|Roy|2006|pp=158–160}}</ref> The economic policies of the [[British Raj]] caused a severe decline in the [[handicrafts]] and [[handloom]] sectors, due to reduced demand and dipping employment.<ref>{{Harvnb|Kumar|2005|pp=538–540}}</ref> After the removal of international restrictions by the [[East India Company#Charter Act 1813|Charter of 1813]], Indian trade expanded substantially and over the long term showed an upward trend.<ref>{{Harvnb|Kumar|2005|pp=826–827}}</ref> The result was a significant transfer of capital from India to England, which, due to the colonial policies of the British, led to a massive drain of revenue rather than any systematic effort at modernisation of the domestic economy.<ref>{{Harvnb|Kumar|2005|pp=876–877}}</ref>
[[File:1700 AD through 1950 AD per capita GDP of United Kingdom and India during the Colonial Era.png|thumb|left|280px|Estimated per capita GDP of India and United Kingdom from 1700 to 1950, inflation adjusted to 1990 US$.<ref>Maddison A (2007), Contours of the World Economy I-2030AD, Oxford University Press, ISBN 978-0199227204. The data tables from this book are available online here [http://www.ggdc.net/maddison/oriindex.htm]</ref> Other estimates<ref name="Kumar-3">{{Harvnb|Kumar|2005|page=422}}</ref> suggest a similar stagnation in India's per capita GDP and income during the colonial era.]]
British territorial expansion in India throughout the 19th century created an institutional environment that, on paper, guaranteed [[property rights]] among the colonisers, encouraged [[free trade]], and created a single currency with [[fixed exchange rates]], standardised weights and measures and [[capital market]]s within the company held territories. It also established a system of [[Rail transport in India|railways]] and telegraphs, a civil service that aimed to be free from political interference, a common-law and an adversarial legal system.<ref>{{Harvnb|Roy|2006|pp=291–292}}</ref> This coincided with major changes in the world economy&nbsp;– industrialisation, and significant growth in production and trade. However, at the end of colonial rule, India inherited an economy that was one of the poorest in the developing world,<ref name="roy-2">{{Harvnb|Roy|2006|p = 1}}</ref> with industrial development stalled, agriculture unable to feed a rapidly growing population, a largely illiterate and unskilled labor force, and extremely inadequate infrastructure.<ref name="AtIndependence">{{Harvnb|Datt|Sundharam|2009|p=179}}</ref>

The 1872 census revealed that 91.3% of the population of the region constituting present-day India resided in villages,<ref name="non-urban">{{Harvnb|Kumar|2005|p=519}}</ref> and urbanisation generally remained sluggish until the 1920s, due to the lack of industrialisation and absence of adequate transportation. Subsequently, the policy of discriminating protection (where certain important industries were given financial protection by the state), coupled with the Second World War, saw the development and dispersal of industries, encouraging rural-urban migration, and in particular the large port cities of [[Bombay]], [[Calcutta]] and [[Madras]] grew rapidly. Despite this, only one-sixth of India's population lived in cities by 1951.<ref>{{Harvnb|Kumar|2005|pp=520–521}}</ref>

The impact of British occupation on India's economy is a controversial topic. Leaders of the [[Indian independence movement]] and [[economic history|economic historians]] have blamed colonial rule for the dismal state of India's economy in its aftermath and argued that financial strength required for industrial development in Britain was derived from
the wealth taken from India. At the same time, right-wing historians have countered that India's low economic performance was due to various sectors being in a state of growth and decline due to changes brought in by colonialism
and a world that was moving towards industrialisation and [[economic integration]].<ref name="roy-1">{{Harvnb|Roy|2006|pp= 22–24}}</ref>

=== Pre-liberalisation period (1947–1992) ===
Indian [[economic policy]] after independence was influenced by the colonial experience, which was seen by Indian leaders as exploitative, and by those leaders' exposure to British social democracy as well as the planned [[economy of the Soviet Union]].<ref name="AtIndependence"/> Domestic policy tended towards protectionism, with a strong emphasis on [[import substitution industrialisation]], [[economic interventionism]], a large government-run [[public sector]], [[Regulation (socio-legal concept)|business regulation]], and [[central planning]],<ref>{{Harvnb|Panagariya|2008|pp=31–32}}</ref> while trade and foreign investment policies were relatively liberal.<ref>{{Harvnb|Panagariya|2008|p=24}}</ref> [[Five-Year Plans of India]] resembled central planning in the [[Soviet Union]]. Steel, mining, machine tools, telecommunications, insurance, and power plants, among other industries, were effectively nationalised in the mid-1950s.<ref name="staley">{{cite web|url=http://www.reason.com/news/show/36682.html|title=The Rise and Fall of Indian Socialism: Why India embraced economic reform|first=Sam|last=Staley|publisher=[[Reason (magazine)|Reason]]|year=2006|accessdate=2011-01-17}}</ref>


[[File:GDP per capita of India (1820 to present).png|thumb|350px|This map shows the change in per capita GDP of India from 1820 AD to 2015 AD. All GDP numbers are inflation adjusted to 1990 International Geary-Khamis dollars. Data Source: Tables of Prof. Angus Maddison (2010). The per capita GDP over various years and population data can be downloaded in a spreadsheet from [http://www.ggdc.net/maddison/oriindex.htm here]. The 2015 estimate is retrieved from the [[International Monetary Fund]].]]

{{Rquote|left|Never talk to me about profit, Jeh, it is a dirty word.|Nehru, India's Fabian Socialism inspired first prime minister to industrialist J.R.D. Tata, when Tata suggested state-owned companies should be profitable|<ref name=gdas2002>{{cite book|title=India Unbound|first=Gurcharan|last=Das|publisher=Anchor Books|year=2002|isbn=978-0-385-72074-8|pages=167–174}}</ref>}}
[[Jawaharlal Nehru]], the first [[prime minister of India]], along with the statistician [[Prasanta Chandra Mahalanobis]], formulated and oversaw economic policy during the initial years of the country's independence. They expected favourable outcomes from their strategy, involving the rapid development of [[heavy industry]] by both public and [[private sector]]s, and based on direct and indirect state intervention, rather than the more extreme [[Economy of the Soviet Union|Soviet-style]] central command system.<ref>{{Harvnb|Datt|Sundharam|2009|pp=185–187}}</ref><ref name="Cameron-1">{{Cite journal|author1=Cameron, John|author2=Ndhlovu, P Tidings|title=Cultural Influences on Economic Thought in India: Resistance to diffusion of neo-classical economics and the principles of Hinduism|journal=Economic Issues|volume=6|issue=2|date=September 2001|url=http://www.economicissues.org/archive/pdfs/5v6p2.PDF|archiveurl=https://web.archive.org/web/20060823161225/http://www.economicissues.org/archive/pdfs/5v6p2.PDF|archivedate=23 August 2006|format=PDF|accessdate=2011-01-17}}</ref> The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidising manual, low-skill [[cottage industries]] was criticised by economist [[Milton Friedman]], who thought it would waste capital and labour, and retard the development of small manufacturers.<ref name="milton-1">{{cite web|title=Milton Friedman on the Nehru/Mahalanobis Plan|url=http://www.indiapolicy.org/debate/Notes/fried_opinion.html|publisher=India Policy Institute|date=22 September 1998|first=Subroto|last=Roy| accessdate = 2005-07-16}}</ref> The rate of growth of the Indian economy in the first three decades after independence was derisively referred to as the [[Hindu rate of growth]] by economists, because of the unfavourable comparison with growth rates in other Asian countries.<ref>{{Harvnb|Panagariya|2008|pp=6–7}}</ref><ref>{{cite news|url=http://www.guardian.co.uk/commentisfree/2006/jun/13/escapingthehindurateofgro|title=Escaping the 'Hindu rate of growth'|newspaper=The Guardian|date=13 June 2006|first=Salil|last=Tripathi|accessdate=2010-11-25|location=London}}</ref>

{{Rquote|right|(In the current Indian regulatory system, ) I cannot decide how much to borrow, what shares to issue, at what price, what wages and bonus to pay, and what dividend to give. I even need the government's permission for the salary I pay to a senior executive.|[[J. R. D. Tata]] in 1969|<ref name=gdas2002/>}}
Since 1965, the use of [[hybrid seed|high-yielding varieties of seeds]], increased [[fertilisers]] and improved [[irrigation]] facilities collectively contributed to the [[Green Revolution in India]], which improved the condition of agriculture by increasing crop productivity, improving crop patterns and strengthening forward and backward linkages between agriculture and industry.<ref>{{Harvnb|Datt|Sundharam|2009|pp=504–506}}</ref> However, it has also been criticised as an unsustainable effort, resulting in the growth of capitalistic farming, ignoring institutional reforms and widening income disparities.<ref>{{Harvnb|Datt|Sundharam|2009|p=507}}</ref>

Subsequently the [[The Emergency (India)|Emergency]] and [[Garibi Hatao]] concept under which income tax levels at one point rose to a maximum of 97.5%, a record in the world for non-communist economies, started diluting the earlier efforts.{{citation needed|reason=Your explanation here|date=October 2015}}

In the late 1970s, the government led by [[Morarji Desai]] eased restrictions on capacity expansion for [[Incumbent#In business|incumbent companies]], removed price controls, reduced corporate taxes and promoted the creation of small-scale industries in large numbers.{{citation needed|reason=Your explanation here|date=October 2015}}

===Post-liberalisation period (since 1991)===
{{Main|Economic liberalisation in India|Economic development in India}}
[[File:India GDP without labels.PNG|thumb|300px|right|GDP of India has risen rapidly since 1991.]]
The collapse of the Soviet Union, which was India's major trading partner, and the [[Gulf War]], which caused a spike in oil prices, resulted in a major balance-of-payments crisis for India, which found itself facing the prospect of defaulting on its loans.<ref name="Ghosh">{{cite web|last=Ghosh |first=Arunabha |title=India's pathway through economic crisis(which makes failer of mixed economy) |publisher=Global Economic Governance Programme |work=GEG Working Paper 2004/06 |date=1 June 2004 |url=http://www.globaleconomicgovernance.org/wp-content/uploads/Ghosh%20-%20India.pdf |accessdate=2009-12-12 |format=PDF |deadurl=yes |archiveurl=https://web.archive.org/web/20111112080531/http://www.globaleconomicgovernance.org/wp-content/uploads/Ghosh%20-%20India.pdf |archivedate=12 November 2011 }}</ref> India asked for a $1.8&nbsp;billion bailout loan from the [[International Monetary Fund]] (IMF), which in return demanded de-regulation.{{sfn|Task Force Report|2006|p=7}}

In response, Prime Minister [[Narasimha Rao]], along with his finance minister [[Manmohan Singh]], initiated the [[Economic reforms in India|economic liberalisation of 1991]]. The reforms did away with the [[Licence Raj]], reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of [[foreign direct investment]] in many sectors.{{sfn|Task Force Report|2006|pp=7–8}} Since then, the overall thrust of liberalisation has remained the same, although no government has tried to take on powerful lobbies such as trade unions and farmers, on contentious issues such as reforming labour laws and reducing [[agricultural subsidy|agricultural subsidies]].<ref name="Gandhi-1">{{cite news|title=That old Gandhi magic|date= 27 November 1997|work=The Economist|url=http://www.economist.com/world/asia/displaystory.cfm?story_id=107076|accessdate=2011-01-17}}</ref> By the turn of the 21st century, India had progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased financial liberalisation.<ref>{{Harvnb|Kumar|2005|p=1037}}</ref> This has been accompanied by increases in life expectancy, literacy rates and food security, although urban residents have benefited more than rural residents.{{sfn|Task Force Report|2006|pp=17–20}}

While the credit rating of India was hit by its [[Pokhran-II|nuclear weapons tests in 1998]], it has since been raised to investment level in 2003 by S&P and Moody's.<ref>{{cite news|url=http://www.thehindubusinessline.in/2003/02/10/stories/2003021000040900.htm|title=Moody's upgrade&nbsp;— Uplifts the mood but raises questions |newspaper=[[Business Line]]|date=10 February 2003|author=S. Venkitaramanan |accessdate=2011-01-17}}</ref> India enjoyed high growth rates for a period from 2003 to 2007 with growth averaging 9% during this period.<ref>http://www.un.org/en/development/desa/policy/wesp/wesp_archive/2010annex.pdf</ref> Growth then moderated due to the global financial crisis starting in 2008. In 2003, [[Goldman Sachs]] predicted that India's GDP in current prices would overtake France and Italy by 2020, Germany, UK and Russia by 2025 and Japan by 2035, making it the third largest economy of the world, behind the US and China. India is often seen by most economists as a rising economic superpower and is believed to play a major role in the global economy in the 21st century.<ref name = GoldmanSach>{{cite web|last=Wilson|first=Dominic|author2=Purushothaman, Roopa |url=http://www2.goldmansachs.com/insight/research/reports/99.pdf|title=DreamingWith BRICs: The Path to 2050|publisher=[[Goldman Sachs]]|work=Global economics paper No. 99|date=1 October 2003|accessdate = 2007-10-04|format=PDF}}</ref><ref name="Indian economy 'to overtake UK'">{{cite news|first=Damian|last=Grammaticas |url=http://news.bbc.co.uk/1/hi/world/south_asia/6294409.stm| title=Indian economy 'to overtake UK'|publisher=BBC News |accessdate=2007-01-26|date=24 January 2007}}</ref>

Starting in 2012, India entered a period of more anaemic growth, with growth slowing down to 5.6%. Other economic problems also became apparent: a plunging [[Indian rupee]], a persistent high [[current account deficit]] and slow industrial growth. Hit by the U.S. [[Federal Reserve]]'s decision to taper [[quantitative easing]], foreign investors had been rapidly pulling out money from India though this has now reversed with the stock market at near all-time high and the current account deficit narrowing substantially.{{citation needed|date=September 2015}}

India started recovery in 2014-15 when the growth rate accelerated to 7.2%. In 2015, Indian went through a startup boom and manufacturing growth skyrocketing due to which the growth in 2015-16 accelerated to 7.6%, which means for the first time since 1990 India grew faster than China which registered 6.9% growth in 2015. The economic growth is expected to be 8.0%+ in 2016-17.In Mid 2015 during the global stock market rout, India also witnessed a sharp fall in stock markets and the rupee weakened. It was repeated again in January 2016.

