Economic development is the progression by which up-and-coming economies become advanced economies. In other words,it is the course of action by which countries with low living standards become nations with elevated living standards. Economic growth also refers to the course of action by which the general health, well-being, and scholastic level the general population improves.
There is no unanimously acknowledged characterization of what a developing country is; neither is there one of what constitutes the route of economic growth. Developing countries are usually pigeonholed by a per capita income principle, and economic growth is usually thought to occur as per capita incomes rise. A country’s per capita income is the best available measure of the value of the goods and services available, per person, to the society per year. Although there are a number of exertions in measurement of both the intensity of per capita income and its rate of expansion, these two indicators are best obtainable to provide estimates of the level of economic welfare within a country and of its economic augmentation.
The Indian economy was suffering at the verge of the country’s independence. Being a colony, she was fulfilling the development needs not of herself, but of a foreign land. The state, that should have been accountable for breakthroughs in agriculture and industry, refused to play even a minor role in this regard. On the other hand, during the half century before India’s independence, the world was considering accelerated growth and extension in cultivation and commerce – on the command of an active responsibility being played by the states.
British rulers never made any noteworthy changes for the profit of the communal sector, and this fraught the productive aptitude of the economy. The need for delivering growth and development was in huge demand in front of the political leadership – as the country was riding on the promises and vibes of national fervour. Many significant and tactical decisions were engaged by 1956, which are still determining India’s economic voyage.
Top Performing Sectors of Indian Economy
The espousal of the new-fangled Economic Policy in 1991 saw a milestone swing in the Indian economy, as it ended the mixed economy model and license raj system – and opened the Indian economy to the world. A synopsis of the top performing sectors of the Indian economy is given below –
1. Agricultural Sector:
One of the most imperative sectors of the Indian economy remains
Agriculture. Its share in the GDP of the country has declined and is currently
at 14%. However, more than 50% of the total population of the country is still
dependent on agriculture. Keeping this in mind, the Union Budget 2017 – 18 gave
high priority to the agricultural sector and aimed to double farmers’ incomes
• Government subsidies to agriculture are at an all – time high.
• Further, cropping patterns have shifted in favour of cash crops such as sugarcane and rubber.
• Introduction of cooperative farming like – e – choupal etc.
• Many export sectors have been opened for agricultural goods.
• Food processing is up-and-coming as a ‘daybreak Industry’
2. Industry Sector:
Another significant fraction of the Indian economy is the
Industry sector. Changes such as the conclusion of the ‘Permit Raj’ and opportunity
of the economy were welcomed in the country with immense fervour and sanguinity.
As a consequence of these changes, the industrial prospective of the economy
has amplified since 1991.
• propagation of industries, from conventional iron and steel to jute and automobiles.
• self-sufficiency in production, promotion and allocation.
• abridged red – tapism.
• Encouragement to classified investments, both domestic as well as FDI.
• Transfer of technology and benefits of research and development to the advantage of the economy.
• Arrival of investment models such as joint ventures, public-private partnerships, MNCs.
• Private companies got a prospect to come into new sectors, which were earlier underneath government monopoly.
3. Services Sector:
The segment that benefited most from the New Economic Policy was
the services sector. Banking, Finance, Business Process Outsourcing – and most
importantly Information Technology services – have seen double – digit
• Indian IT experts such as Infosys, WIPRO and TCS have made their spot on the international dais.
• 60 % of the GDP input comes from the services sector.
• Opening of transportation, tourism and medical sectors have led to the growth of service sector competencies.
• RBI has transitioned from being a regulator to a facilitator.
5. Manufacturing Sector:
The manufacturing sector is the second largest provider to India’s GDP after the Services sector.
However, if India aims to hoist its share of manufacturing in GDP to around 25%, the industry will have to extensively pace up its research and growth expenditure. The quantum of cost adding has to be greater than before at all levels and the government needs to proffer striking compensation to stimulate people to join the industrialized sector.
Recent Developments in the Economy of India
Besides these developments and reforms, it is imperative to bear in mind
that in order to tap the highest potential of the economy and ensure good
governance, an optimal level of synergy is required between the central and
state government. This will not only add potency to our accommodating centralized
structure but will also reinforce India’s economy. Initiatives such as –
• Goods and Services Tax (GST)
• Insolvency and Bankruptcy Code (IBC)
• Startup India
• Digital India
These, among others, have helped the Indian economy jump 65 ranks (in the last four years) in the World Bank’s Ease of Doing Business Report.
These processes paved India’s status as one of the few vivid spots in an otherwise dour global economy. India is among the fastest growing major economies, underpinned by a stable macro – economy with declining inflation and improving fiscal and external balances. Not only that, it was also one of the few economies enacting major ‘structural reforms’, that have positioned India as a competitive player in the international market.