Economy, asked by omnamdeo22gmailcom, 6 months ago

India is emerging as an industrial country in world economy?Explain.(answer in 50 to 100 words)​

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Answered by raashvi0811
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The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings and investment rates, and is increasing integration into the global economy.[10] The economy slowed in 2017, due to shocks of "demonetisation" in 2016 and introduction of Goods and Services Tax in 2017.[10] Nearly 60% of India's GDP is driven by domestic private consumption[58] and continues to remain the world's sixth-largest consumer market.[59] Apart from private consumption, India's GDP is also fueled by government spending, investment, and exports.[60] In 2018, India was the world's tenth-largest importer and the nineteenth-largest exporter.[61] India has been a member of World Trade Organization since 1 January 1995.[62] It ranks 63rd on Ease of doing business index and 68th on Global Competitiveness Report.[63] With 520-million-workers, the Indian labour force is the world's second-largest as of 2019. India has one of the world's highest number of billionaires and extreme income inequality.[64][65] Since India has a vast informal economy, barely 2% of Indians pay income taxes.[66] During the 2008 global financial crisis the economy faced mild slowdown, India undertook stimulus measures (both fiscal and monetary) to boost growth and generate demand; in subsequent years economic growth revived.[67] According to 2017 PricewaterhouseCoopers (PwC) report, India's GDP at purchasing power parity could overtake that of the United States by 2050.[68] According to World Bank, to achieve sustainable economic development India must focus on public sector reform, infrastructure, agricultural and rural development, removal of land and labour regulations, financial inclusion, spur private investment and exports, education and public health.[69]

In 2019, India's ten largest trading partners were USA, China, UAE, Saudi Arabia, Hong Kong, Iraq, Singapore, Germany, South Korea and Switzerland.[70] In 2018–19, the foreign direct investment (FDI) in India was $64.4 billion with service sector, computer, and telecom industry remains leading sectors for FDI inflows.[71] India has free trade agreements with several nations, including ASEAN, SAFTA, Mercosur, South Korea, Japan and few others which are in effect or under negotiating stage.[72][73] The service sector makes up 55.6% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs a majority of the labor force.[74] The Bombay Stock Exchange and National Stock Exchange are one of the world's largest stock exchanges by market capitalization.[75] India is the world's sixth-largest manufacturer, representing 3% of global manufacturing output and employs over 57 million people.[76][77] Nearly 66% of India's population is rural whose primary source of livelihood is agriculture,[78] and contributes about 50% of India's GDP.[79] It has the world's fifth-largest foreign-exchange reserves worth ₹38,832.21 billion (US$540 billion).[80][45] India has a high national debt with 68% of GDP, while its fiscal deficit remained at 3.4% of GDP.[37][38] However, as per 2019 CAG report, the actual fiscal deficit is 5.85% of GDP.[81] India's government-owned banks faced mounting bad debt, resulting in low credit growth,[10] simultaneously the NBFC sector has been engulfed in a liquidity crisis.[82] India faces high unemployment, rising income inequality, and major slump in aggregate demand.[83][84] In recent years, independent economists and financial institutions have accused the government of fudging various economic data, especially GDP growth.[85][86]

India ranks second globally in food and agricultural production, while agricultural exports were $38.5 billion.

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