For those who don’t know, India is the second most populated country in the world. Aside from that, it’s also one of the fastest-growing and biggest economies in the world.
The economic growth together with different factors, such as proficiency in a global language and a huge pool of youth population, is expected to push India into becoming a developed country.
The economic success of India in the previous years has helped to guarantee that South Asia is the fastest-growing region in the world.
So, if you want to dive deeper into the raging economy of India, here are several things you should know.
Historical Development Of The Economy In India
India created a centrally-planned economy after gaining independence from Britain in 1947. With this type of economy, the government makes most of the economic decisions when it comes to the distribution and manufacturing of products.
India’s government focused on developing its heavy industry sector. However, this focus was eventually considered not practical.
India started to loosen its economic restrictions in 1991. The increased level of liberalization also resulted in growth in the private sector of the country.
Today, experts consider India a diverse economy. The public and private sectors work together and the country leverages international trade.
Residents in India can start their own private businesses and choose their own jobs. Citizens started businesses that focus on globe valve vs ball valve manufacturing, and more.
Unfortunately, in particular areas of the economy, the government maintains a monopoly. This includes banking, power, defense, and more.
The economy of India has exponentially grown – from $288 billion in 1992 to $2.66 trillion in 2020.
The Economy In India Has Grown Exponentially
In 1999, the gross domestic product of India was only around $459 billion. This is according to the World Bank.
However, the country generated the equivalent of $2.7 trillion in 2018. That is a growth of around 6 times in less than 20 years.
The Annual GDP Of India Will Probably Surpass The UK
The GDP of India in 2017 was $2.7 trillion, according to the World Bank. Unfortunately, it was just short of the GDP of France, which was $2.78 trillion.
This made India the country with the 7th biggest GDP. However, India might not stay behind France for long.
According to experts, they predict that India will generate a bigger GDP compared to both the UK and France. If this happens, it will make India the 5th biggest economy in the world.
So, if you want to become a high-quality medical plastics manufacturer, you might want to start your business in India.
The retail sector in the country is big. However, it isn’t simply traditional consumer retail, electronics, or clothing that is booming. Agricultural retail is also improving.
This is vital in a country that is conscious of inflation. Unfortunately, the problem of agricultural waste has come to the forefront in recent years.
It’s estimated that from 2018 to 2021, more than 400,000 tons of rice and wheat were wasted because of transportation and storage problems.
Keep in mind that 400,000 tons are enough to feed more than 80 million people in India. Reports suggest there’s little storage for agricultural products in India.
Professionals think that the answer to the huge waste problem is a combination of infrastructure, technology, and government policy.
Unless this issue is resolved, you might want to avoid the agricultural industry. You might find a huge success if you sell high-quality, reliable, and rare car parts instead.
Business Services And IT Outsourcing
For more than 6 decades, the service industry in the country has improved from a fraction of the GDP to more than 55% between 2019 and 2020.
Since India has a high population of educated, English-speaking, and skilled people, it has become an excellent country for doing business.
Some of the leading service industries in India include software, IT, and telecommunications. The workers are hired by both international and domestic companies.
This includes Microsoft, Google, Meta, Yahoo, Texas Instruments, Intel, and much more.
In India, Chemicals are big. The petrochemical industry experienced rapid growth in the 1980s and 1990s.
Aside from chemicals, the country also produces a huge supply of the world’s pharmaceuticals as well as billions of dollars’ worth of forged steel, machinery, tractors, tools, motorcycles, cars, glass coke bottles in bulk, and more.
India mines a huge number of common minerals and gems as well. This includes gold, bauxite, iron ore, marble, limestone, uranium, and asbestos.
For instance, the country mined 729 million tons of coal from 2019 to 2020.
In the 21st century, India has become a rising economic power. Between the years 2011 and 2015, over 91 million people in the country got out of severe poverty.
This is due to the rapid growth of India’s economy that has boosted the overall standards of living in India.
This fiscal year, growth in the country is expected to be 7.2%. This is according to the World Bank. India is one of the rapidly growing countries among major emerging economies currently