India is ranked 130th out of 189 countries in the World Bank's 2015 [[ease of doing business index]]. In terms of dealing with construction permits and enforcing contracts, it is ranked among the 10 worst in the world, while it has a relatively favorable ranking when it comes to protecting minority investors or getting credit.<ref name="World Bank and International Financial Corporation" />

==Sectors==
[[File:2010 Percent labor employment in India by its economic sectors.png|thumb|300px|Percent labor employment in India by its economic sectors (2010).<ref>[http://planningcommission.nic.in/data/datatable/0306/table%20116.pdf Employment across various sectors], NSSO 66th Nationwide Survey, Planning Commission, Government of India (June 3, 2014), pp 116</ref>]]
[[File:1951 to 2013 Trend Chart of Sector Share of Total GDP for each year, India.png|thumb|300px|The GDP contribution of various sectors of Indian economy have evolved between 1951 and 2013, as its economy has diversified and developed.]]
Historically, India has classified and tracked its economy and GDP as three sectors&nbsp;— agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India's definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, health care, banking and insurance, and many other economic activities.<ref>[http://indiainbusiness.nic.in/newdesign/index.php?param=advantage/163 Indian Economy] Government of India (2013)</ref><ref>[http://planningcommission.nic.in/data/datatable/0306/table%20116.pdf Employment across various sectors], NSSO 66th Nationwide Survey, Planning Commission, Government of India (3 June 2014)</ref>

===Agriculture===
[[File:Tierecke 8983 - Rice fields near Puri.jpg|thumb|left| Rice fields near Puri, [[Odisha]] on East Coast]]
{{Main|Agriculture in India|Forestry in India|Animal husbandry in India|Fishing in India|Natural resources in India}}
India [[List of countries by GDP sector composition|ranks second]] worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP and employed 49% of the total workforce in 2014.<ref>{{cite web|title=Indian Economy At a Glance |url=https://principles-of-economics-and-business.blogspot.com/2015/09/indian-economy-at-glance.html|accessdate=2015-10-09}}</ref> As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the largest employment source and a significant piece of the overall socio-economic development of India.{{sfn|Economic Survey|2010|p=180}} Crop yield per unit area of all crops has grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the Green Revolution in India. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world.<ref name="Datt-5">{{Harvnb|Datt|Sundharam|2009|pp=499–501}}</ref> The states of [[Uttar Pradesh]], [[Punjab, India|Punjab]], [[Haryana]], [[Madhya Pradesh]], [[Andhra Pradesh]], [[Telangana]], [[Bihar]], [[West Bengal]], [[Gujarat]] and [[Maharashtra]] are key contributors to Indian agriculture.

India receives an average annual rainfall of {{convert|1208|mm|in}} and a total annual [[precipitation (meteorology)|precipitation]] of 4000&nbsp;billion cubic metres, with the total utilisable water resources, including surface and [[groundwater]], amounting to 1123&nbsp;billion cubic metres.<ref>{{cite web|url=http://cwc.gov.in/main/webpages/statistics.html#2|title=India&nbsp;– Land and Water Resources at a glance |publisher=Central Water Commission, Government of India|accessdate=2010-11-18}}</ref> {{convert|546820|km2|mi2}} of the land area, or about 39% of the total cultivated area, is irrigated.<ref name="irrigation">{{cite web|url=http://mowr.gov.in/writereaddata/linkimages/statewiseirrigated2079753822.pdf |title=State-Wise Details of Net Irrigated Area (NIA), Net Sown Area (NSA) And Percentage of NIA To NSA |publisher=Ministry of Water Resources, Government of India |accessdate=2010-11-18 |deadurl=yes |archiveurl=https://web.archive.org/web/20110721161906/http://mowr.gov.in/writereaddata/linkimages/statewiseirrigated2079753822.pdf |archivedate=21 July 2011 }}</ref> India's inland water resources including rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly six million people in the fisheries sector. In 2010, India had the world's sixth largest fishing industry.<ref>{{cite web|url=http://www.fisheries.is/economy/fisheries-impacts/global-comparison/ |title=Fishery - Global Comparison|accessdate=2015-10-09}}</ref>
[[File:Amul Plant at Anand.jpg|thumb|left|Amul Dairy Plant at Anand was a highly successful co-operative started during the green revolution in the 1960s]]
[[File:Cashew @ Paravur.jpg|right|thumb|India exports more than 100,000 tonnes of processed cashew kernels every year. There are more than 600 cashew processing units in [[Kollam]] alone.<ref>{{cite news|url=http://www.qmak.in/mypics%5C91120154629572.pdf|title=Cashew industry : Challenges and Opportunities|accessdate=2016-03-22}}</ref>]]
India is the largest producer in the world of milk, jute and [[pulses]], and also has the world's second largest cattle population with 170&nbsp;million animals in 2011.<ref>{{cite news|url=http://www.economist.com/blogs/dailychart/2011/07/global-livestock-counts|title=Economist - Global livestock counts|accessdate=2015-10-09}}</ref> It is the second largest producer of rice, wheat, sugarcane, cotton and [[peanut|groundnuts]], as well as the second largest fruit and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production respectively. India is also the second largest producer and the largest consumer of silk in the world, producing 77,000&nbsp;tons in 2005.<ref name=fao-silk>{{cite web|url=http://www.fao.org/es/ess/top/commodity.html?lang=en&item=1185&year=2005 |title=Major Food And Agricultural Commodities And Producers&nbsp;– Countries By Commodity |publisher=[[FAO]] |accessdate=2009-12-12}}</ref> India is the largest exporter of cashew kernels and cashew nut shell liquid (CNSL). Foreign exchange earned by the country through the export of cashew kernels during 2011-12 reached Rs.4,390 crore based on statistics from the [[Cashew Export Promotion Council of India]] (CEPCI). 131,000 tonnes of kernels were exported during 2011-12.<ref>{{cite news|url=http://www.thehindu.com/news/national/kerala/rise-in-earnings-from-cashew-kernel-exports/article3893095.ece|title=Rise in earnings from cashew kernel exports - The Hindu|accessdate=2016-03-22}}</ref> There are about 600 cashew processing units in [[Kollam]], [[Kerala]].<ref>{{cite news|url=http://www.qmak.in/mypics%5C91120154629572.pdf|title=Cashew industry : Challenges and Opportunities|accessdate=2016-03-22}}</ref>

India exports several agriculture products, such as Basmati rice, wheat, cereals, spices, fresh fruits, dry fruits, buffalo beef meat, cotton, tea, coffee and other cash crops particularly to the Middle East, Southeast and East Asian countries. It earns about 10 percent of its export earnings from this trade.<ref name=moci/>

===Industry===
{{See also|Construction industry of India}}
[[File:Jamnagar refinery.jpg|thumb|[[Jamnagar Refinery]] in Gujarat. Although [[crude oil]] constitutes about a third of the country's total imports, India is a net exporter of [[petroleum product]]s.]]
Industry accounts for 26% of GDP and employs 22% of the total workforce.<ref name="quandl.com">{{cite web|url=http://www.quandl.com/economics/india-all-economic-indicators#Productive+Sectors |title=India&nbsp;– All Economic Indicators on Quandl |accessdate=2013-10-08}}</ref> According to the World Bank, India's industrial manufacturing GDP output in 2015 was 6th largest in the world on current US dollar basis ($559 billion),<ref>[http://unstats.un.org/unsd/snaama/dnlList.asp GDP and its breakdown at current prices in US Dollars] United Nations Statistics Division (2013)</ref> and 9th largest on inflation adjusted constant 2005 US dollar basis ($197.1 billion).<ref>[http://unstats.un.org/unsd/snaama/dnlList.asp GDP and its breakdown at constant 2005 prices in US Dollars] United Nations Statistics Division (2013)</ref> The Indian industrial sector underwent significant changes as a result of the economic liberalisation in India economic reforms of 1991, which removed import restrictions, brought in foreign competition, led to the privatisation of certain government owned public sector industries, liberalised the [[Foreign direct investment|FDI]] regime, improved infrastructure and led to an expansion in the production of [[fast-moving consumer goods]].{{sfn|Task Force Report|2006|pp=9–10}} Post-liberalisation, the Indian private sector was faced with increasing domestic as well as foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced employment generation even by smaller manufacturers who earlier relied on relatively labour-intensive processes.<ref>{{Harvnb|Kumar|2005|pp=1040–1041}}</ref>

====Petroleum products and chemicals====
{{See also|History of the oil industry in India}}
Petroleum products and chemicals are a major contributor to India's industrial GDP, and together they contribute over 34% of its export earnings. India hosts many oil refinery and petrochemical operations, including the world's largest refinery complex in [[Jamnagar]] that processes 1.24 million barrels of crude per day.<ref>[http://www.hydrocarbons-technology.com/features/feature-top-ten-largest-oil-refineries-world/ Top ten large oil refineries] Hydrocarbon Technologies (September 2013)</ref> By volume, the Indian chemical industry was the third largest producer in Asia, and it alone contributed 5% of its GDP. India is one of the top 5 world producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals.<ref>[http://www.ibef.org/download/Chemicals-March-220313.pdf Indian Chemical Industry] IBEF, Ministry of Commerce and Industry, Government of India (March 2014)</ref> Despite being a large producer and exporter of chemicals, India is a net importer of chemicals given its domestic demand for products.<ref>[http://www.ibef.org/download/chemicals-august-2013.pdf Indian Chemical Industry] IBEF, Ministry of Commerce and Industry, Government of India (August 2013)</ref>

====Pharmaceuticals====
{{main|Pharmaceutical industry in India}}
The Indian pharmaceutical industry has grown in recent years to become a major manufacturer of health care products to the world. India produced about 8 per cent of the global pharmaceutical supply in 2011 by value, including over 60,000 generic brands of medicines sold around the world.<ref>[http://www.ibef.org/download/Pharmaceuticals-March-220313.pdf Indian Pharmaceutical Industry] IBEF, Ministry of Commerce and Industry, Government of India (2013)</ref> It is one of the fastest-growing sub-sectors of its industry and a significant contributor of India's export earnings. The state of Gujarat has become a hub for the manufacture and export of pharmaceuticals and [[Active Pharmaceutical Ingredient|APIs]].<ref>[http://www.in.kpmg.com/pdf/gujarat-pharma08.pdf Gujarat Pharma Industry] KPMG (2010)</ref> The industry is expected to double from its 2012 levels to US$55 billion by 2020, according to a McKinsey report.<ref>[http://www.ibef.org/industry/pharmaceutical-india.aspx Indian Pharmaceutical Industry] IBEF, Ministry of Commerce and Industry, Government of India (2013)</ref>

====Engineering====
{{See also|Automotive industry in India}}
[[File:Mahindra XUV 500 W6 2014 cc (12510496555).jpg|left|thumb|Mahindra XUV 500 is one of the several indigenously designed and manufactured vehicles]]
The engineering industry of India is the largest sub-sector of its industry GDP and is one of three largest foreign exchange earning sectors for the country.<ref>[http://www.ibef.org/industry/engineering-india.aspx Engineering industry of India] IBEF, Ministry of Commerce and Industry, Government of India (April 2014)</ref> It includes transport equipment, machine tools, capital goods, transformers, switchgears, furnaces, cast and forged simple to precision parts for turbines, automobiles and railways. The industry employs about four million workers. On a value-added basis, India's engineering industry sector exported $67 billion worth of engineering goods in the 2013-14 fiscal year, and served part of the domestic demand for engineering goods.<ref>[http://www.financialexpress.com/news/making-a-case-for-higher-engineering-exports/1273068 Making a case for higher engineering exports] The Financial Express (24 July 2014)</ref>

The engineering industry of India includes its growing car, motorcycle and scooters industry, as well as productivity machinery such as tractors. India manufactured and assembled about 18 million passenger and utility vehicles in 2011, of which 2.3 million were exported.<ref name=itengg/> India is the world's largest producer of and the largest market for [[tractor]]s, accounting for 29% of world's tractor production in 2013.<ref name=itengg>[http://www.ct.camcom.gov.it/documenti/internazionalizzazione/consorzio/ENGINEERING_INDUSTRY_IN_INDIA.pdf Engineering industry of India] MECCANICA AND BENI STRUMENTALI, Government of Italy (2013)</ref><ref>[http://www.aem.org/News/Advisors/AEM/?HL=Global_Tractor_Market_Analysis_Available_to_AEM_Members_from_Agrievolution_Alliance&A=1292 Global Tractor Market Analysis Available to AEM Members from Agrievolution Alliance] Association of Equipment Manufacturers, Milwaukee, Wisconsin, USA (2014)</ref> India is the 12th largest producer and 7th largest consumer of machine tools in the world.<ref name=itengg/>

====Gems and jewellery====
[[File:HopeDiamondwithLighting2 (cropped).JPG|thumb|The gems and jewellery industry is an ancient and continuing major component of the Indian economy. Many famous stones such as the [[Koh-i-noor]] and [[Hope Diamond]] (above), now at the Smithsonian, came from India.<ref>India Before Europe, C.E.B. Asher and C. Talbot, Cambridge University Press, 2006, ISBN 0-521-80904-5, p. 40</ref><ref>A History of India, Hermann Kulke and Dietmar Rothermund, Edition: 3, Routledge, 1998, p. 160; ISBN 0-415-15482-0</ref>]]
India is one of the world's largest diamonds and gem polishing and jewellery manufacturing center; it is also one of the two largest [[The Gold (Control) Act, 1968|consumers of gold]].<ref name=dnbgems>[https://www.dnb.co.in/IndianGemsandJewellerySector/Overview.asp India's gem and Jewellery Sector] Dun and Bradstreet (2012)</ref><ref>[http://www.gold.org/news-and-events/press-releases/consumer-demand-gold-53-q2-2013-led-strong-growth-china-and-india Consumer demand for gold up 53% in Q2 2013 led by strong growth in China and India] World Gold Council (August 2013)</ref> After crude oil and petroleum products, the export and import of gold, precious metals, precious stones, gems and jewellery accounts for the largest portion of India's global trade. The industry contributes about 7% of India's GDP, employs millions, and is a major source of its foreign exchange earnings.<ref>[http://www.ibef.org/industry/gems-jewellery-india.aspx Gems and Jewellery Industry in India] IBEF, Ministry of Commerce and Industry, Government of India (2013)</ref> The gems and jewellery industry, in 2013, created {{INRConvert|251000|c}} in economic output on value added basis. It is growing sector of Indian economy, and [[A.T. Kearney]] projects it to grow to {{INRConvert|500000|c}} by 2018.<ref name=atkgem>[http://www.ficci.com/spdocument/20332/India-Jewellery-Review-2013.pdf All that glitters is Gold: India Jewellery Review 2013] A.T. Kearny (2014)</ref>

The gems and jewellery industry has been an ancient art and continuous economic activity in India, traced over several thousand years.<ref>Oppi Untracht (1997), Traditional jewellery of India, ISBN 978-0810938861, pp 1-23</ref> Till 18th century, India was the world's only known major reliable source of diamond mining and its processing.<ref name=dnbgems/> Now, South Africa and Australia are the major sources of diamonds and precious metals, but along with [[Antwerp]], [[New York City|New York]], and [[Ramat Gan]], Indian cities such as [[Surat]] and [[Mumbai]] are the hubs of world's jewellery polishing, cutting, precision finishing, supply and trade. Unlike other centers, the gems and jewellery economic activity in India is primarily artisans driven, is manual, the sector is highly fragmented, and 96% of the industry is served by family owned operations.

