 | |
| Currency | Indian rupee (INR, ₹) |
|---|---|
| 1 April – 31 March | |
Trade organisations | WTO,WCO,SAFTA,BIMSTEC,WFTU,BRICS,G-20,BIS,AIIB,ADB and others |
Country group | |
| Statistics | |
| Population |  1,428,627,663 (1st; 2024 est.)[5] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
GDP by component |
|
| |
Population belowpoverty line | |
| |
| |
 38 out of 100 points (2024)[16] (rank 96th) | |
Labour force |
|
Labour force by occupation |
|
| Unemployment |
|
| 70.7% of GDP (2023)[24] | |
Grosscapital formation |  31% of GDP (2023)[25] |
| Gross savings | 31.781% of GDP (2023)[26] |
| 10-year bond 7.190% (Jan 2023)[27][28] | |
Main industries |
|
| External | |
| Exports | $824.9 billion (FY 2024–25)[31] |
Export goods |
|
Main export partners |
|
| Imports | $915.19 billion (FY 2024–25)[34] |
Import goods |
|
Main import partners |
|
FDI stock | |
Grossexternal debt |
|
| –$379.7 billion (June 2023)[39] | |
| Public finances | |
| $694.23 billion[b][40] (4th) (as of 05 September 2025) | |
| –6.4% of GDP (2022–23)[41] | |
| Revenues | |
| Expenses | |
| Economic aid |
|
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy ofIndia is adevelopingmixed economy with a notable public sector in strategic sectors.[48] It is the world's fourth-largest economy bynominal GDP and the third-largest bypurchasing power parity (PPP); on aper capita income basis,India ranked136th by GDP (nominal) and119th by GDP (PPP).[49] Fromindependence in 1947 until 1991, successive governments followed theSoviet model and promotedprotectionist economic policies, with extensiveSovietization,state intervention,demand-side economics, natural resources, bureaucrat-driven enterprises andeconomic regulation. This was a form of theLicence Raj.[50][51][52] The end of theCold War and an acutebalance of payments crisis in 1991 led to the adoption of a broad economic liberalisation in India andindicative planning.[53][54] India has about 1,900 public sector companies,[55] with the Indian state having complete control and ownership of railways. While the Indian government retains ownership through theNational Highways Authority of India (NHAI), a large share of new national highway projects are now built and maintained underPublic–private partnership (PPP) models rather than being fully government‑funded.[56][57] The government plays a major role in sectors likeSupercomputing, space and shipping but private participation is growing, especially in space, telecom, and satellite communications.[58]
Nearly 70% of India's GDP is driven by domestic consumption;[59] the country remains the world'sthird-largest consumer market.[60] Aside from private consumption, India's GDP is also fueled by government spending, investments, and exports.[61] As of 2025, India is the world's7th-largest importer and the10th-largest exporter.[62] India is often described as the ‘pharmacy of the world’, supplying roughly 20% of the global demand for generic medicines and exporting pharmaceuticals to over 200 countries in 2023–24, with around 70% of exports to highly regulated markets like North America and Europe.[63][64] India has been a member of theWorld Trade Organization since 1 January 1995.[65] It ranks 40th on the Global Competitiveness Index.[66][67] As of 2025, India ranks third in the world in total number of billionaires.[68] According to theWorld Bank, India's Gini index fell to 25.5 in 2022‑23, making it the fourth-most equal country globally, suggesting significant progress in income equality.[69][70][71][72] Economists and social scientists often consider India awelfare state.[73][74][75][76] India's overallsocial welfare spending stood at 8.6% of GDP in 2021-22.[77][78] With 607 million workers, the Indian labour force is theworld's second-largest.[79] India is among the countries with the longest working hours globally.[80] Although India's labour productivity is lower than advanced economies, it aligns with levels observed in many emerging Asian countries like China.[81]
In 2021–22, theforeign direct investment (FDI) in India was $82 billion. The leading sectors for FDI inflows were the Finance, Banking, Insurance and R&D.[82] India has establishedfree trade agreements and economic‑partnership with several countries and regional blocs, includingASEAN,SAFTA, Japan, South Korea, Australia, and the United Arab Emirates, while also concluding agreements withEFTA (Iceland, Liechtenstein, Norway, Switzerland) and the United Kingdom. India maintains Comprehensive Economic Cooperation Agreements (CECA/CEPA) with Singapore, Malaysia, Mauritius, and Japan, and continues to negotiate or review trade agreements with partners such as Chile, New Zealand, theEuropean Union, and theEurasian Economic Union. Additionally, India has bilateral investment and tax treaties with countries including Bangladesh, Uzbekistan, Kyrgyzstan, Belarus, and Trinidad & Tobago.[83]
