When calculated from the view of purchasing power parity (PPP), the economy of India stands fourth in the world.
However, when measured in terms of U.S.D. exchange rate, India takes the back seat as the tenth largest country.
India has also been declared the second fastest growing economy in the whole world according to a recent survey. It enjoys a GDP growth rate of 9.2%.
The economy weakness of India is however quite clear. This is mainly because India has a very huge population. According to the World Bank criterion, India is considered a weak economy with a per capita income of 3400 $ at PPP.
Indian economy is diverse in nature. This is owing to its vast geographical territory and population. Agriculture gives rise to two-thirds of India’s work force. The service sector is now growing towards an important destination in the Indian economy.
Technology and globalization have revolutionized the Indian economy in recent years. Educated Indians who can speak English are getting absorbed in outsourcing operations for global companies. These companies are harnessing technical talent and customer service operators for their operations abroad.
Unemployment among the youth is now a thing of the past due to the advent of the digital age. This has also opened new avenues of growth for our country in fields like telecommunication, manufacturing, biotechnology, aviation, pharmaceutical and shipbuilding.
To sum up, India is a socialist democracy. The government exercises control over private enterprise while encouraging foreign trade. India is now deliberately marching towards an open economy by opening its doors to global markets. This is a dynamic attempt to grow economically and meet the challenges of a huge and growing population, poverty, illiteracy, ignorance and social inequality.
Business in India
There is today no dearth of business opportunities in India with its economy soaring to the fourth largest position in the world in terms of purchasing power.
The Indian government has implemented a number of policies for the aid of entrepreneurs in starting a business in India. This together with the strong fundamentals of Indian economy earned the 43rd rank for India in the world economic forum’s GCI position for the years 2006 and 2007.
India has emerged as a highly appropriate destination for foreign enterprise. This is primarily due to its intellectual middle class which is emerging gradually, a low wages competitive labour force, rich natural resources, vast geographical terrain, higher disposable incomes and progressive as well as friendly business policies which are also investment friendly.
Business etiquette in India has undergone a big transformation with the advent of globalization. Industrial leaders of India are seen to be introducing vast changes in business policies and practices and their implementation to attract international business into India.
In a nutshell, India is making a progressive journey from privatization to liberalization where business is concerned.
Foreign trade policies in India are committed to attract FDI. The government is making every reasonable effort to sustain and improve the eight percent growth rate.
Indian policy makers and industrialists are employed in offering a healthy and robust economic environment for private and public enterprises in order to remain rooted and grow within the country.