Indian gem and jewellery economy's particular strength is in precision cutting, polishing and processing small diamonds (below one carat).<ref name=dnbgems/> Yet, India is also a hub for processing of larger diamonds, pearls and other precious stones. About 11 out of 12 diamonds set in any jewellery in the world are cut and polished in India.<ref>[http://www.rough-polished.com/en/analytics/77889.html Indian diamond cutting and polishing sector] Rough and Polished (6 March 2013)</ref> It is also a major hub of gold and other precious metal-based precision jewellery industry. Its domestic demand for gold and jewellery products is another driver of India's GDP.<ref name=atkgem/>

====Textile====
{{main|Textile industry in India}}
Textile industry contributes about 4 per cent to the country’s GDP, 14 per cent of the industrial production, and 17 per cent to export earnings.<ref name="ibeftex">{{cite web|url=http://www.ibef.org/industry/textiles.aspx|title=Textile Industry in India, Indian Textile Industry, Garment Industry|publisher=IBEF, Govt of India|accessdate=2014-04-12}}</ref> India's textile industry has transformed from a declining sector to a rapidly developing one in recent years. After freeing the industry in 2004–2005 from a number of limitations, primarily financial, the government gave a green light to massive investment inflows&nbsp;– both domestic and foreign. During the period from 2004 to 2008, total investment into textile sector increased by 27&nbsp;billion dollars. [[Ludhiana]] produces 90% of woollens in India and is known as the Manchester of India. [[Tirupur]] has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear. Expanding textile centers such as [[Ichalkaranji]] enjoy one of the highest per capita incomes in the country.<ref>{{cite news|url=http://www.hindu.com/2007/06/11/stories/2007061110090500.htm|title=Helping Tirupur emerge as a leader in knitwear exports in India|newspaper=The Hindu|location=Chennai|date=11 June 2007|accessdate=2011-01-17}}</ref> India's cotton farms, fiber and textile industry provides employment to 45&nbsp;million people in India,<ref name="ibeftex"/> including some [[child labour]] (1%). The sector is estimated to employ around 400,000 [[child labour|children]] under the age of 18.<ref>{{cite web |url=http://www.bbc.co.uk/news/business-26294513 |title=The task of protecting India's child cotton pickers |last1=Neal |first1=John |date=23 February 2014 |website=www.bbc.co.uk |publisher=The BBC |accessdate=23 February 2014}}</ref>

====Mining====
{{Main|Mining in India}}
India's mining industry was the 4th largest producer of minerals in the world by volume, and 8th largest producer by value in 2009.<ref name=mospimines>[http://mospi.nic.in/Mospi_New/upload/SYB2014/CH-15-MINING/Mining.pdf Mining] Chapter 15, Ministry of Statistics and Programme Implementation, Govt of India (2011)</ref> In 2013, it mined and processed 89 minerals, of which 4 were fuel, 3 were atomic energy minerals, and 80 non-fuel.<ref>[http://www.ey.com/IN/en/Industries/Mining---Metals/EY-emerging-economies-and-Indias-mining-industry Emerging economies and India’s mining industry] Ernst & Young (2014)</ref> The government owned public sector accounted for 68% of mineral produced by volume, in 2011-12.<ref name=ficcimine/>

Nearly 50% of India's mining industry, by output value, is concentrated in eight states - [[Odisha]], [[Rajasthan]], [[Chhattisgarh]], [[Andhra Pradesh]], [[Telangana]], [[Jharkhand]], [[Madhya Pradesh]] and [[Karnataka]]. Another 25% of the output by value comes from its offshore oil and gas resources.<ref name=ficcimine>[http://www.ficci.com/spdocument/20317/Mining-Industry.pdf Development of Indian Mining Industry] FICCI (2012), pp 12-14</ref> India operated about 3,000 mines in 2010, half of which were coal, limestone and iron ore.<ref>[http://mospi.nic.in/Mospi_New/upload/SYB2014/CH-15-MINING/Mining.pdf Mining] Chapter 15, Ministry of Statistics and Programme Implementation, Govt of India (2011), pp 205</ref> On output value basis, India's was one of five largest producers of mica, chromite, coal, lignite, iron ore, bauxite, barites, zinc, manganese; while being one of the 10 largest global producers of many other minerals.<ref name=mospimines/><ref name=ficcimine/> India was fourth largest producer of steel in the world in 2013,<ref>[https://www.worldsteel.org/dms/internetDocumentList/bookshop/Word-Steel-in-Figures-2013/document/World%20Steel%20in%20Figures%202013.pdf World Steel Figures in 2013] World Steel Association (2014), pp 9</ref> and seventh largest producer of aluminum.<ref>[http://minerals.usgs.gov/minerals/pubs/commodity/aluminum/mcs-2014-alumi.pdf Aluminum] USGS, U.S. Government (2014)</ref>

India's mineral resources are vast.<ref>[http://business.gov.in/Industry_services/mines.php Mines] Business Knowledge Resources, Government of India (2013)</ref> However, its mining industry has declined&nbsp;— contributing 2.3% of its GDP in 2010 compared to 3% in 2000, and employed 2.9 million people&nbsp;— a decreasing percentage of its total labor. India is a net importer of many minerals including coal. India's mining sector decline is because of complex permit, regulatory and administrative procedures that take 6 to 20 fold more time than other mining countries such as Australia and South Africa, inadequate infrastructure, shortage of capital resources, and slow adoption of ecologically and environmentally sustainable technologies.<ref name=ficcimine/><ref>[http://mines.nic.in/writereaddata%5CContentlinks%5C9eeb6e3b6113423586029ee88e1f4b36.pdf Unlocking the Potential of the Indian Minerals Sector] Ministry of Mines, Govt of India (November 2011)</ref>

===Services===
{{further|Information technology in India|Business process outsourcing in India}}
[[File:IlabsCentre.jpg|thumb|Bangalore, along with cities such as Pune, Hyderabad, Chennai and Gurgaon, is a major IT services center.]]
India's services sector has the largest share in the GDP, accounting for 57% in 2012, up from 15% in 1950.<ref name="quandl.com"/> It is the [[List of countries by GDP sector composition#Nominal GDP sector composition|7th largest in the world]] by nominal GDP, and [[List of countries by GDP sector composition#PPP GDP sector composition|third largest]] when purchasing power is taken into account. The services sector provides employment to 27% of the work force. Information technology and [[business process outsourcing]] are among the fastest-growing sectors, having a cumulative growth rate of revenue 33.6% between 1997 and 1998 and 2002–03 and contributing to 25% of the country's total exports in 2007–08.<ref>{{Harvnb|Datt|Sundharam|2009|pp=668–669}}</ref> The growth in the IT sector is attributed to increased specialisation, and an availability of a large pool of low cost, highly skilled, educated and fluent English-speaking workers, on the [[supply and demand|supply side]], matched on the demand side by increased demand from foreign consumers interested in India's service exports, or those looking to [[outsourcing|outsource]] their operations. The share of the [[Indian IT industry]] in the country's GDP increased from 4.8% in 2005–06 to 7% in 2008.<ref name="Indian IT">{{cite news|title=The Coming Death of Indian Outsourcing|work=Forbes| url=http://www.forbes.com/home/enterprisetech/2008/02/29/mitra-india-outsourcing-tech-enter-cx_sm_0229outsource.html|date=29 February 2008|first=Sramana|last=Mitra|accessdate=2010-01-10}}</ref> In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world.<ref>{{cite news|first=Niraj|last=Sheth|url=http://online.wsj.com/article/SB124344190542659025.html#project%3DOUTSOURCING09%26articleTabs%3Dinteractive |title=Outlook for Outsourcing |newspaper=[[The Wall Street Journal]] |date=28 May 2009 |accessdate=2010-04-05}}</ref>

====Energy and Power====
{{Main|Electricity sector in India|Energy policy of India}}
[[File:NTPC Ramagundam.jpg|thumb|[[NTPC Ramagundam|NTPC's Ramagudam Super Thermal Power Station]]]]
The [[primary energy]] consumption in India is the fourth biggest after China, USA and Russia.<ref>{{cite web|url=http://www.usdebtclock.org/energy.html |title=World energy consumption clock |publisher=US debt clock org |accessdate=2014-08-06}}</ref><ref name="srwew">{{cite web | url=http://www.bp.com/content/dam/bp/pdf/energy-economics/statistical-review-2015/bp-statistical-review-of-world-energy-2015-full-report.pdf | title=Statistical Review of world energy 2015| accessdate=17 June 2015}}</ref> Coal and crude oil together account for 85% of the primary energy consumption of India. India's [[oil reserves]] meet 25% of the country's domestic oil demand.<ref name="CIA">{{cite web| title=CIA&nbsp;– The World Factbook&nbsp;– India| publisher=CIA| date=20 September 2007| url =https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#Econ| accessdate =2007-10-02}}</ref><ref name="Datt-1">{{Harvnb|Datt|Sundharam|2009|p=104}}</ref> As of April 2015, India's total proven crude oil reserves is 763.476 million metric tons, while gas reserves stood at {{convert|1490|e9m3|e12cuft|abbr=off}}.<ref name=png>{{cite web| title=Indian Petroleum & Natural Gas Statistics, 2014-15| url=http://petroleum.nic.in/docs/pngstat.pdf| accessdate=19 January 2016}}</ref> Oil and natural gas fields are located offshore at [[Bombay High]], [[Krishna Godavari Basin]] and the [[Cauvery Delta]], and onshore mainly in the states of [[Assam]], Gujarat and [[Rajasthan]]. India is the fourth largest consumer of oil in the world and net oil imports are nearly {{INRConvert|820000|c}} worth of oil in 2014-15,<ref name=png/> which had an adverse effect on its [[current account deficit]]. The petroleum industry in India mostly consists of public sector companies such as [[Oil and Natural Gas Corporation]] (ONGC), [[Hindustan Petroleum Corporation Limited]] (HPCL), [[Bharat Petroleum Corporation Limited]] (BPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in the oil sector such as [[Reliance Industries Limited]] (RIL) which operates the world's largest oil refining complex.<ref>{{cite web|url=http://www.businessweek.com/news/2010-01-27/reliance-net-beats-estimate-after-boosting-natural-gas-sales.html |title=Reliance Net Beats Estimate After Boosting Natural Gas Sales |work=BusinessWeek |date=27 January 2010 |accessdate=2010-04-05 |deadurl=yes |archiveurl=https://web.archive.org/web/20110915194809/http://www.businessweek.com/news/2010-01-27/reliance-net-beats-estimate-after-boosting-natural-gas-sales.html |archivedate=15 September 2011 }}</ref>

India became the world's third largest producer of electricity in the year 2013 with 4.8% global share in electricity generation surpassing Japan and Russia.<ref name="srwe">{{cite web | url=http://www.bp.com/content/dam/bp/pdf/energy-economics/statistical-review-2015/bp-statistical-review-of-world-energy-2015-electricity-section.pdf |title= BP Statistical Review of world electric energy, 2015 | accessdate=17 June 2015}}</ref> As of November 2015, India had an installed power generation capacity of 281.423 [[Gigawatt|GW]], of which [[thermal power]] contributed 69.8%, [[hydroelectricity]] 15.2%, other sources of [[renewable energy]] 13.0%, and [[nuclear power]] 2.1%.<ref name="capacity">{{cite web | url=http://www.cea.nic.in/reports/monthly/installedcapacity/2015/installed_capacity-11.pdf | title=All India Installed Capacity (In MW) Of Power Stations |accessdate=13 December 2015}}</ref><ref name="cea13">{{cite web | url=http://powermin.nic.in/power-sector-glance-all-india| title=All India Power Sector at a Glance| publisher=Ministry of Power, Government of India | accessdate=13 December 2015}}</ref> India meets most of its domestic electricity demand through its 106&nbsp;billion tonnes of coal reserves.<ref>{{cite web|url=http://www.coal.nic.in/reserve2.htm |title=Inventory of Coal Resources of India |publisher=Ministry of Coal, Government of India |accessdate=2010-11-18 |deadurl=yes |archiveurl=https://web.archive.org/20100419020324/http://www.coal.nic.in:80/reserve2.htm |archivedate=19 April 2010 }}</ref> India is also rich in certain alternative [[Energy policy of India|sources of energy]] with significant future potential such as [[Solar power in India|solar]], [[Wind power in India|wind]] and [[Biofuel in India|biofuels]] ([[jatropha]], sugarcane). India's dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years.<ref>{{cite news|url=http://www.livemint.com/2008/06/30222448/Uranium-shortage-holding-back.html |title=Uranium shortage holding back India's nuclear power drive |newspaper=Mint |date=30 June 2008 |accessdate=2010-04-05}}</ref> Recent discoveries of natural uranium in [[Tummalapalle uranium mine|Tummalapalle]] belt, which promises to be one of the top 20 of the world's reserves,<ref>{{cite news| url=http://www.thehindu.com/news/states/andhra-pradesh/article1554078.ece| location=Chennai, India| work=The Hindu| first=T. S.| last=Subramanian| title=Massive uranium deposits found in Andhra Pradesh| date=20 March 2011}}</ref><ref>{{cite news| url=http://www.ibtimes.com/massive-uranium-deposit-found-andhra-pradesh-india-299977| location=USA| work=International Business Times| first=Monami| last=Thakur| title=Massive uranium deposits found in Andhra Pradesh| date=19 July 2011}}</ref><ref>{{cite news| url=http://www.telegraph.co.uk/news/worldnews/asia/india/8647745/Largest-uranium-reserves-found-in-India.html| location=New Delhi, India| work=The Telegraph| first=Rahul| last=Bedi| title=Largest uranium reserves found in India| date=19 July 2011}}</ref> and an estimated reserve of {{convert|846477|MT|ST}} of [[thorium]]<ref name=pib>{{cite news|title=Availability of Thorium |url=http://pib.nic.in/newsite/erelease.aspx?relid=74293|work=|publisher=Press Information Bureau, Government of India|accessdate=27 March 2012|date=10 August 2011}}</ref>&nbsp;– about 25% of world's reserves&nbsp;– are expected to fuel the country's ambitious [[nuclear power in India|nuclear energy program]] in the long-run. The [[Indo-US nuclear deal]] has also paved the way for India to import uranium from other countries.<ref>{{cite news|url=http://www.livemint.com/2008/10/09005930/Bush-signs-IndiaUS-nuclear-de.html?d=1 |title=Bush signs India-US nuclear deal into law |newspaper=Mint |date=9 October 2008 |accessdate=2010-04-05}}</ref>

====Infrastructure====
[[File:VizagPort.jpg|thumb|left|Vizag Sea Port, Visakhapatnam Port in Bay of Bengal]]
{{Main|Indian road network|Indian Railways|Ports in India|Transport in India}}
India's infrastructure and transport sector contributes about 5% of its GDP. India has the world's second largest [[Indian Road Network|road network]] in quantitative terms,<ref name="Road">{{cite web|title=Infrastructure Rankings|url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html|publisher=CIA|accessdate=2011-01-17}}</ref> covering more than 4.3&nbsp;million kilometers. Qualitatively, India's roads are a mix of modern highways and narrow, unpaved roads. India also has the lowest kilometer lane road density per 100,000 people among G-27 countries&nbsp;— leading to traffic congestion. It is upgrading its infrastructure. As of May 2014, India had completed and placed in use over 22,600 kilometres of recently built 4 or 6-lane highways connecting most of its major manufacturing, commercial and cultural centers.<ref name=nhdp2011>{{cite web|title=National Highway Development Project (NHDP)|publisher=NHAI, Ministry of Roads Transport, Govt of India|date=July 2014|url=http://www.nhai.org/WHATITIS.asp}}</ref> India's road infrastructure carries 60% of freight and 87% of passenger traffic.<ref name="Road annual report">{{cite web|url=http://morth.nic.in/showfile.asp?lid=414|title=Annual report 2010–2011, |publisher=Ministry of Road transport and highways|accessdate=2012-02-07}}</ref>