As of 2025, the service sector accounts for around 55% of GDP.[84] India has two of the world's tenLargest stock exchanges (both bytrade volume andmarket capitalisation).[85] According toUnited Nations Industrial Development Organization (UNIDO) India is the world'sfifth-largest manufacturer, representing 3.2% of global manufacturing output.[86] Nearly 63% of India's population is rural,[86] and contributes about 46% of India's GDP.[87][88] India's unemployment rate remained at 3.2% in 2023–24.[89] The labour force participation rate reached 60.1% overall, with a worker–population ratio of 58.2%.[89] India's gross domestic savings rate stood at 29.3% of GDP in 2022.[90]
For a continuous duration of nearly 1700 years from the year 1 CE, India was the world's largest economy, constituting 35 to 40% of the world GDP.[91] The combination ofprotectionist,import-substitution,Fabian socialism, andsocial democratic-inspired policies governed India for sometime after the end ofBritish rule. The economy was then characterised asDirigism,[51][52] It had extensive regulation,protectionism,public ownership of large monopolies, pervasive corruption and slow growth.[53][54][92] Since 1991,continuing economic liberalisation has moved the country towards amarket-based economy.[53][54] By 2008, India had established itself as one of the world's faster-growing economies.
The citizens of theIndus Valley civilisation, a permanent settlement that flourished between 2800 BCE and 1800 BCE, practised agriculture, domesticated animals, used uniform weights and measures, made tools and weapons, and traded with other cities. Evidence of well-planned streets, a drainage system, andwater supply reveals their knowledge ofurban planning, which included the first-known urbansanitation systems and the existence of a form of municipal government.[93]
Maritime trade was carried out extensively betweensouthern regions of India andSoutheast Asia and West Asia from early times until around the fourteenth century CE. Both theMalabar andCoromandel Coasts were the sites of important trading centres from as early as the first century BCE, used for import and export as well as transit points between theMediterranean region and southeast Asia.[94] Over time, traders organised themselves into associations which received state patronage. This state patronage for overseas trade came to an end by the thirteenth century CE, when it was largely taken over by the local Parsi, Jewish, Syrian Christian, and Muslim communities, initially on the Malabar and subsequently on the Coromandel coast.[95]
Other scholars suggest trading from India to West Asia and Eastern Europe was active between the 14th and 18th centuries.[96][97][98] During this period, Indian traders settled inSurakhani, a suburb of greaterBaku, Azerbaijan. These traders built aHindu temple, which suggests commerce was active and prosperous for Indians by the 17th century.[99][100][101][102]
Further north, theSaurashtra andBengal coasts played an important role in maritime trade, and theGangetic plains and theIndus valley housed several centres of river-borne commerce. Most overland trade was carried out via theKhyber Pass connecting thePunjab region with Afghanistan and onward to the Middle East and Central Asia.[103] Although many kingdoms and rulers issued coins,barter was prevalent. Villages paid a portion of their agricultural produce as revenue to the rulers, while their craftsmen received a part of the crops at harvest time for their services.[104]
The Indian economy was the largest and most prosperous throughout world history and would continue to be under theMughal Empire, up until the 18th century.[105] Sean Harkin estimates that China and India may have accounted for 60 to 70 percent of world GDP in the 17th century. The Mughal economy functioned on an elaborate system ofcoined currency, land revenue and trade. Gold, silver and copper coins were issued by the royalmints which functioned on the basis offree coinage.[106] The political stability and uniform revenue policy resulting from a centralized administration under the Mughals, coupled with a well-developed internal trade network, ensured that India–before the arrival of the British–was to a large extent economically unified, despite having a traditional agrarian economy characterised by a predominance ofsubsistence agriculture.[107] Agricultural production increased under Mughalagrarian reforms,[105] with Indian agriculture being advanced compared to Europe at the time, such as the widespread use of theseed drill among Indian peasants before its adoption in European agriculture,[108] and possibly higher per-capita agricultural output and standards of consumption than 17th century Europe.[109]
The Mughal Empire had a thriving industrial manufacturing economy, with India producing about 25% of the world's industrial output up until 1750,[110] making it the most important manufacturing centre ininternational trade.[111] Manufactured goods andcash crops from the Mughal Empire were sold throughout the world. Key industries included textiles,shipbuilding, and steel, and processed exports included cotton textiles,yarns,thread, silk,jute products,metalware, and foods such as sugar, oils and butter.[105] Cities and towns boomed under the Mughal Empire, which had a relatively high degree of urbanization for its time, with 15% of its population living in urban centres, higher than the percentage of the urban population in contemporary Europe at the time and higher than that ofBritish India in the 19th century.[112]
