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India Economy The Indian economy, which is the third largest in the world in terms of purchasing power, is going to touch new heights in the coming years. This booming economy of today has passed through many phases before it achieved the current milestone.
History of Indian Economy The history of Indian economy can be broadly divided into three phases: During Indus Valley Civilisation, the Indian economy was very well developed. It had very good trade relations with other parts of the world, which is evident from the coins of various civilisations found at the site of Indus Valley.
Before the advent of the East India Company, each village in India was a self-sufficient entity and was economically independent as all Economic activities for india economic needs were fulfilled within the village.
The arrival of the East India Company in the country caused a huge strain on the Indian economy and there was a two-way depletion of resources. The British would buy raw materials from India at cheaper rates and the finished goods were sold at higher than normal price in Indian markets.
Post Colonial Indian Economy: After India got Independence from colonial rule inthe process of rebuilding the economy started. For this various policies and schemes were formulated. First five-year plan for the development of Indian economy came into implementation in If on one hand agriculture received the immediate attention on the other the industrial sector was developed at a fast pace to provide employment opportunities to the growing population and to keep pace with the developments in the world.
Since then the Indian economy has come a long way. Trade liberalisation, financial liberalisation, tax reforms and opening up to foreign investments were some of the important steps, which helped Indian economy to gain momentum.
The Economic liberalisation introduced by Manmohan Singh inthe then finance minister in the government of P V Narasimha Rao, proved to be the stepping-stone for Indian economic reform movements.
Sectors of Indian Economy In any society, economy is classified into different sectors or components. A group of certain economic activities forms different sectors. The economic activities are the outcome of the production of good and services.
In India, there are mainly three different sectors of the economy - primary sector, secondary sector and tertiary sector. Agriculture - In agriculture production, India ranks second in the world.
In the financial yearfood grain production in the country stood at million tonnes. There are many sub-sectors in industry which generate revenue for this sector such as petroleum, engineering, pharmaceuticals, mining, textile and many more.
Challenges before Indian economy: The rising population is eating into the success of India. According to census, the population of India has crossed one billion and is growing at a rate of 2. Such a vast population puts lot of stress on economic infrastructure of the nation.
Thus India has to control its burgeoning population. As per records of National Planning Commission, 36 crore people were living below the poverty line in India in The increasing population is pressing hard on economic resources as well as job opportunities.
But these are proving to be a drop in an ocean.
It is said that India lies in villages. There is a very stark difference in the pace of rural and urban growth. These challenges can be overcome by the sustained and planned economic reforms.
Maintaining fiscal discipline Orientation of public expenditure towards sectors in which India is faring badly such as health and education. Introduction of reforms in labour laws to generate more employment opportunities for the growing population of India.
Introduction of financial reforms including privatisation of some public sector banks. · ADVERTISEMENTS: Economic activities create economic or financial gain by producing goods or services.
Economic consideration is paramount in these activities because human beings want to satisfy their biological needs like food, shelter etc. Economic activities are undertaken with an economic motive. Non-economic activities, urbanagricultureinitiative.com · Economic History India is a very old culture, with a history that stretches back to a time before the rise of Rome in the west.
The area enjoyed a successful agricultural, shipping, and intellectual based urbanagricultureinitiative.com Economic liberalization (or economic liberalisation) is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities; the doctrine is associated with classical urbanagricultureinitiative.com, liberalization in short is "the removal of controls" in order to encourage economic development.
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