[[Indian Railways]] is the fourth largest rail network in the world, with a track length of 114,500&nbsp;kilometers and 7,172 stations. This government owned and operated railway network carried an average of 23 million passengers a day, and over a billion tonnes of freight a year.<ref>[http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/MTHSTAT/2014/MER_March_2014.pdf Indian Railways] Govt of India (2014)</ref> India has a coastline of 7,500 kilometers with 13 major ports and 60 operational non-major ports, which together handle 95% of the country’s external trade by volume and 70% by value (rest handled by air).<ref>[http://www.ey.com/Publication/vwLUAssets/FICCI_Infra_report_final/$FILE/FICCI_Infra_report_final.pdf India Infrastructure Summit 2012] Ernst & Young (2013), pp 4 {{wayback|url=http://www.ey.com/Publication/vwLUAssets/FICCI_Infra_report_final/$FILE/FICCI_Infra_report_final.pdf |date=20140727183953 |df=y }}</ref> [[Jawaharlal Nehru Port|Nhava Sheva]], Mumbai is the largest public port, while [[Adani Ports & SEZ Limited|Mundra]] is the largest private sea port.<ref>[http://business.gov.in/infrastructure/ports.php Ports] Business Resources, Govt of India (2013)</ref> The airport infrastructure of India includes 125 airports,<ref>[http://www.aai.aero/allAirports/airports.jsp Airports] AAI, Govt of India (2013)</ref> of which 66 airports are licensed to handle both passengers and logistics.<ref>[http://dgca.nic.in/aerodrome/aero_list.pdf LIST OF LICENSED AERODROME] Directorate General of Commercial Aviation, Govt of India (May 2014)</ref>

About 74 people out of 100 have land or wireless telephones in India, or about 927&nbsp;million telephone subscribers, two-thirds of them in urban areas.<ref>{{cite news|url=http://www.tribuneindia.com/2011/20110305/main7.htm|title=It's ringing mobiles throughout the country|newspaper=The Tribune|date=5 March 2011|accessdate=2011-03-19}}</ref> Internet use has been growing rapidly in India, with an estimated 243 million users in June 2014.<ref>{{cite web|url=http://timesofindia.indiatimes.com/tech/tech-news/With-243-million-users-by-2014-India-to-beat-US-in-internet-reach-Study/articleshow/25719512.cms
|title=With 243 million users by 2014, India to beat US in internet reach: Study |publisher=The Times of India|accessdate=2014-07-27}}</ref> This is projected to grow to 330–370 million users by 2016.<ref>Gnanasambandam et al., [http://www.mckinsey.com/~/media/mckinsey%20offices/india/pdfs/online_and_upcoming_the_internets_impact_on_india.ashx Online and upcoming: The Internet’s impact on India] McKinsey & Company (December 2012)</ref>

====Retail====
{{main|Retailing in India}}
[[File:Grocery Shop in a small Town in South India (1).JPG|thumb|The neighborhood Grocery Shops handle much of retail trade both in rural and urban India]]
Retail industry contributes between 14–15%<ref name=mckinsey2>{{cite web|title=The Bird of Gold&nbsp;– The Rise of India's Consumer Market|publisher=McKinsey and Company|date=May 2007|url=http://www.mckinsey.com/Insights/MGI/Research/Asia/The_bird_of_gold}}</ref><ref>{{cite news|title=The Uneasy Compromise&nbsp;– Indian Retail|first=Anand|last=Dikshit|publisher=The Wall Street Journal|date=12 August 2011|url=http://online.wsj.com/article/SB10001424053111903461104576461540616622966.html}}</ref> to 20% of India's GDP.<ref name=pwc12tik>[http://www.pwc.in/en_IN/in/assets/pdfs/industries/retail-and-consumer/retail-report-300812.pdf The Indian Kaleidoscope - Emerging trends in retail] PWC (2012)</ref> The Indian retail market is estimated to be US$450 [[1000000000 (number)|billion]] and one of the top five retail markets in the world by economic value. India is one of the fastest-growing retail market in the world,<ref>{{cite web|title=Winning the Indian consumer|publisher=McKinsey & Company|year=2005|url=http://www.mckinseyquarterly.com/Marketing/Sectors_Regions/Winning_the_Indian_consumer_1659?gp=1}}</ref><ref>{{cite news| url=http://www.bbc.co.uk/news/world-asia-india-15885055| first=Sanjoy|last=Majumder|title= Changing the way Indians shop|work=BBC News|date = 25 November 2011}}</ref> and is projected to reach $1.3 trillion by 2020.<ref name=pwc12tik/><ref>[http://www.strategyand.pwc.com/media/file/RAI_Strategyand_Successful-Innovations-in-Indian-Retail.pdf Successful Innovations in Indian Retail] Booz Allen & PwC (February 2013)</ref>

India's retailing industry mostly consists of the local [[Small business|mom and pop store]], owner manned shops and street vendors. Organised retail supermarkets are growing but small, with a market share of 4% as of 2008.<ref name="chainstores">{{cite news|url=http://www.economist.com/displayStory.cfm?story_id=11465586|title=Retailing in India: Unshackling the chain stores|work=The Economist|date=29 May 2008|accessdate=2010-01-10}}</ref> In 2012 government permitted 51% FDI in multi brand retail and 100% FDI in single brand retail. However, a lack of back end warehouse retail infrastructure, as well as state level permits and red tape continues to limit organised retail's growth in Indian economy.<ref>Sharma and Mukherji, [http://online.wsj.com/news/articles/SB10001424127887323622904578129294224588914 Bad Roads, Red Tape, Burly Thugs Slow Wal-Mart's Passage in India] The Wall Street Journal (12 January 2013)</ref> Over thirty regulations such as "signboard licences" and "anti-hoarding measures" have to be complied before a store can open doors. There are taxes for moving goods from state to state, and even within states.<ref name="chainstores"/> The lack of infrastructure and efficient retail network, according to The Wall Street Journal, causes a third of India's agriculture produce to be lost from spoilage.<ref name="India's Food Transportation Ordeal">[http://online.wsj.com/news/articles/SB10001424127887324907204578187122310400706 India's Food Transportation Ordeal] The Wall Street Journal (11 January 2013)</ref>

====Tourism====
{{main|Tourism in India|Medical tourism in India}}
[[File:Kerala Backwaters Sunset.JPG|thumb|The state of Kerala in recent decades became a major international tourist destination after the state government promoted its natural coastline with backwaters]]
International and domestic tourism industry contributes more to India's GDP than its textile sector. India attracted 7.70 million international tourist arrivals and $19.75 billion in foreign exchange earnings from tourism receipts in 2014.<ref>{{cite web|url=http://tourism.gov.in/Pages/AnualReportArc.aspx |title=Annual Report (English) for the Year 2014-15 |date= |accessdate= |website= |publisher= |deadurl=yes |archiveurl=https://web.archive.org/web/20150814110316/http://tourism.gov.in:80/Pages/AnualReportArc.aspx |archivedate=14 August 2015 }}</ref> Tourism to India has seen a steady growth, year on year, from 4.45 million arrivals in 2006 to 7.7 million arrivals in 2014. The United States is the largest source of international tourists to India, while European Union nations and Japan are other major sources of international tourists.<ref name=unwtoitp>[http://asiapacific.unwto.org/sites/all/files/pdf/cap-csa-24-5b_ref_indias_report.pdf India's tourism performance] United Nations World Tourism Organization (2013)</ref><ref>[http://www2.unwto.org/publication/yearbook-tourism-statistics-data-2008-2012-2014-edition Yearbook of Tourism Statistics, Data 2008&nbsp;– 2012, 2014 Edition] United Nations World Tourism Organization (2014)</ref> Less than 10% of international tourists visit the [[Taj Mahal]], with majority visiting other cultural, thematic and holiday circuits.<ref>RN Pandey, [http://statistics.unwto.org/sites/all/files/pdf/india_inbound_0.pdf Inbound Tourism Statistics of India] Ministry of Tourism, Govt of India (2012)</ref> Over 12 million Indian citizens take international trips each year for tourism, while domestic tourism within India adds about 740 million Indian travellers.<ref name=unwtoitp/> The combined international and domestic tourism contributed 5.92% of India's GDP, and 9.3% to its employment in 2011.<ref name=unwtoitp/><ref>The GDP contribution of international tourism is estimated at 2.8% by UNWTO, [http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/docpdf/statistics.pdf International Tourism Statistics]</ref> India has a fast-growing [[Medical tourism in India|medical tourism sector]] of its health care economy offering low cost health and long term care.<ref name = BMJ>{{cite journal |last=Mudur |first=Ganapati |date=June 2004 |title=Hospitals in India woo foreign patients |journal=[[British Medical Journal]] |volume=328 |issue= 7452|page=1338 |doi= 10.1136/bmj.328.7452.1338 |pmid=15178611 |pmc=420282}}</ref><ref>[http://communities.washingtontimes.com/neighborhood/travelers-notebook/2013/aug/18/medical-tourism-draws-americans-india/ Medical Tourism draws Americans to India] Washington Times (18 August 2013)</ref>

====Banking and finance====
{{Main|Finance in India}}
{{See also|Banking in India|Insurance in India}}
The Indian [[money market]] is classified into the organised sector, comprising private, public and foreign owned [[commercial bank]]s and [[cooperative]] banks, together known as ''scheduled banks'', and the unorganised sector, which includes individual or family owned indigenous bankers or [[Money lending|money lenders]] and [[non-banking financial company|non-banking financial companies]].<ref>{{Harvnb|Datt|Sundharam|2009|p=858}}</ref> The unorganised sector and [[microcredit]] are still preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes, like ceremonies and short duration loans.<ref name="Datt-6">{{Harvnb|Datt|Sundharam|2009|pp=838–839}}</ref>

Prime Minister [[Indira Gandhi]] [[nationalisation|nationalised]] 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure that the banks fulfill their social and developmental goals. Since then, the number of bank branches has increased from 8,260 in 1969 to 72,170 in 2007 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The total [[bank deposit]]s increased from {{INRConvert|59.1|b}} in 1970–71 to {{INRConvert|38309.22|b}} in 2008–09. Despite an increase of rural branches, from 1,860 or 22% of the total number of branches in 1969 to 30,590 or 42% in 2007, only 32,270 out of 500,000 villages are covered by a scheduled bank.<ref name="ghosh">{{cite web|title=Bank Nationalisation: The Record|work=Macroscan|url=http://www.macroscan.com/cur/jul05/cur210705Bank_Nationalisation.htm|publisher=Economic Research Foundation|date=21 July 2005|first=Jayati|last=Ghosh| accessdate = 2011-01-11}}</ref><ref name="Datt-7">{{Harvnb|Datt|Sundharam|2009|pp=839–842}}</ref>

India's gross domestic [[saving]] in 2006–07 as a percentage of GDP stood at a high 32.8%.<ref>{{Harvnb|Datt|Sundharam|2009|pp=334–335}}</ref> More than half of personal savings are invested in physical assets such as land, houses, cattle, and gold.<ref>{{cite web|url=http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN028982.pdf|format=PDF|title=Reforming India's Financial System|first=Diana|last=Farrell|author2=Susan Lund|publisher=United Nations Public Administration Network|accessdate=2011-01-11}}</ref> The government owned public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.<ref name="factual">{{cite news|url=http://www.livemint.com/2007/09/01001100/India-growth-story-is-attracti.html|title= India growth story is attracting talent from govt establishments|newspaper=Mint|date=1 September 2007|first=Jeetha|last=D'Silva|accessdate=2011-01-11}}</ref> Since liberalisation, the government has approved significant banking reforms. While some of these relate to nationalised banks, like encouraging mergers, reducing government interference and increasing profitability and competitiveness, other reforms have opened up the banking and insurance sectors to private and foreign players.<ref name="CIA"/><ref name="Datt-8">{{Harvnb|Datt|Sundharam|2009|pp=854–855}}</ref>

====Aviation====
{{Main|Aviation in India}}

==External trade and investment==
{{Further|Globalisation in India|List of the largest trading partners of India}}

===Global trade relations===
{{main|Foreign trade of India}}
[[File:2006Indian exports.PNG|thumb|350px|A map showing the global distribution of Indian exports in 2006 as a percentage of the top market (USA&nbsp;– $20.9 billion).]]

Until the liberalisation of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, while [[foreign direct investment]] (FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals; these approvals were needed for nearly 60% of new FDI in the industrial sector. The restrictions ensured that FDI averaged only around $200&nbsp;million annually between 1985 and 1991; a large percentage of the capital flows consisted of foreign aid, commercial borrowing and deposits of [[Non-resident Indian and person of Indian origin|non-resident Indians]].<ref name="tn-srinivasan">{{Cite journal|author=Srinivasan, T.N.|title=Economic Reforms and Global Integration|year=2002|version=17 January 2002|url=http://www.econ.yale.edu/%7Esrinivas/ec_reforms.pdf|format=PDF|publisher=Economic Growth Center, Yale University|accessdate=2009-06-21}}</ref> India's exports were stagnant for the first 15&nbsp;years after independence, due to general neglect of trade policy by the government of that period. Imports in the same period, due to industrialisation being nascent, consisted predominantly of machinery, raw materials and consumer goods.<ref>{{Harvnb|Panagariya|2008|pp=27–29}}</ref>

{{multiple image
| direction = vertical
| align = left
| width = 280
| footer = India's exports (top) and imports, by value, in 2013-2014.
| image1 =April 2013 to March 2014 Export commodities from India, by percent value in US$.png
| image2 =April 2013 to March 2014 Import commodities from India, by percent value in US$.png
}}
Since liberalisation, the value of India's international trade has increased sharply,<ref>{{Harvnb|Datt|Sundharam|2009|pp=747–748}}</ref> with the contribution of total trade in goods and services to the GDP rising from 16% in 1990–91 to 47% in 2008–10.<ref name="Trade">{{Harvnb|Panagariya|2008|p=109}}</ref><ref name="WTO profile">{{cite web|url=http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=IN|title=Trade profiles-India|publisher=[[World Trade Organization]]|accessdate=2012-02-07}}</ref> India accounts for 1.44% of exports and 2.12% of imports for merchandise trade and 3.34% of exports and 3.31% of imports for commercial services trade worldwide.<ref name="WTO profile"/> India's major trading partners are the European Union, China, the United States of America and the [[United Arab Emirates]].<ref name="Datt-14">{{Harvnb|Datt|Sundharam|2009|p=757}}</ref> In 2006–07, major export commodities included engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals. Major import commodities included crude oil and related products, machinery, electronic goods, gold and silver.<ref>{{cite web|url=http://commerce.nic.in/eidb/default.asp |title= Imports and Exports Databank |publisher=Ministry of Commerce and Industry, Government of India|accessdate=2010-04-05}}</ref> In November 2010, exports increased 22.3% year-on-year to {{INRConvert|850.63|b}}, while imports were up 7.5% at {{INRConvert|1251.33|b}}. Trade deficit for the same month dropped from {{INRConvert|468.65|b}} in 2009 to {{INRConvert|400.7|b}} in 2010.<ref>{{cite web|url=http://commerce.nic.in/tradestats/Indiastrade_press.pdf |title=India's Foreign Trade: November 2010 |work=Press Release|publisher=Ministry of Commerce and Industry, Government of India |date=3 January 2011 |accessdate=2011-01-11}}</ref>