Inearly modern Europe, there was significant demand for products from Mughal India, particularly cotton textiles, as well as goods such as spices, peppers,indigo, silks, andsaltpeter (for use inmunitions).[105]European fashion, for example, became increasingly dependent on Mughal Indian textiles and silks. From the late 17th century to the early 18th century, Mughal India accounted for 95% ofBritish imports from Asia, and theBengal Subah province alone accounted for 40% ofDutch imports from Asia.[113] In contrast, there was very little demand for European goods in Mughal India, which was largely self-sufficient.[105] Indian goods, especially those from Bengal, were also exported in large quantities to other Asian markets, such asIndonesia and Japan.[114] At the time,Mughal Bengal was the most important centre of cotton textile production.[115]
In the early 18th century theMughal Empire declined, as it lost western, central and parts of south and north India to theMaratha Empire, which integrated and continued to administer those regions.[116] The decline of the Mughal Empire led to decreased agricultural productivity, which in turn negatively affected the textile industry.[117] The subcontinent's dominant economic power in the post-Mughal era was theBengal Subah in the east., which continued to maintain thriving textile industries and relatively highreal wages.[118] However, the former was devastated by theMaratha invasions of Bengal[119][120] and thenBritish colonization in the mid-18th century.[118] After the loss at theThird Battle of Panipat, the Maratha Empire disintegrated into several confederate states, and the resulting political instability and armed conflict severely affected economic life in several parts of the country – although this was mitigated by localised prosperity in the new provincial kingdoms.[116] By the late eighteenth century, the BritishEast India Company had entered the Indian political theatre and established its dominance over other European powers. This marked a determinative shift in India's trade, and a less-powerful effect on the rest of the economy.[121]
There is no doubt that our grievances against the British Empire had a sound basis. As the painstaking statistical work of the Cambridge historian Angus Maddison has shown, India's share of world income collapsed from 22.6% in 1700, almost equal to Europe's share of 23.3% at that time, to as low as 3.8% in 1952. Indeed, at the beginning of the 20th century, "the brightest jewel in the British Crown" was the poorest country in the world in terms of per capita income.
From the beginning of the 19th century, the BritishEast India Company's gradual expansion and consolidation of power brought a major change in taxation and agricultural policies, which tended to promote commercialisation of agriculture with a focus on trade, resulting in decreased production of food crops, mass impoverishment and destitution of farmers, and in the short term, led tonumerous famines.[124] The economic policies of theBritish Raj caused a severe decline in thehandicrafts andhandloom sectors, due to reduced demand and dipping employment.[125] After the removal of international restrictions by theCharter of 1813, Indian trade expanded substantially with steady growth.[126] The result was a significant transfer of capital from India to Britain, which, due to the colonial policies of the British, led to a massive drain of revenue rather than any systematic effort at modernisation of the domestic economy.[127] The economy of theIndian subcontinent was thelargest in the world for most of recorded history up until the onset ofcolonialism in early 19th century.[123][128][129]
Under British rule, India's share of the world economy declined from 24.4% in 1700 down to 4.2% in 1950. India's GDP (PPP) per capita was stagnant during theMughal Empire and began to decline prior to the onset of British rule.[128] India's share of global industrial output declined from 25% in 1750 down to 2% in 1900.[110] At the same time, Britain's share of the world economy rose from 2.9% in 1700 up to 9% in 1870. The British East India Company, following theirconquest of Bengal in 1757, had forced open the large Indian market to British goods, which could be sold in India withouttariffs orduties, compared to local Indian producers who were heavily taxed, while in Britainprotectionist policies such as bans and high tariffs were implemented to restrict Indian textiles from being sold there, whereas raw cotton was imported from India without tariffs to British factories which manufactured textiles from Indian cotton and sold them back to the Indian market. British economic policies gave them a monopoly over India's large market and cotton resources.[136][137][138] India served as both a significant supplier of raw goods to British manufacturers and a largecaptive market for British manufactured goods.[139]
