which sector of India's economy is most dependent on?
Answers
Answer:
India has the world's fourth-largest natural resources, with the mining sector contributing 11% of the country's industrial GDP and 2.5% of total GDP. It is also the world's second-largest coal producer, the second-largest cement producer, the second-largest steel producer, and the third-largest electricity producer.
Explanation:
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, increasing globalisation in India and integration into the global economy.[10] The economy slowed in 2017, due to shocks of "demonetisation" in 2016 and the introduction of the Goods and Services Tax in 2017.[10] Nearly 60% of India's GDP is driven by domestic private consumption[54] and continues to remain the world's sixth-largest consumer market.[55] Apart from private consumption, India's GDP is also fueled by government spending, investment, and exports.[56] In 2019, India was the world's ninth-largest importer and the twelfth-largest exporter.[57] India has been a member of the World Trade Organization since 1 January 1995.[58] It ranks 63rd on the Ease of doing business index and 68th on the Global Competitiveness Report.[59] With 500 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.[60][61] Since India has a vast informal economy, barely 2% of Indians pay income taxes.[62] During the 2008 global financial crisis the economy faced a mild slowdown, India undertook stimulus measures (both fiscal and monetary) to boost growth and generate demand; in subsequent years economic growth revived.[63] According to the 2017 PricewaterhouseCoopers (PwC) report, India's GDP at purchasing power parity could overtake that of the United States by 2050.[64] 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.[65]
In 2020, India's ten largest trading partners were the United States, China, UAE, Saudi Arabia, Switzerland, Germany, Hong Kong, Indonesia, South Korea, and Malaysia.[66] In 2019–20, the foreign direct investment (FDI) in India was $74.4 billion with the service sector, computer, and telecom industry remains leading sectors for FDI inflows.[67] India has free trade agreements with several nations, including ASEAN, SAFTA, Mercosur, South Korea, Japan, and several others which are in effect or under negotiating stage.[68][69] The service sector makes up 50% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs a majority of the labor force.[70] The Bombay Stock Exchange and National Stock Exchange are some of the world's largest stock exchanges by market capitalization.[71] India is the world's sixth-largest manufacturer, representing 3% of global manufacturing output, and employs over 57 million people.[72][73] Nearly 66% of India's population is rural,[74] and contributes about 50% of India's GDP.[75] It has the world's fourth-largest foreign-exchange reserves worth $585 billion.[41] India has a high public debt with 89% of GDP, while its fiscal deficit stood at 9.5% of GDP.[34][35] 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.[76] India faces moderate unemployment, rising income inequality, and a drop in aggregate demand.[77][78] India's gross domestic savings rate stood at 30.1% of GDP in FY 2019.[79] In recent years, independent economists and financial institutions have accused the government of fudging various economic data, especially GDP growth.[80][81]