India is a founding-member of [[General Agreement on Tariffs and Trade]] (GATT) since 1947 and its successor, the WTO. While participating actively in its general council meetings, India has been crucial in voicing the concerns of the [[developing country|developing world]]. For instance, India has continued its opposition to the inclusion of such matters as labour and environment issues and other [[non-tariff barriers to trade]] into the WTO policies.<ref name="wto">{{cite web|title=India & the World Trade Organization|url=http://www.indianembassy.org/policy/WTO/overview.html|archiveurl=https://web.archive.org/web/20050613080223/http://www.indianembassy.org/policy/WTO/overview.html|publisher=Embassy of India|archivedate=13 June 2005|accessdate = 2005-07-09}}</ref>

===Balance of payments===
[[File:Cumulative Current Account Balance.png|thumb|[[Cumulativity|Cumulative]] Current Account Balance 1980–2008 based on IMF data]]
Since independence, India's [[balance of payments]] on its [[current account]] has been negative. Since economic liberalisation in the 1990s, precipitated by a balance of payment crisis, India's exports rose consistently, covering 80.3% of its imports in 2002–03, up from 66.2% in 1990–91.<ref>{{Harvnb|Datt|Sundharam|2009|pp=763–765}}</ref> However, the global economic slump followed by a general deceleration in world trade saw the exports as a percentage of imports drop to 61.4% in 2008–09.{{sfn|Economic Survey|2010|pp=127–129}} India's growing oil import bill is seen as the main driver behind the large current account deficit,<ref name="RupeeOil"/> which rose to $118.7&nbsp;billion, or 11.11% of GDP, in 2008–09.{{sfn|Economic Survey|2010|p=127}} Between January and October 2010, India imported $82.1&nbsp;billion worth of crude oil.<ref name="RupeeOil">{{cite news|url=http://www.businessweek.com/news/2010-12-07/rupee-rally-falters-as-oil-rises-to-two-year-high-india-credit.html |title=Rupee Rally Falters as Oil Rises to Two-Year High |work=BusinessWeek |date=7 December 2010 |author=V. Ramakrishnan |accessdate=2011-01-11 |deadurl=yes |archiveurl=https://web.archive.org/web/20110111083311/http://www.businessweek.com:80/news/2010-12-07/rupee-rally-falters-as-oil-rises-to-two-year-high-india-credit.html |archivedate=11 January 2011 }}</ref>

Indian economy has run a trade deficit every year over 2002-2012 period, with a merchandise trade deficit of US$189 billion in 2011-12.<ref>[http://commerce.gov.in/publications/pdf/annualreport_overview-2012-13.pdf 2013 Annual Report] Ministry of Commerce, Govt of India (2013)</ref> Its trade with China has the largest deficit, about $31 billion in 2013.<ref>[http://articles.economictimes.indiatimes.com/2014-01-10/news/46066593_1_trade-deficit-indian-it-trade-data India's trade deficit with China mounts to $ 31.42 bn] The Economic Times (10 January 2014)</ref>

India's reliance on external assistance and concessional debt has decreased since liberalisation of the economy, and the [[debt service ratio]] decreased from 35.3% in 1990–91 to 4.4% in 2008–09.{{sfn|Economic Survey|2010|pp=142–144}} In India, [[External Commercial Borrowing]]s (ECBs), or commercial loans from non-resident lenders, are being permitted by the Government for providing an additional source of funds to Indian corporates. The [[Ministry of Finance]] monitors and regulates them through ECB policy guidelines issued by the Reserve Bank of India under the [[Foreign Exchange Management Act]] of 1999.<ref>{{cite web|url=http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/27ECB010709_F.pdf|title=Master Circular on External Commercial Borrowings and Trade Credits|publisher=Reserve Bank of India |accessdate=2011-01-11|format=PDF}}</ref> India's [[foreign exchange reserve]]s have steadily risen from $5.8&nbsp;billion in March 1991 to $318.6&nbsp;billion in December 2009. {{sfn|Economic Survey|2010|p=132}} In 2012, the United Kingdom announced an end to all financial aid to India, citing the growth and robustness of Indian economy.<ref>[http://www.ft.com/intl/cms/s/0/30203e68-2a55-11e2-99bb-00144feabdc0.html#axzz396DRjDNU UK to end financial aid to India] The Financial Times (9 November 2012)</ref><ref>{{cite web|url=http://in.reuters.com/article/2014/09/05/india-cenbank-forex-reserves-idINS8N0QH02M20140905|title=TABLE-India's forex reserves rise to $318.64 bln as of Aug 29 - cbank|publisher=|accessdate=3 March 2015}}</ref>

===Foreign direct investment===
{{outdated section|date=October 2015}}
{{main|Foreign direct investment in India}}
{| style="margin:1em; background:#f9f9f9; border:1px #aaa solid; border-collapse:collapse; font-size:90%; float:right;"
|+'''''Share of top five investing countries in FDI inflows. (2000–2010)<ref name="fdi-1">{{cite web|title=FDI in India Statistics |url=http://dipp.nic.in/fdi_statistics/india_FDI_August2010.pdf |publisher=[[Ministry of Commerce and Industry, Government of India]] |accessdate=2010-11-22 |deadurl=yes |archiveurl=https://web.archive.org/web/20101122103911/http://www.dipp.nic.in:80/fdi_statistics/india_FDI_August2010.pdf |archivedate=22 November 2010 }}</ref> '''''
|- style="background:lightblue;"
! Rank !! Country !! Inflows<br /> (million USD) !! Inflows (%)
|-
|1 || Mauritius || 50,164 || 42.00
|-
|2 || Singapore || 11,275 || 9.00
|-
|3 || USA || 8,914 || 7.00
|-
|4 || UK || 6,158 || 5.00
|-
|5 || Netherlands || 4,968 || 4.00
|}
IN TO INDIA
As the third-largest economy in the world in PPP terms, India has attracted [[foreign direct investment]];<ref name="financialexpress1">{{cite news|url=http://www.financialexpress.com/news/India-2nd-best-country-for-biz-investment-Survey/343344/ |title=India 2nd best country for biz investment: Survey|newspaper=[[The Financial Express (India)|The Financial Express]] |accessdate=2008-11-03}}</ref> During the year 2011, FDI inflow into India stood at $36.5&nbsp;billion, 51.1% higher than 2010 figure of $24.15&nbsp;billion. India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI
<ref name="news.indiamart.com">{{cite news|url=http://news.indiamart.com/story/finmin-considers-three-single-brand-retail-fdi-proposals-169557.html|title= FinMin considers three single-brand retail FDI proposals}}</ref> policies were a significant hindrance. Over time, India has adopted a number of FDI reforms.<ref name="financialexpress1"/> India has a large pool of skilled managerial and technical expertise. The size of the [[Standard of living in India|middle-class]] population stands at 300&nbsp;million and represents a growing consumer market.<ref>{{cite web|url=http://www.mckinsey.com/mgi/mginews/bigspenders.asp |title=Next Big Spenders: India's Middle Class |publisher=[[McKinsey & Company]] |accessdate=2010-04-05}}</ref>

India's liberalised its FDI policy in 2005, allowing up to a 100% FDI stake in ventures. Industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI. The upward moving growth curve of the real-estate sector owes some credit to a booming economy and liberalised FDI regime. In March 2005, the government amended the rules to allow 100% FDI in the construction sector, including built-up infrastructure and construction development projects comprising housing, commercial premises, hospitals, educational institutions, recreational facilities, and city- and regional-level infrastructure.<ref>{{cite news|url=http://www.hindu.com/2005/02/25/stories/2005022506990100.htm |title=100 per cent FDI in construction industry automatic route |newspaper=[[The Hindu]] |date=25 February 2005 |first=Sushma|last=Ramachandran |accessdate=2010-12-17 |location=Chennai, India}}</ref> Over 2012-14, India extended these reforms to defense, telecom, oil, retail, aviation and a number of other sectors.<ref>[http://timesofindia.indiatimes.com/business/india-business/Govt-unleashes-big-bang-FDI-reforms-opens-up-defence/articleshow/21110866.cms Govt unleashes big-bang FDI reforms, opens up defence] The Times of India (17 July 2014)</ref><ref>[http://in.reuters.com/article/2012/09/14/india-economy-retail-fdi-reform-idINDEE88D08M20120914 Govt allows FDI multi-brand retail, aviation in bold reform push] Reuters (14 September 2012)</ref>

During 2000–10, the country attracted $178&nbsp;billion as FDI.<ref>{{cite web|url=http://www.dipp.nic.in/fdi_statistics/india_fdi_index.htm |title=India FDI Fact sheet&nbsp;– September 2010 |publisher=Department of Industrial Policy & Promotion, Ministry of Commerce and Industry |accessdate=2010-12-21 |deadurl=yes |archiveurl=https://web.archive.org/web/20101216063528/http://www.dipp.nic.in:80/fdi_statistics/india_fdi_index.htm |archivedate=16 December 2010 }}</ref> The inordinately high investment from [[Mauritius]] is due to routing of international funds through the country given significant tax advantages; double taxation is avoided due to a [[Double taxation#Double taxation avoidance agreement signed by India|tax treaty]] between India and Mauritius, and Mauritius is a capital gains [[tax haven]], effectively creating a zero-taxation FDI channel.<ref>{{cite news|url=http://www.business-standard.com/india/news/jaimini-bhagwati-rationalising-fdi-taxes/418512/|title=Rationalising FDI taxes|newspaper=[[Business Standard]]|date=17 December 2010|first=Jaimini|last=Bhagwati|accessdate=2010-12-21}}</ref>

'''From India'''
Since 2000, Indian companies have expanded overseas, investing FDI and creating jobs outside India. Over the 2006-2010 period, FDI by Indian companies outside India amounted to 1.34 per cent of its GDP.<ref>Shah and Patnaik, [http://www.imf.org/external/pubs/ft/wp/2011/wp1107.pdf India's financial globalisation] IMF (2012)</ref> Indian companies have deployed FDI and started operations in the United States,<ref>[http://online.wsj.com/news/articles/SB10001424052702304655304579552181391629024 Mahindra Expands Effort to Counter Global Rivals with U.S. Engineering] ''The Wall Street Journal'' (9 May 2014)</ref> while others have expanded in Europe and Africa.<ref>[http://businesstoday.intoday.in/story/bt-500-indian-inc-goes-global/1/189144.html A Slice of World Action] ''Business Today'' (11 November 2012)</ref> The Indian company [[Tata Group|Tata]] is United Kingdom's largest manufacturer and private sector employer.<ref>[http://www.economist.com/node/21528653 India's industrial outpost Tata for now] ''The Economist'' (10 September 2011)</ref><ref>[http://www.telegraph.co.uk/finance/newsbysector/industry/9722673/JLRs-Ratan-Tata-warns-on-UK-competitiveness.html JLR's Ratan Tata warns on UK competitiveness] ''The Telegraph'' (5 December 2012)</ref>

==Currency==
[[File:RBI-Tower.jpg|thumb|150px|The RBI's new headquarters in Mumbai, Maharashtra]]
{{Main|Indian rupee|Reserve Bank of India}}
{| class="wikitable floatleft" style="text-align: center; "
|-
! Year !! INR₹ per US$<br>(''average annual'')<ref>RBI Handbook of Statistics on Indian Economy</ref>
|-
| 1975 || 9.4058
|-
| 1980 || 7.8800
|-
| 1985 || 12.3640
|-
| 1990 || 17.4992
|-
| 1995 || 32.4198
|-
| 2000 || 44.9401
|-
| 2005 || 44.1000
|-
| 2010 || 45.7393
|-
| 2013 || 58.5515
|-
| 2014 || 61.4000
|-
| 2015 || 64.05
|}

The [[Indian rupee]] ({{INR}}) is the only [[legal tender]] in India, and is also accepted as legal tender in the neighbouring Nepal and Bhutan, both of which peg their currency to that of the Indian rupee. The rupee is divided into 100 paisas. The highest-denomination banknote is the {{INR}} 1,000 note; the lowest-denomination coin in circulation is the 50 paise coin;<ref>{{cite web|url=http://www.rbi.org.in/currency/FAqs.html|title=Your Guide to Money Matters |publisher=Reserve Bank of India |accessdate=2011-01-11}}</ref> with effect from 30 June 2011 all denominations below 50 paise have ceased to be legal currency.<ref>{{cite news|url=http://timesofindia.indiatimes.com/business/india-business/25-paise-and-below-coins-not-acceptable-from-June-30/articleshow/7191738.cms|title=25 paise and below coins not acceptable from June 30&nbsp;– The Times of India |newspaper=Times of India |accessdate=2011-01-26}}</ref><ref>{{cite web|url=http://profit.ndtv.com/news/show/govt-to-scrap-25-paise-coins-132853|title=Govt to scrap 25 paise coins|publisher=NDTV|accessdate=2011-01-26}}</ref>
India's monetary system is managed by the Reserve Bank of India (RBI), the country's [[central bank]].<ref>{{Harvnb|Datt|Sundharam|2009|p=812}}</ref> Established on 1 April 1935 and nationalised in 1949, the RBI serves as the nation's monetary authority, regulator and supervisor of the monetary system, banker to the government, custodian of foreign exchange reserves, and as an issuer of currency. It is governed by a central board of directors, headed by a governor who is appointed by the Government of India.<ref>{{Harvnb|Datt|Sundharam|2009|pp=887–888}}</ref>

The rupee was linked to the [[British pound]] from 1927 to 1946 and then the U.S. dollar till 1975 through a [[fixed exchange rate]]. It was devalued in September 1975 and the system of fixed par rate was replaced with a basket of four major international currencies&nbsp;– the British pound, the U.S. dollar, the [[Japanese yen]] and the [[Deutsche mark]].<ref>{{Harvnb|Datt|Sundharam|2009|p=822}}</ref> In 1991, after the collapse of its largest trading partner Soviet Union, India faced the major foreign exchange crisis and the rupee was devalued by around 19% in two stages on 1 and 2 July. In 1992 a Liberalized Exchange Rate Mechanism&nbsp;– LERMS- was introduced. Under LERMS exporters had to surrender 40 percent of their foreign exchange earnings to the RBI at the RBI determined exchange rate. The balance 60% was allowed to be converted at the market determined exchange rate. In 1994 the rupee was convertible on the current account, with some capital controls.<ref>International Monetary Fund (1996), {{Google books|a0IuF5RmrbEC|1996 Annual Report on Exchange Arrangements & Exchange Restrictions}}, pages 224-226</ref>

After the sharp devaluation in 1991 and transition to current account convertibility in 1994, the value of the rupee is largely determined by the market forces. The rupee has been fairly stable during the decade 2000 to 2010. In September 2013, the rupee touched an all-time low 68.27 to the U.S. dollar.<ref>[http://finance.yahoo.com/echarts?s=USDINR%3DX+Interactive#symbol=USDINR=X;range=2y USD INR] Currency Conversion Rates, Yahoo</ref>

