THE ECONOMY OF INDIA UPSC GENERAL STUDIES NOTES




The economy of India is a developing mixed economy. The economy of India is the world's sixth-largest economy by nominal GDP and the third-largest economy by purchasing power parity (PPP). The country
ranks 139th in per capita GDP (nominal) with $2,134 and 122th in per capita GDP
purchasing power parity (PPP) with $7,783 as of 2018. After the 1991 economic liberalisation, India achieved 6 to 7% average GDP growth annually. Since 2014 with the exception of 2017, India's economy has been the world's fastest growing economy, surpassing the China. India has one of the fastest growing service sectors in the world with an annual growth rate above 9% since 2001, India has classified and tracked its economy and GDP in three sectors: 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, healthcare, banking and insurance, and many other economic activities. service sector which contributed to 57% of GDP in 2012–13. India has become a major exporter of IT services, Business Process Outsourcing (BPO) services, and software services with $154 billion revenue in FY 2017. The agricultural sector is the largest employer in India's economy but contributes to 17%  share of  GDP in 2013–14. The  manufacturing industry sector contributes 26% share of GDP in 2013–14. India had $600 billion worth of retail market in 2015 and one of world's fastest growing e-commerce markets.