INDIAN ECONOMY

ECONOMY OF INDIA

The Economy of India is the seventh-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP).[32] The country is classified as a newly industrialised country, one of the G-20 major economies, a member of BRICS and a 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 major economy from the last quarter of 2014, replacing the People's Republic of China.[33]

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.[34] The Indian economy has the potential to become the world's 3rd-largest economy by the next decade, and one of the largest economies by mid-century.[35][36][37] 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.[38] 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.[39]

India has the one of fastest growing service sectors in the world with annual growth rate of above 9% since 2001, which contributed to 57% of GDP in 2012-13.[40] India has become a major exporter of IT services, 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.[41] The IT industry continues to be the largest private sector employer in India.[42][43] India is also the fourth largest start-up hub in the world with over 3,100 technology start-ups in 2014-15[44] 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 ranks second worldwide in farm output.[45] The Industry sector has held a constant share of its economic contribution (26% of GDP in 2013-14).[46] 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.[47] India has $600 billion worth of retail market in 2015 and one of world's fastest growing E-Commerce markets.[48][49]

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 11th & 12 largest in the world respectively according to the World Federation of Exchanges.[50] 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.[51]

India is a member of the Commonwealth of Nations,[52] 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 BRICS Bank.