Question

What factors have contributed to Indias socio-economic progress?

Answer 1

The economic development in India followed socialist-inspired politicians for most of its independent history, including state-ownership of many sectors; India's per capita income increased at only around 1% annualised rate in the three decades after its independence.[1] Since the mid-1980s, India has slowly opened up its markets through economic liberalisation. After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy.[1]

Answer 2

India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita incomesand a reduction in absolute poverty. Per capita incomes (measured in US $) have doubled in 12 years

But India has one third of all the people in the world living below the official global poverty line. It has more poor people than the whole of sub-Saharan Africa

Per capita income is $1,270, placing India just inside the Middle Income Country category

India's per capita income is 1/20th that of the UK

Life expectancy at birth is 65 years and 44% of children under 5 are malnourished. The literacy rate for the population aged 15 years and above is only 63% compared to a 71% figure for lower middle income countries.

Despite a strong attempt to become an open economy, exports of goods and services from India account for only 15% of GDP although this will rise further in the years ahead

India runs persistent trade and fiscal deficits and has suffered from high inflation in recent years

India's growth rate has slowed and high inflation is a constraint on competitiveness and growth.

Investments by Indian businessmen abroad have overtaken foreign direct investment for the first time – reflecting a lack of confidence among Indian entrepreneurs about their home economy