British territorial expansion in India throughout the 19th century created an institutional environment that, on paper, guaranteedproperty rights among the colonisers, encouragedfree trade, and created a single currency withfixed exchange rates, standardised weights and measures andcapital markets within the company-held territories. It also established a system ofrailways and telegraphs, a civil service that aimed to be free from political interference, a common-law, and an adversarial legal system.[140] This coincided with major changes in the world economy – industrialisation, and significant growth in production and trade. However, at the end of colonial rule, India inherited an economy that was one of the poorest in the developing world,[141] with industrial development stalled, agriculture unable to feed a rapidly growing population, a largely illiterate and unskilled labour force, and extremely inadequate infrastructure.[142]
The 1872 census revealed that 91.3% of the population of the region constituting present-day India resided in villages.[143] This was a decline from the earlier Mughal era, when 85% of the population resided in villages and 15% in urban centres underAkbar's reign in 1600.[144] Urbanisation generally remained sluggish in British India until the 1920s, due to the lack of industrialisation and absence of adequate transportation. Subsequently, the policy of discriminating protection (where certain important industries were given financial protection by the state), coupled with the Second World War, saw the development and dispersal of industries, encouraging rural-urban migration, and in particular, the large port cities ofBombay,Calcutta andMadras grew rapidly. Despite this, only one-sixth of India's population lived in cities by 1951.[145]
The effect of British rule on India's economy is a controversial topic. Leaders of theIndian independence movement andeconomic historians have blamed colonial rule for India's poor economic performance following independence and argued that the capital required for the Industrial Revolution in Britain came from India. At the same time, other historians have countered that India's poor economic performance was due to various sectors being in a state of growth and decline due to changes brought in by colonialism and a world that was moving towards industrialisation andeconomic integration.[146]
Several economic historians have argued that Indianreal wages declined in the early 19th century, or possibly beginning in the very late 18th century, largely as a result of British colonial rule. According to Prasannan Parthasarathi and Sashi Sivramkrishna, the grain wages of Indian weavers were likely comparable to that of their British counterparts and their average income was around five times the subsistence level, which was comparable to advanced parts of Europe.[147][148] However they concluded that due to the scarcity of data, it was hard to draw definitive conclusions and that more research was required.[111][148] It has also been argued that India went through a period of deindustrialization in the latter half of the 18th century as an indirect outcome of the collapse of the Mughal Empire.[110]
Indianeconomic policy after independence was influenced by the colonial experience, which was seen as exploitative by Indian leaders exposed to the plannedeconomy of the Soviet Union.[142] Domestic policy tended towards protectionism, with a strong emphasis onimport substitution industrialisation,economic interventionism, a large government-runpublic sector,business regulation, andcentral planning,[149] while trade and foreign investment policies were relatively liberal.[150]Five-Year Plans of India resembled central planning in theSoviet Union. Steel, mining, machine tools, telecommunications, insurance, and power plants, among other industries, were effectively nationalised in the mid-1950s.[151] The Indian economy of this period is characterised asDirigism.[51][52]
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Never talk to me about profit, Jeh, it is a dirty word.
— Nehru, India's Fabian Socialism-inspired first prime minister to industrialistJ. R. D. Tata, when Tata suggested state-owned companies should be profitable[154]
Jawaharlal Nehru, the firstprime minister of India, along with the statisticianPrasanta Chandra Mahalanobis, formulated and oversaw economic policy during the initial years of the country's independence. They expected favourable outcomes from their strategy, involving the rapid development ofheavy industry by both public andprivate sectors, and based on direct and indirect state intervention, rather than the more extremeSoviet-style central command system.[155][156] The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidising manual, low-skillcottage industries was criticised by economistMilton Friedman, who thought it would waste capital and labour, and retard the development of small manufacturers.[157]
I cannot decide how much to borrow, what shares to issue, at what price, what wages and bonus to pay, and what dividend to give. I even need the government's permission for the salary I pay to a senior executive.