==Income and consumption==
{{Main|Income in India}}
[[File:2014 Gini Index World Map, income inequality distribution by country per World Bank.svg|thumb|280px|Gini Index of India compared to other countries per World Bank data tables as of 2014.<ref>Table 2.9 of [http://wdi.worldbank.org/table/2.9 World Development Indicators: Distribution of income or consumption] The World Bank</ref>]]

India's [[gross national income]] per capita had experienced high growth rates since 2002. India's Per Capita Income has tripled from Rs. 19,040 in 2002–03 to Rs. 53,331 in 2010–11, averaging 13.7% growth over these eight years peaking 15.6% in 2010–11.<ref>{{cite news|url=http://articles.timesofindia.indiatimes.com/2012-05-02/india-business/31537296_1_affordability-rental-income-home-price|title= Homes become more affordable in last 10 years|publisher=The Times of India|date=2 May 2012}}</ref> However growth in the inflation adjusted Per capita income of the nation slowed to 5.6% in 2010–11, down from 6.4% in the previous year. These consumption levels are on an individual basis, not household.<ref>{{cite web|url=http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/0,,menuPK:336998~pagePK:149018~piPK:149093~theSitePK:336992,00.html|title= Poverty reduction and equity (2010)|publisher=World Bank|date=July 2012|accessdate=2012-07-11}}</ref> On a household basis, the average income in India was $6,671 per household in 2011.<ref>[http://www.euromonitor.com/medialibrary/PDF/Book_WCIEP0.pdf Table 3.4, World Consumer Income and Expenditure Patterns - Annual Household Income] Euro Monitor International (2013)</ref>

Per 2011 census, India has about 330&nbsp;million houses and 247&nbsp;million households. The household size in India has dropped in recent years, with 2011 census reporting 50% of households have 4 or less members. The average per 2011 census was 4.8 members per household, and included surviving grandparents.<ref name=hhc>{{cite web|title=Final Figures of Houselisting & Housing Census, 2011 Released|publisher=Census 2011, Government of India|date=13 March 2012|url=http://pib.nic.in/newsite/erelease.aspx?relid=80811}}</ref><ref>{{cite news|title=Median household size drops below 4 in cities|publisher=Time of India|date=25 March 2012|url=http://articles.timesofindia.indiatimes.com/2012-03-25/india/31236370_1_household-family-size-census}}</ref> These households produced a GDP of about $1.7&nbsp;trillion.<ref>{{cite web|title=Country Report&nbsp;– India (2010)|publisher=The World Bank|year=2011|url=http://www.worldbank.org/en/country/india}}</ref> The household consumption patterns per 2011 census: approximately 67% of households use firewood, crop residue or cow dung cakes for cooking purposes; 53% do not have sanitation or drainage facilities on premises; 83% have water supply within their premises or 100&nbsp;metres from their house in urban areas and 500&nbsp;metres from the house in rural areas; 67% of the households have access to electricity; 63% of households have landline or mobile telephone connection; 43% have a television; 26% have either a two-wheel (motorcycle) or four wheel (car) vehicle. Compared to 2001, these income and consumption trends represent moderate to significant improvements.<ref name=hhc/> One report in 2010 claimed that the number of high income households has crossed lower income households.<ref>{{cite news|first=Prabhakar|last=Sinha|url=http://articles.timesofindia.indiatimes.com/2010-08-01/india/28285817_1_households-middle-class-slowdown |title='India has more rich people than poor now' |newspaper=The Times of India|date=1 August 2010 |accessdate=2010-11-15}}</ref>

[[File:2013 Gross National Income GNI per capita Purchasing Power Parity PPP per World Bank, India compared.svg|thumb|280px|Per capita gross national income of India in 2013 compared to other countries, on Purchasing Power Parity basis, per World Bank data.<ref>[http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_value-last&sort=desc GNI per capita, PPP (current international $)] The World Bank (July 2014)</ref>]]
;Poverty
{{Main|Poverty in India}}
The World Bank in 2010, using its older 2005 methodology, estimated about 400&nbsp;million people in India, as compared to 1.29&nbsp;billion people worldwide, live on less than $1.25 (PPP) per day. The World Bank reviewed and proposed revisions in May 2014, to its poverty calculation methodology and purchasing power parity basis for measuring poverty worldwide, including India. According to this revised methodology, the world had 872.3 million people below the new poverty line, of which 179.6 million people lived in India. In other words, India with 17.5% of total world's population, had 20.6% share of world's poorest in 2013.<ref name=sdcnk>Note: 24.6% rate is based on '''2005 PPP''' at $1.25 per day, International dollar basis, {{cite book|last1=The World Bank|title=A measured approach to ending poverty and boosting shared prosperity|date=2015|publisher=World Bank Group|isbn=978-1-4648-0361-1|page=50|url=https://openknowledge.worldbank.org/bitstream/handle/10986/20384/9781464803611.pdf}}</ref> According to a 2005-2006 survey,<ref>[http://www.unicef.org/india/nutrition.html Nutrition], Fast Facts, UNICEF (2009)</ref> India had about 61 million children under the age of 5 who were chronically malnourished. A 2011 UNICEF report stated that that between 1990 and 2010, India achieved a 45 percent reduction in under age 5 mortality rates, and now ranks 46 in 188 countries on this metric.<ref>{{cite web|title=India Statistics|publisher=UNICEF, United Nations|year=2011|url=http://www.unicef.org/infobycountry/india_statistics.html}}</ref>

Since the early 1950s, successive governments have implemented various schemes to alleviate poverty, under central planning, that have met with partial success.<ref name="survey">{{cite web|title=Economic Survey 2004–2005|url=http://indiabudget.nic.in/es2004-05/esmain.htm| accessdate = 2006-07-15}}</ref> In 2005, Indian government enacted the [[Mahatma Gandhi National Rural Employment Guarantee Act]], guaranteeing 100&nbsp;days of minimum wage employment to every rural household in all the districts of India.<ref name="Panagariya 2008 146">{{Harvnb|Panagariya|2008|p=146}}</ref> In 2011, this Rural Employment Guarantee programme was widely criticised as no more effective than other poverty reduction programs in India. Despite its best intentions, MGNREGA is beset with controversy about corrupt officials, deficit financing as the source of funds, poor quality of infrastructure built under this program, and unintended destructive effect on poverty.<ref name=wsj1>{{cite news|title=India's Boom Bypasses Rural Poor|publisher=The Wall Street Journal|date=29 April 2011|author1=Tom Wright |author2=Harsh Gupta |url=http://online.wsj.com/article/SB10001424052748704081604576143671902043578.html}}</ref><ref name=econ1>{{cite news|title=Indian rural welfare&nbsp;– Digging holes|publisher=The Economist|date=5 November 2011|url=http://www.economist.com/node/21536642}}</ref><ref>{{cite news|title=Rural India enjoys consumption boom|publisher=The Financial Times|date=29 February 2012|author1=James Fontanella-Khan |author2=James Lamont |url=http://www.ft.com/intl/cms/s/0/04473296-5865-11e1-9f28-00144feabdc0.html#axzz1qAG58tUf}}</ref> Other studies suggest that the Rural Employment Guarantee welfare program has helped in reducing rural poverty in some cases.<ref>Sarkar & Kumar (2011), [http://purl.umn.edu/119395 Impact of MGNREGA on Reducing Rural Poverty and Improving Socio-economic Status of Rural Poor: A Study in Burdwan District of West Bengal], Agricultural Economics Research Review, Vol 24</ref><ref>Swain & Ray (2013), Social welfare through guaranteed wage employment: experience of National Rural Employment Guarantee Scheme in an Indian state, Journal of International and Comparative Social Policy, 29(1), 79-90</ref> Yet other studies report that India's economic growth has been the driver of sustainable employment and poverty reduction, but a sizable population remains in poverty.<ref>Aggarwal & Kumar (November 2012), [http://sswa.unescap.org/pdf/sswa_development_paper_1206_nov2012.pdf Structural change, industrialization and poverty reduction: the case of India], in United Nation's UNIDO workshop "The Untold Story: Structural Change for Poverty Reduction–The Case of the BRICS", Vienna, 16–17 August (pp 1-68)</ref><ref>Kotwal, Ramaswami & Wadhwa (2011), Economic liberalization and Indian economic growth: What's the evidence?, Journal of Economic Literature, Vol. 49, No. 4, 1152-1199</ref>

==Employment==
{{See also|Labour in India|Indian labour law|Child labour in India}}
Agricultural and allied sectors accounted for about 52.1% of the total workforce in 2009–10. While agriculture employment has fallen over time in percentage of labor employed, services which includes construction and infrastructure have seen a steady growth accounting for 20.3% of employment in 2012&ndash;13.<ref name="jobless"/> Of the total workforce, 7% is in the organised sector, two-thirds of which are in the government controlled public sector.<ref>{{Harvnb|Datt|Sundharam|2009|pp=423–424}}</ref> About 51.2% of the labor in India is self-employed.<ref name="jobless"/> According to a 2005&ndash;06 survey, there is a gender gap in employment and salaries. In rural areas, both men and women are primarily self-employed, mostly in agriculture. In urban areas, salaried work was the largest source of employment for both men and women in 2006.<ref>Desai, Sonalde, Amaresh Dubey, B.L. Joshi, Mitali Sen, Abusaleh Shariff and Reeve Vanneman (201) [http://ihds.umd.edu/IHDS_files/04HDinIndia.pdf India Human Development in India: Challenges for a Society in Transition], Oxford University Press, page 40-44</ref>

Unemployment in India is characterised by [[Unemployment types#Hidden unemployment|chronic (disguised) unemployment]]. Government schemes that target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem, by providing financial assistance for setting up businesses, skill honing, setting up public sector enterprises, reservations in governments, etc. The decline in organised employment due to the decreased role of the public sector after liberalisation has further underlined the need for focusing on better education and has also put political pressure on further reforms.{{sfn|Economic Survey|2010|pp=275–277}}<ref name="Datt-11">{{Harvnb|Datt|Sundharam|2009|pp=434–436}}</ref> India's labour regulations are heavy even by developing country standards and analysts have urged the government to abolish or modify them in order to make the environment more conducive for employment generation.<ref>{{Harvnb|Datt|Sundharam|2009|p=431}}</ref><ref>{{cite news|url=http://news.bbc.co.uk/2/hi/south_asia/4103554.stm| title=Why India needs labour law reform|publisher=BBC |date=27 June 2005|author=[[Kaushik Basu]]|accessdate=2010-12-16}}</ref> The [[Eleventh Five-Year Plan (India)|11th five-year plan]] has also identified the need for a congenial environment to be created for employment generation, by reducing the number of permissions and other bureaucratic clearances required.<ref>{{Harvnb|Datt|Sundharam|2009|p=434}}</ref> Further, inequalities and inadequacies in the education system have been identified as an obstacle preventing the benefits of increased employment opportunities from reaching all sectors of society.<ref>{{Harvnb|Drèze|Sen|1996|p=39}}</ref>

[[Child labour in India]] is a complex problem that is basically rooted in poverty. The Indian government has implemented, since the 1990s, a variety of programs to eliminate child labor. These have included setting up schools, launching free school lunch program, setting up special investigation cells and others.<ref name="chilab">{{cite web|url=http://www.indianembassy.org/policy/Child_Labor/childlabor.htm#intro |archiveurl=https://web.archive.org/web/20071023064701/http://www.indianembassy.org/policy/Child_Labor/childlabor.htm#intro |archivedate=23 October 2007 |title=Child Labour and India&nbsp;— Embassy of India |publisher=Embassy of India |accessdate=2009-03-13}}</ref><ref>{{Harvnb|Drèze|Sen|1996|pp=130–131}}</ref> Desai et al. state that recent studies on child labour in India have found some pockets of industries in which children are employed, but overall, relatively few Indian children are employed. Child labour below the age of 10 is now rare. In the 10-14 group, the latest surveys find only 2% of children working for wage, while another 9% work within their home or rural farms assisting their parents in times of high work demand such as sowing and harvesting of crops.<ref>Desai, Sonalde, Amaresh Dubey, B.L. Joshi, Mitali Sen, Abusaleh Shariff and Reeve Vanneman (201) [http://ihds.umd.edu/IHDS_files/04HDinIndia.pdf India Human Development in India: Challenges for a Society in Transition], Oxford University Press, page 131</ref>

India has the second largest diaspora around the world, an estimated 25 million people,<ref>[http://moia.gov.in/accessories.aspx?aid=10 India and its diaspora] Ministry of Overseas Indian Affairs, India</ref> many of whom work overseas and remit funds back to their families. The Middle East region is the largest source of employment of expat Indians. The crude oil production and infrastructure industry of Saudi Arabia employs over 2 million expat Indians. Cities such as Dubai and Abu Dhabi in United Arab Emirates alone have employed another 2 million Indian construction workers during its construction boom in recent decades.<ref>Leone Lakhani, [http://edition.cnn.com/2014/05/15/business/dubai-indians-expats-elections/ Dubai's expat Indians: The world's most productive foreign workers] CNN (19 May 2014)</ref> In 2009–10, [[Remittances to India|remittances]] from Indian migrants overseas stood at {{INRConvert|2500|b}}, the highest in the world, but their share in FDI remained low at around 1%.<ref>{{cite web|url=http://www.tribuneindia.com/2011/20110110/main1.htm|title=NRIs don't invest as much as they remit, says Montek|work=The Tribune |location=India|date=9 January 2011|first=Ajay|last=Banerjee|accessdate=2011-01-13}}</ref>

==Economic trends and issues==
[[File:Cyber Green Building, Gurgaon, Haryana, India - 20070613.jpg|thumb|Commercial office buildings in [[Gurgaon]].]]
{{quotation|With 1.2 billion people and the world’s fourth-largest economy, India’s recent growth and development has been one of the most significant achievements of our times. Over the six and half decades since independence, the country has brought about a landmark agricultural revolution that has transformed the nation from chronic dependence on grain imports into a global agricultural powerhouse that is now a net exporter of food. Life expectancy has more than doubled, literacy rates have quadrupled, health conditions have improved. India will soon have the largest and youngest workforce the world has ever seen. At the same time, the country is in the midst of a massive wave of urbanization as some 10 million people move to towns and cities each year in search of jobs and opportunity. It is the largest rural-urban migration of this century. Massive investments will be needed to create the jobs, housing, and infrastructure to meet soaring aspirations and make towns and cities more livable and green.|World Bank: "India Country Overview 2013"<ref name="wboverview">{{cite web|url=http://www.worldbank.org/en/country/india/overview|title=India Country Overview 2013|year=2014|publisher=World Bank|accessdate=2014-07-28}}</ref>}}

