Strengths of Indian Economy
Indian economy is a typical example of mixed economy. This means both private and public sectors co-exist and function smoothly. On one side, some of the fundamental and heavy industrial units are being operated under the public sector,while, due to the liberalization of the economy, the private sector has gained importance. This makes it a perfect model for public – private partnership.
Agriculture being the maximum pursued occupation in India, it plays an important role in its economy as well. Around 60% of the people in India depend upon agriculture for their livelihood. In fact, about 17% of our GDP today is contributed by the agricultural sector. Green revolution, ever green revolution and inventions in bio technology have made agriculture self sufficient and also surplus production. The export of agricultural products such as fruits, vegetables, spices, vegetable oils, tobacco, animal skin, etc. also add to forex earining through international trading.
India has emerged as vibrant economy sustaining stable GDP growth rate even in the midst of global downtrend. This has attracted significant foreign capital through FDI and FII.India has a high potential for prospective growth. This also makes it an emerging market for the world.
Emerging as a top economic giant among the world economy, India bags the seventh position in terms of nominal Gross Domestic Product (GDP) and third in terms of Purchasing Power Parity (PPP). As a result of rapid economic growth Indian economy has a place among the G20 countries.
India’s economy is well known for high and sustained growth. It has emerged as the world’s fastest growing economy in the year 2016 -17 with the growth rate of 7.1% in GDP next to People’s Republic of China.
The service sector, contributes a lion’s share of the GDP in India. There has been a high rise growth in the technical sectors like Information Technology, BPO etc. These sectors have contributed to the growth of the economy. These emerging service sectors have helped the country go global and helped in spreading its branches around the world.
With the faster growth rate in the economy the standard of living has improved a lot.
This in turn has resulted in rapid increase in domestic consumption in the country. The standard of living has considerably improved and life style has changed.
Urbanization is a key ingredient of the growth of any economy. There has been a rapid growth of urban areas in India after independence. Improved connectivity in transport and communication, education and health have speeded up the pace of urbanization.
The Indian economy has been projected and considered as one of the most stable economies of the world. The current year’s Economic survey represents the Indian economy to be a “heaven of macroeconomic stability, resilience and optimism. According to the Economic Survey for the year 2014-15, 8%-plus GDP growth rate has been predicted, with actual growth turning out to be a little less (7.6%). This is a clear indication of a stable macroeconomic growth.
The human capital of India is young. This means that India is a pride owner of the maximum percentage of youth. The young population is not only motivated but skilled and trained enough to maximize the growth. Thus human capital plays a key role in maximizing the growth prospects in the country. Also, this has invited foreign investments to the country and outsourcing opportunities too.