India Economy- Overview of Indian Market

The economy of India is now the twelfth largest financial system in the world according to the market exchange rates and the fourth largest through purchasing power parity (PPP) basis. But now in current times, India is under one of the fastest growing economic country in the world. Due to the involvement of the industries and the rigid environment, the economy is moving towards continuous improvement. Moreover, highly capable, expert and English-speaking human sources have formed a backbone for India. With the help of increasing purchasing power, the Indian market has changed into a vibrant, rapidly growing consumer market. India also exports and imports large market of consumer goods and advanced technology to renew its manufacturing power on the other base.

But, in the Indian history, India was largely divided into three parts: Pre-Colonial, Colonial and Post Colonial. Under the phase of pre colonial, the economic history of India as Indus Valley Civilization has been mentioned. During this civilization time India was very well developed and also had the good relationship with other parts of world.

Then, after the arrival of colonization phase, East India Company in India cleaned out the Indian economy. This is because the British purchased the raw materials from India in cheaper rates and sold the furnished goods on higher rates in Indian market only. During this stage of time India’s share of world income turned down from 22.3% in 1700 AD to 3.8% in 1952. In the final phase of post colonial, India got freedom from colonial rule in 1947 and the process of reallocating the economy been started. India pays large attention on agriculture, industrial sector development to provide large employment opportunities to the growing population.

But to develop the current status and to accomplish the target GDP of 10% for 2006-07 financial years, Indian economy has to conquer many challenges like population explosion, poverty, unemployment, rural urban divide and so on. Not this, in 2009, Indian economy has faced some other challenges also like inflation under control, diving growth equitably, investment plans, dealing with global financial uncertainty etc.

However now at present, India’s economy has grown up by more than 9%, following 3 months running and has shown a decade of 7%+ growth. This result in 10% poverty reduced with 60% of India’s 1.1 billion populations. Moreover the growth rate of service area was 11.18% in 2007 but now it grew up to 10.63% with 29% of GDP