GPSC Class 1-2 Exam Study Material Part – 11 – Economy of India
The economy of India is the sixth-largest in the world measured by nominal GDP and the third-largest by purchasing power parity (PPP). The country is classified as a newly industrialised country, and one of the G-20 major economies, with an average growth rate of approximately 7% over the last two decades. Maharashtra is the wealthiest Indian state with an annual nominal GDP of US$330 billion, roughly equivalent to those of Venezuela and the United Arab Emirates, and accounts for 13.4% of India’s GDP followed by the states of Tamil Nadu (US$170 billion) and Uttar Pradesh (US$150 billion).India’s economy became the world’s fastest growing major economy in the last quarter of 2014, surpassing the People’s Republic of China.
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.The Indian economy has the potential to become the world’s 3rd-largest economy by the next decade, and one of the two largest economies by mid-century. 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. 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.Growth is expected to decline slightly to 7.1% in the 2016-17 fiscal year.According to the International Monetary Fund (IMF), India’s growth is expected to rebound to 7.2 per cent in the 2017-18 fiscal and 7.7 per cent in 2018-19.