===Agriculture===
{{Main|Agriculture in India}}
Agriculture is an important part of Indian economy. In 2008, a New York Times article claimed, with the right technology and policies, India could contribute to feeding not just itself but the world. However, agricultural output of India lags far behind its potential.<ref name="nytagriculture">{{cite news|url=http://www.nytimes.com/2008/06/22/business/22indiafood.html?_r=1|title=The Food Chain in Fertile India, Growth Outstrips Agriculture|newspaper=The New York Times|date=22 June 2008|first=Somini|last=Sengupta|accessdate=2010-03-29}}</ref> The low productivity in India is a result of several factors. According to the World Bank, India's large [[agricultural subsidies]] are distorting what farmers grow and they are hampering productivity-enhancing investment. While overregulation of agriculture has increased costs, price risks and uncertainty, governmental intervention in labour, land, and credit markets are hurting the market. Infrastructure such as rural roads, electricity, ports, food storage, retail markets and services are inadequate.<ref name="agriculturepriorities">{{cite web|url=http://go.worldbank.org/8EFXZBL3Y0|title=India: Priorities for Agriculture and Rural Development|publisher=World Bank|accessdate=2011-01-08}}</ref> Further, the average size of land holdings is very small, with 70% of holdings being less than one hectare in size.<ref>{{Harvnb|Panagariya|2008|p=318}}</ref> Irrigation facilities are inadequate, as revealed by the fact that only 39% of the total cultivable land was irrigated as of 2010,<ref name="irrigation"/> resulting in farmers still being dependent on rainfall, specifically the [[Monsoon of India|monsoon season]], which is often inconsistent and unevenly distributed across the country.<ref>{{Harvnb|Datt|Sundharam|2009|p=502}}</ref> Farmer incomes are low also in part because of lack of food storage and distribution infrastructure. A third of India's agriculture produce is lost from spoilage.<ref name="India's Food Transportation Ordeal"/>

===Corruption===
[[File:Transparency international 2014.png|thumb|250px|[[Corruption Perceptions Index]] for India compared to other countries, 2014.]]
{{Main|Corruption in India|Indian black money}}

Corruption has been one of the pervasive problems affecting India. A 2005 study by [[Transparency International]] (TI) found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get a job done in a public office in the previous year.<ref name="2005-TI-study"/> A follow-on 2008 TI study found this rate to be 40 percent.<ref>{{cite web|title=India Corruption Study&nbsp;– 2008|publisher=Transparency International|year=2008|url=http://www.transparencyindia.org/resource/survey_study/India%20Corruptino%20Study%202008.pdf}}</ref> In 2011, Transparency International ranked India at 95th place amongst 183 countries in perceived levels of public sector corruption and in 2014 India saw a reduction in corruption and improved the ranking to 85th place.<ref name="transparency1">{{cite web|url=http://cpi.transparency.org/cpi2011/interactive2/| title= Corruption Perceptions Index 2011|publisher=Transparency International|accessdate=2012-07-09}}</ref>

In 1996, [[red tape]], bureaucracy and the [[Licence Raj]] were suggested as a cause for the institutionalised corruption and inefficiency.<ref>{{Harvnb|Drèze|Sen|1996|p=180}}</ref> More recent reports<ref name=kpmg2011>{{cite web|title=Survey on Bribery and Corruption&nbsp;– Impact on Economy and Business Environment|publisher=KPMG|year=2011|url=http://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/KPMG_Bribery_Survey_Report_new.pdf}}</ref><ref name=WFR2011>{{cite web|title=Corruption in India|publisher=The World Finance Review|author=Debroy and Bhandari|year=2011|url=http://www.worldfinancialreview.com/?p=1575}}</ref><ref>{{cite news|title=Corruption in India&nbsp;– A rotten state|publisher=The Economist|date=10 March 2011|url=http://www.economist.com/node/18332796}}</ref> suggest the causes of [[corruption in India]] include excessive regulations and approval requirements, mandated spending programs, monopoly of certain goods and service providers by government controlled institutions, bureaucracy with discretionary powers, and lack of transparent laws and processes.

The [[Right to Information Act]] (2005) which requires government officials to furnish information requested by citizens or face punitive action, computerisation of services, and various central and state government acts that established vigilance commissions, have considerably reduced corruption and opened up avenues to redress grievances.<ref name="2005-TI-study">{{cite web|url=http://www.cmsindia.org/cms/events/corruption.pdf|format=PDF| title= India Corruption Study 2005| author=Transparency International India| publisher=Centre for Media Studies|accessdate = 2008-03-14| archiveurl = https://web.archive.org/web/20070415110720/http://www.cmsindia.org/cms/events/corruption.pdf| archivedate =15 April 2007}}</ref>

In 2011, the Indian government concluded that most spending fails to reach its intended recipients. A large, cumbersome and tumor-like bureaucracy sponges up or siphons off spending budgets.<ref name="bajuraj">{{cite news|url=http://www.economist.com/displaystory.cfm?story_id=10804248|title= India's civil service: Battling the babu raj|work=The Economist|date=6 March 2008|accessdate=2011-01-08}}</ref> India's absence rates are one of the worst in the world; one study found that 25% of public sector teachers and 40% of government owned public sector medical workers could not be found at the workplace.<ref>{{cite web|url=http://econ.ucsd.edu/~kamurali/teachers%20and%20medical%20worker%20incentives%20in%20india.pdf |title=Teachers and Medical Worker Incentives in India |first=Karthik|last=Muralidharan |format=PDF |publisher=University of California |accessdate=2009-06-21 |deadurl=yes |archiveurl=https://web.archive.org/web/20090326211644/http://econ.ucsd.edu/~kamurali/teachers%20and%20medical%20worker%20incentives%20in%20india.pdf |archivedate=26 March 2009 }}</ref><ref>{{cite news|url=http://news.bbc.co.uk/1/hi/world/south_asia/4051353.stm|title=Combating India's truant teachers|publisher=BBC |date=29 November 2004|first=Kaushik|last=Basu|accessdate=2011-01-09}}</ref> Similarly, there are many issues facing Indian scientists, with demands for transparency, a [[meritocratic]] system, and an overhaul of the bureaucratic agencies that oversee science and technology.<ref name="Nature">{{cite web|last= Jayaraman |first=K.S. |url=http://www.nature.com/news/2009/091109/full/462152a.html|title=Report row ousts top Indian scientist |publisher=Nature | date=9 November 2009 |accessdate=19 June 2012}}</ref>

The Indian economy has an [[underground economy]], with a 2006 report alleging that the [[Swiss Bankers Association]] suggested India topped the worldwide list for [[Indian black money|black money]] with almost $1,456&nbsp;billion stashed in Swiss banks. This amounts to 13 times the country's total external debt.<ref>{{cite web|url=http://www.deccanherald.com/content/134580/laundering-black-money.html|title=Laundering black money|work=Deccan Herald |location=India|date=4 February 2011|author=[[Kuldip Nayar]]|accessdate=2011-02-06}}</ref><ref>{{cite web|url=http://www.thehindubusinessline.in/2010/08/13/stories/2010081350370900.htm|title=Black, bold and bountiful|publisher=The Hindu Business Line|date=13 August 2010|author=V. Venkateswara Rao|accessdate=2011-02-06}}</ref> These allegations have been denied by Swiss Banking Association. James Nason, the Head of International Communications for Swiss Banking Association, suggests "The (black money) figures were rapidly picked up in the Indian media and in Indian opposition circles, and circulated as gospel truth. However, this story was a complete fabrication. The Swiss Bankers Association never published such a report. Anyone claiming to have such figures (for India) should be forced to identify their source and explain the methodology used to produce them."<ref>{{cite news|title=No 'black money' statistics exist: Swiss banks|publisher=The Times of India|date=13 September 2009|url=http://articles.timesofindia.indiatimes.com/2009-09-13/india/28092452_1_james-nason-swiss-bankers-association-sba-s-head}}</ref><ref>{{cite news|title=Banking secrecy spices up Indian elections|publisher=SWISSINFO&nbsp;– A member of Swiss Broadcasting Corporation|date=14 May 2009|url=http://www.swissinfo.ch/eng/politics/foreign_affairs/Banking_secrecy_spices_up_Indian_elections.html?cid=7396340}}</ref>

===Education===
{{Main|Education in India}}

India has made huge progress in terms of increasing primary education attendance rate and expanding [[Literacy in India|literacy]] to approximately three-fourths of the population.<ref name="wbie">{{cite web|url=http://go.worldbank.org/OSFVRGA240|title=Education in India|publisher=World Bank|accessdate=2011-01-13}}</ref> India's literacy rate had grown from 52.2% in 1991 to 74.04% in 2011. The right to education at elementary level has been made one of the fundamental rights under the [[Eighty-Sixth Amendment of the Constitution of India|eighty-sixth Amendment]] of 2002, and legislation has been enacted to further the objective of providing free education to all children.{{sfn|Economic Survey|2010|pp=280–281}} However, the literacy rate of 74% is still lower than the worldwide average and the country suffers from a high dropout rate.<ref name="elephant">{{cite news|url=http://www.economist.com/specialreports/displayStory.cfm?story_id=12749735|title=A special report on India: An elephant, not a tiger|date=11 December 2008|work=The Economist|accessdate=2011-01-17}}</ref> Further, the literacy rates and educational opportunities vary by region, gender, urban and rural areas, and among different social groups.<ref>{{Harvnb|Drèze|Sen|1996|pp=114–115}}</ref><ref>[http://censusindia.gov.in/2011-prov-results/data_files/india/Final_PPT_2011_chapter6.pdf Ranking of states and union territories by lireacy rate: 2011] Census of India, Ministry of Home Affairs, Government of India (2013)</ref>

===Economic disparities===
{{Main|Economic disparities in India|Poverty in India}}
[[File:35 India States and Union Territories GDP per capita on PPP basis in 2011.svg|thumb|260px|Economic disparities among the States and Union Territories of India, on GDP per capita, [[Purchasing power parity|PPP basis]] in 2011.]]

{{quotation|Poverty rates in India’s poorest states are three to four times higher than those in the more advanced states. While India’s average annual per capita income was $1,410 in 2011&nbsp;– placing it among the poorest of the world’s middle-income countries&nbsp;– it was just $436 in Uttar Pradesh (which has more people than Brazil) and only $294 in Bihar, one of India’s poorest states.|World Bank: India Country Overview 2013<ref name="wboverview"/>}}

A critical problem facing India's economy is the sharp and growing regional variations among India's different states and territories in terms of poverty, availability of infrastructure and socio-economic development.<ref name="Datt-13">{{Harvnb|Datt|Sundharam|2009|pp=474–475}}</ref> Six low-income states&nbsp;– [[Bihar]], Chhattisgarh, [[Jharkhand]], Madhya Pradesh, [[Odisha]] and [[Uttar Pradesh]]&nbsp;– are home to more than one-third of India's population.<ref name="wbstrategy">{{cite web|url=http://www.ukibc.com/ukindia2/files/India60.pdf|format=PDF|title=Country Strategy for India (CAS) 2009–2012|publisher=World Bank|accessdate=2009-06-21}}</ref> Severe disparities exist among states in terms of income, literacy rates, life expectancy and living conditions.<ref>{{Harvnb|Drèze|Sen|1996|pp=45–46}}</ref>

The five-year plans, especially in the pre-liberalisation era, attempted to reduce regional disparities by encouraging industrial development in the interior regions and distributing industries across states, but the results have not been very encouraging since these measures in fact increased inefficiency and hampered effective industrial growth.<ref>{{Harvnb|Panagariya|2008|pp=164–165}}</ref> After liberalisation, the more advanced states have been better placed to benefit from them, with well-developed infrastructure and an educated and skilled workforce, which attract the manufacturing and service sectors. The governments of backward regions are trying to reduce disparities by offering tax holidays and cheap land, and focusing more on sectors like tourism which, although being geographically and historically determined, can become a source of growth and develops faster than other sectors.<ref name="understanding-2">{{cite web|author1=Sachs, D. Jeffrey |author2=Bajpai, Nirupam |author3=Ramiah, Ananthi |title=Understanding Regional Economic Growth in India|year=2002|work=Working paper 88|url=http://www2.cid.harvard.edu/cidwp/088.pdf|archiveurl=https://web.archive.org/web/20070701042205/http://www2.cid.harvard.edu/cidwp/088.pdf|publisher=Harvard University|archivedate=1 July 2007|format=PDF}}</ref><ref name="planning-2">{{cite web|author=Kurian, N.J.|title=Regional disparities in india|url=http://planningcommission.nic.in/reports/sereport/ser/vision2025/regdsprty.doc|publisher=Planning Commission of India|accessdate = 2005-08-06}}</ref> India's income Gini coefficient is 33.9, according to The World Bank, indicating overall income distribution to be more uniform than East Asia, Latin America and Africa that have higher Gini coefficients.<ref name="GINI index"/>

There is a continuing debate on whether India's economic expansion has been pro-poor or anti-poor.<ref name=darwb>Datt & Ravallion (2011), Has India's economic growth become more pro-poor in the wake of economic reforms?, The World Bank Economic Review, 25(2), pp 157-189</ref> Studies suggest that the economic growth has been pro-poor and has reduced [[poverty in India]].<ref name=darwb/><ref>Tripathi, Sabyasachi (December 2013), [http://mpra.ub.uni-muenchen.de/52336/1/MPRA_paper_52336.pdf Has urban economic growth in Post-Reform India been pro-poor between 1993-94 and 2009-10?] Indian Council for Research on International Economic Relations, MPRA Paper No. 52336, Ludwig Maximilians Universität München</ref>

==Insurance==
{{main|Insurance in India}}
India became the 10th largest insurance market in the world in 2013, rising from 15th rank in 2011.<ref>Ernst & Young, [http://www.ey.com/Publication/vwLUAssets/Insurance_industry_-_challenges_reforms_and_realignment/$FILE/EY-Insurance-industry-challenges-reforms-realignment.pdf Insurance industry: Challenges, reforms and realignment] India (2012)</ref><ref>IBEF, Insurance Industry in India, [http://www.ibef.org/industry/insurance-presentation Sectoral Presentation], Ministry of Finance, Government of India (October, 2014)</ref> At a total market size of US$66.4 billion in 2013, it remains small compared to world's major economies, and Indian insurance market accounts for 2% of world's annual insurance business. India's life and non-life insurance industry has been growing at 20% double digit growth rates and this growth is expected to continue through 2021.<ref name=ibefinsure/>

'Life insurance'''
Indian economy retains about 360 million active life insurance policies, the largest in the world.<ref name=ibefinsure/> Of the 52 insurance companies in India, 24 are active in life insurance business. The life insurance industry in the country is projected to increase at double digit compounded annual growth rates through 2019, with targets to reach US$1 trillion annual notional values by 2021.<ref name=ibefinsure>IBEF, [http://www.ibef.org/industry/insurance-sector-india.aspx Insurance Sector in India] April 2014 Industry Report</ref>

'''Other insurance'''
The industry which reported a growth rate of around 10 percent during the period 1996–97 to 2000–01 has, post opening up the sector, reported average annual growth of 15.85% over the period 2001–02 to 2010–11.{{citation needed|date=July 2014}} In addition, the specialised insurers Export Credit Guarantee Corporation and Agriculture Insurance Company (AIC) are offering credit guarantee and crop insurance respectively. AIC, which has initially offering coverage under the National Agriculture Insurance Company (NAIS), has now started providing crop insurance cover on commercial line as well.{{citation needed|date=July 2014}} It has introduced several innovative products such as weather insurance and specific crop related products. The premium underwritten by the non life insurers during 2010–11 was Rs 42,576&nbsp;crore as against Rs 34,620&nbsp;crore in 2009–10. The growth was satisfactory, particularly in the view of the across the broad cuts in the tariff rates. The private insurers underwrote premium of Rs 17,424&nbsp;crore as against rs Rs 13,977&nbsp;crore in 2009–10. The public sector insurers on the other hand, underwrote a premium of Rs 25,151.8 in 2010–11 as against Rs 20,643.5&nbsp;crore in 2009–10, i.e. a growth of 21.8% as against 14.5% in 2009–10.{{citation needed|date=July 2014}}

'''Market penetration'''
The Indian insurance business has in the past remained under developed with low levels of insurance penetration. Post liberalisation sector has succeeded in raising the levels of insurance penetration from 2.3 (life 1.8 and non life 0.7) in 2000 to 5.1 (life 4.4 and non life 0.7) in 2010.{{citation needed|date=July 2014}}

==Security markets==
[[File:Bombay Stock Exchange 3.jpg|thumb|Bombay Stock Exchange]]
The development of Indian security markets began with launch of [[Bombay Stock Exchange]] (BSE), Mumbai in July 1875 and [[Ahmedabad]] Stock exchange in 1894 and 22 other exchange in various cities over the years. In 2014, India's stock exchange market became the 10th largest in the world by market capitalisation, just above those of South Korea and Australia.<ref>[http://www.ft.com/intl/cms/s/0/fa07a946-e1a1-11e3-b7c4-00144feabdc0.html#axzz38le1HY8o ‘Modi Mania’ propels India’s stock market into world’s top 10] The Financial Times (22 May 2014)</ref> India's two major stock exchanges, BSE and [[National Stock Exchange of India]], had a market capitalisation of US$1.71 trillion and US$1.68 trillion respectively as of Feb 2015, according to [[World Federation of Exchanges]].<ref name="bseindia.com"/><ref>[http://www.world-exchanges.org/statistics/monthly-reports WFE] {{wayback|url=http://www.world-exchanges.org/statistics/monthly-reports |date=20140817220823 |df=y }}</ref>

The Initial Public Offering (IPO) market in India has been small compared to NYSE and NASDAQ, raising US$300 million in 2013 and US$1.4 billion in 2012. Ernst and Young states<ref name=eygipo>[http://www.ey.com/Publication/vwLUAssets/EY_-_Global_IPO_Trends_Q4_2013/$FILE/EY-Global-IPO-Trends-Q4-2013.pdf EY Global IPO Trends Global IPO Trends Q4 2013] Ernst & Young (2014)</ref> that the low IPO activity reflects market conditions as well as slow government approval process and complex regulations. Before 2013, Indian companies were not allowed to list their securities internationally without first completing an IPO in India. In 2013, these security laws were reformed and Indian companies can now choose where they want to list first&nbsp;— overseas, domestically, or concurrently.<ref>[http://www.business-standard.com/article/markets/listing-abroad-sans-domestic-ipo-set-to-be-a-reality-soon-113122000712_1.html Listing abroad sans domestic IPO set to be a reality soon] Business Standard (28 July 2013)</ref> Further, security laws have been revised to ease overseas listings of already listed companies, to increase liquidity for private equity and international investors in Indian companies.<ref name=eygipo/>

==See also==
<!--PLEASE MAINTAIN THE SERIES BELOW IN ALPHABETICAL ORDER.-->
{{Portal|India|Business and economics}}
*[[Economic Advisory Council]]
*[[Economic development in India]]

'''Events:'''
*[[Late-2000s recession]]
*[[Oil price increases since 2003]]

'''Lists:'''
*[[List of companies of India]]
*[[List of the largest trading partners of India]]
*[[Income in India]]
*[[Trade unions in India]]
*[[Economic history of India]]
*[[Minerals in India]]
*[[Iron and Steel Industry in India]]

==Notes==
{{Reflist|30em}}

==References==
'''Books'''
{{Refbegin}}
*{{cite book |title= Indian Economy|last1=Datt |first1=Ruddar |last2=Sundharam |first2=K.P.M. |year=2009 |publisher=[[S. Chand Group]] |location=New Delhi |isbn=978-81-219-0298-4 |page=976 |ref=harv}}
*{{cite book|last1=Drèze|first1=John|authorlink1=Jean Drèze|last2=Sen|first2=Amartya|authorlink2=Amartya Sen|title=India: Economic Development and Social Opportunity|publisher=Oxford University Press|year=1996|isbn=978-0-19-564082-3|page=292|ref=harv}}
*{{cite book|last=Kumar |first=Dharma|title=The Cambridge Economic History of India, Volume II : c. 1757–2003|publisher=Orient Longman |location=New Delhi|year=2005|isbn=978-81-250-2710-2|page=1115|ref=harv}}
*{{cite book|author=Nehru, Jawaharlal|authorlink = Jawaharlal Nehru| title=[[The Discovery of India]]|publisher=Penguin Books|year=1946|isbn=0-14-303103-1}}
*{{cite book|last=Panagariya|first=Arvind|authorlink=Arvind Panagariya| title=India: The Emerging Giant|publisher=[[Oxford University Press]]|year=2008|isbn=978-0-19-531503-5|page=514|ref=harv}}
*{{cite book |title=The Cambridge Economic History of India, Volume I : c. 1200&nbsp;– c. 1750| last1=Raychaudhuri|first1=Tapan| last2=Habib| first2=Irfan|authorlink2=Irfan Habib|year=2004| publisher=[[Orient Longman]] |location=New Delhi |isbn=978-81-250-2709-6|page=543|ref=harv}}
*{{cite book|last=Roy|first=Tirthankar|title=The Economic History of India 1857–1947|publisher=Oxford University Press|year=2006|isbn=978-0-19-568430-8|page=385|ref=harv}}

{{Refend}}

'''Papers and reports'''
* Bahl, R., Heredia-Ortiz, E., Martinez-Vazquez, J., & Rider, M. (2005). ''[https://ideas.repec.org/p/ays/ispwps/paper05141.html India: Fiscal Condition of the States, International Experience, and Options for Reform: Volume 1]'' (No. paper05141). International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
{{Refbegin}}
*{{cite web|url=http://harrisschool.uchicago.edu/News/press-releases/IPP%20Economic%20Reform%20in%20India.pdf|format=PDF|publisher=University of Chicago|page=32|title=Economic reforms in India: Task force report|ref={{harvid|Task Force Report|2006}}}}
*{{cite web|url=http://indiabudget.nic.in/es2009-10/chapt2010/chapter.zip|title=Economic Survey 2009–10|publisher=Ministry of Finance, Government of India|page=294|ref={{harvid|Economic Survey|2010}} }}

==Further reading==
'''Books'''
{{Refbegin}}
*{{cite book|last=Alamgir| first=Jalal |title=[[India's Open-Economy Policy]]|publisher=[[Routledge]]|year=2008|isbn=978-0-415-77684-4|ref=harv}}
*{{cite book|last=Bharadwaj|first= Krishna|year=1991|chapter = Regional differentiation in India|editor=Sathyamurthy, T.V|title=Industry & agriculture in India since independence| pages=189–199|publisher=Oxford University Press| isbn=0-19-564394-1|ref=harv}}
{{Refend}}

'''Articles'''
{{Refbegin}}
*{{cite web|title=Growth of India|url=http://www.janderie.live.haverford.edu/wiki/index.php?title=India_growth|accessdate = 2005-08-10}}
*{{cite web|title=Milton Friedman on the Nehru/Mahalanobis Plan|url=http://www.indiapolicy.org/debate/Notes/fried_opinion.html|accessdate = 2005-07-16}}
*{{cite web|title=Infrastructure in India: Requirements and favourable climate for foreign investment|url=http://www.asiatradehub.com/india/intro.asp|accessdate = 2005-08-14}}
*{{Cite journal|author1=Bernardi, Luigi |author2=Fraschini, Angela|title=Tax System And Tax Reforms in India|year=2005|version=Working paper n. 51|url=https://ideas.repec.org/p/uca/ucapdv/45.html}}
*{{Cite journal|author=Centre for Media Studies |title=India Corruption Study 2005: To Improve Governance Volume&nbsp;– I: Key Highlights |publisher=Transparency International India |year=2005 |url=http://www.prajanet.org/newsroom/internal/tii/ICS2k5_Vol1.pdf |format=PDF |accessdate=2009-06-21 |deadurl=yes |archiveurl=https://web.archive.org/web/20090326211644/http://www.prajanet.org/newsroom/internal/tii/ICS2k5_Vol1.pdf |archivedate=26 March 2009 }}
*{{cite web|author=Ghosh, Jayati|title=Bank Nationalisation: The Record|work=Macroscan|url=http://www.macroscan.com/cur/jul05/cur210705Bank_Nationalisation.htm|accessdate = 2005-08-05}}
*{{Cite journal|author1=Gordon, Jim |author2=Gupta, Poonam|title=Understanding India's Services Revolution|year=2003|version=12 November 2003|url=http://www.imf.org/external/np/apd/seminars/2003/newdelhi/gordon.pdf|format=PDF|accessdate=2009-06-21}}
*{{Cite journal|author=Panagariya, Arvind|title=India in the 1980s and 1990s: A Triumph of Reforms|year=2004|url=https://ideas.repec.org/p/wpa/wuwpit/0403005.html}}
*{{Cite journal|author1=Sachs, D. Jeffrey |author2=Bajpai, Nirupam |author3=Ramiah, Ananthi |title=Understanding Regional Economic Growth in India|year=2002|version=Working paper 88|url=http://www2.cid.harvard.edu/cidwp/088.pdf|archiveurl=https://web.archive.org/web/20070701042205/http://www2.cid.harvard.edu/cidwp/088.pdf|archivedate=1 July 2007|format=PDF}}
*{{Cite journal|author=Srinivasan, T.N.|title=Economic Reforms and Global Integration|year=2002|version=17 January 2002|url=http://www.econ.yale.edu/%7Esrinivas/ec_reforms.pdf|format=PDF|accessdate=2009-06-21}}
*{{cite web|author=Kurian, N.J.|title=Regional disparities in india|url=http://planningcommission.nic.in/reports/sereport/ser/vision2025/regdsprty.doc|accessdate = 2005-08-06}}
{{Refend}}
*{{cite web|url=https://www.academia.edu/3347336/India_Inc._and_its_moral_discontents|title=India Inc. and its Moral Discontent|first=Ravinder|last=Kaur|publisher=Economic and Political Weekly|year=2012}}
*{{cite web|url=https://www.academia.edu/12282652/Good_Times_Brought_to_you_by_Brand_Modi |title=Good Times, Brought to you by Brand Modi |first=Ravinder|last=Kaur |year=2015 |deadurl=yes |archiveurl=https://web.archive.org/web/20150518091520/https://www.academia.edu/12282652/Good_Times_Brought_to_you_by_Brand_Modi |archivedate=18 May 2015 }}
{{Refend}}

'''News'''
{{Refbegin}}
*{{cite news|title=India, the Goliath, Falls with a Thud |author=Ravi S Jha |url=http://www.khaleejtimes.com/kt-article-display-1.asp?section=business&xfile=data/business/2008/october/business_october347.xml |deadurl=yes |archiveurl=https://web.archive.org/web/20130509214520/http://www.khaleejtimes.com/kt-article-display-1.asp?section=business&xfile=data/business/2008/october/business_october347.xml |archivedate=9 May 2013 }}
*{{cite news|title=India says 21 of 29 states to launch new tax |date=25 March 2005 |newspaper=Daily Times |url=http://www.dailytimes.com.pk/default.asp?page=story_25-3-2005_pg5_13 |deadurl=yes |archiveurl=https://web.archive.org/20090116065316/http://www.dailytimes.com.pk:80/default.asp?page=story_25-3-2005_pg5_13 |archivedate=16 January 2009 }}
*{{cite news|title=Economic structure |date=6 October 2003 |work=The Economist |url=http://www.economist.com/countries/India/profile.cfm?folder=Profile%2DEconomic%20Structure |deadurl=yes |archiveurl=https://web.archive.org/web/20080406030423/http://www.economist.com:80/countries/india/profile.cfm?folder=Profile%2DEconomic%20Structure |archivedate=6 April 2008 }}a
*{{cite web|title=Regional stock exchanges&nbsp;– Bulldozed by the Big Two|url=http://www.thehindubusinessline.com/businessline/2001/07/20/stories/0420.62&nbsp;billion.htm|accessdate = 2005-08-10}}
*{{cite news|url=http://news.indiamart.com/story/finmin-considers-three-single-brand-retail-fdi-proposals-169557.html|title= FinMin considers three single-brand retail FDI proposals}}

{{Refend}}

==External links==
{{Commons category}}
{{Wikiquote}}
<!--PLEASE ADD SITES RELATING TO THE INDIAN ECONOMY AS A WHOLE. EXTERNAL LINKS PERTAINING TO SPECIFICS SHOULD BE PLACED IN THE CORRESPONDING ARTICLES. YOU CAN ALSO PLACE RESEARCH PAPERS/NEWS ITEMS AT [[Talk:Economy of India/helpful links]]-->
'''Government of India websites'''
*[http://finmin.nic.in/ Ministry of Finance, Government of India]
*[http://commerce.nic.in/ Department of Commerce, Government of India]
*[http://dipp.nic.in/English/default.aspx Department of Industrial Policy & Promotion]
*[http://eaindustry.nic.in/ Office of the Economic Adviser]
*[http://www.indiainbusiness.nic.in/ India in Business]- Official website for Investment and Trade in India
*[http://indiabudget.nic.in/index.asp Union Budget & Economic Survey]
*[http://www.incometaxindia.gov.in/home.asp Income Tax Department of India]
*[https://web.archive.org/web/20110901204310/http://www.cbec.gov.in:80/cae1-english.htm Central Board of Excise and Customs]
*[http://www.rbi.org.in/scripts/Statistics.aspx Reserve Bank of India's database on the Indian economy]

'''Publications and statistics'''
*[http://www.indiaenvironmentportal.org.in/reports-documents/key-indicators-household-consumer-expenditure-india-2011-2012 Key indicators of household consumer expenditure in India 2011–2012]
*[http://wits.worldbank.org/CountryProfile/Country/IND/Year/2012/Summary World Bank India 2012 Trade Summary Statistics]
*[http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:20195738~menuPK:295591~pagePK:141137~piPK:141127~theSitePK:295584,00.html World Bank&nbsp;– India Country Overview]
*[https://web.archive.org/web/20130102174637/http://www.ey.com/Publication/vwLUAssets/Doing_business_in_India_2011/$FILE/Doing_business_in_India_2011.pdf Ernst & Young 2011 Report on Doing Business in India]
*[http://www.imf.org/external/country/IND/index.htm IMF, India]
*[https://www.cia.gov/library/publications/the-world-factbook/geos/in.html CIA&nbsp;– The World Factbook&nbsp;– India]
*[http://www.quandl.com/india Quandl&nbsp;– India Country Overview]
*Tariffs applied by India as provided by ITC's [http://www.macmap.org/QuickSearch/FindTariff/FindTariff.aspx?subsite=open_access&country=699&source=1|ITC Market Access Map], an online database of customs tariffs and market requirements

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