— J. R. D. Tata, on the Indian regulatory system, 1969[154]
Since 1965, the use ofhigh-yielding varieties of seeds, increasedfertilisers and improvedirrigation facilities collectively contributed to theGreen Revolution in India, which improved the condition of agriculture by increasing crop productivity, improving crop patterns and strengthening forward and backward linkages between agriculture and industry.[158] However, it has also been criticised as an unsustainable effort, resulting in the growth of capitalistic farming, ignoring institutional reforms and widening income disparities.[159]
_Shatabdi_Express_02.JPG)
Indira Gandhi andSanjay Gandhi took several liberalization steps after the coming back to power in 1980 learning from the mistakes of the defeat in 1977. There were several steps taken such as opening of automobile sectors to private sector i.e.Maruti Suzuki,[160] creation of auto component industries through new industrial zones known asIndustrial Model Townships(IMT) andGurgaon, expansion ofsteel,fertilizer,oil andcement sector led to wider participation of private sector.[161][162] They also subsequently tried to do urban reforms such as creation ofNavi Mumbai andNoida.
In 1984, TheNew Computer Policy of 1984 was introduced byRajiv Gandhi, as it eased import restrictions on technology, encouraged private investments, and provided incentives for software exports. This included computers, airlines, defense, and telecommunications. Gandhi's government also established Software Technology Parks (STPs) to provide infrastructure, tax benefits, and faster data communications, enabling companies to export software services globally.[163]Rajiv Gandhi's administration also saw setup of new logistics, telecom and transport infrastructure likeNhava Sheva port,Centre for Development of Advanced Computing,Centre for Development of Telematics,CONCOR and creation of highway bodyNHAI.[164] These reforms led to the growth rate of 5.6% throughout 1980's instead of 2.9% in 1970's butSoviet Union was the largest export partner to India, which would lead to 1991 crisis.[165]
In 1990Rajiv Gandhi introduced measures to significantly reduce theLicence Raj such as allowing private businesses and individuals to purchase capital, consumer goods and import without bureaucratic restrictions.[166]
Rajiv Gandhi subsequently promised full economic liberalization, he madeV. P. Singh the finance minister, who tried to reduce tax evasion and tax receipts rose due to this crackdown although taxes were lowered. This process lost its momentum during the later tenure of Mr. Gandhi as his government was marred by scandals.
The collapse of theSoviet Union, which was India's major trading partner, and theGulf War, which caused a spike in oil prices, resulted in a major balance-of-payments crisis for India, which found itself facing the prospect of defaulting on its loans.[167] India asked for a $1.8 billion bailout loan from theInternational Monetary Fund (IMF), which in return demanded de-regulation.[168]
In response, theNarasimha Rao government, including Finance MinisterManmohan Singh, initiatedeconomic reforms in 1991. The reforms did away with theLicence Raj, reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval offoreign direct investment in many sectors.[169] Since then, the overall thrust of liberalisation has remained the same, although no government has tried to take on powerful lobbies such as trade unions and farmers, on contentious issues such as reforming labour laws and reducingagricultural subsidies.[170] This has been accompanied by increases in life expectancy, literacy rates, and food security, although urban residents have benefited more than rural residents.[171]
From 2010, India has risen from ninth-largest to the fifth-largest economies in the world by nominal GDP in 2019 by surpassing UK,France,Italy andBrazil.[172]
India started recovery in 2013–14 when the GDP growth rate accelerated to 6.4% from the previous year's 5.5%. The acceleration continued through 2014–15 and 2015–16 with growth rates of 7.5% and 8.0% respectively. India grew faster than China which registered 6.9% growth in 2015.[needs update] However the growth rate subsequently decelerated, to 7.1% and 6.6% in 2016–17 and 2017–18 respectively,[173] partly because of the disruptive effects of2016 Indian banknote demonetisation and theGoods and Services Tax (India).[174] But after slowdown due to global disruption caused byCOVID-19 pandemic in 2019, India's economic growth has consistently outperformed China every year by a large margin and stays among fastest growing major economy in the world according toWorld Bank.[175]
During theCOVID-19 pandemic, numerousrating agencies downgraded India's GDP predictions for FY21 to negative figures,[176][177] signalling a recession in India, the most severe since 1979.[178][179] The Indian Economy contracted by 6.6 percent which was lower than the estimated 7.3 percent decline.[180] In 2022, the ratings agencyFitch Ratings upgraded India's outlook to stable similar toS&P Global Ratings andMoody's Investors Service's outlooks.[181] In the first quarter of financial year 2022–2023, the Indian economy grew by 13.5%.[182]
India's defence sector was significantly "opened up" in the 2020s through policies that increased foreign direct investment (FDI) limits to 74% under the automatic route and 100% through government approval, especially for technology access.
Railway reforms aim to modernize the system for greater efficiency, safety, and passenger experience through strategies like the PM Gati Shakti Plan for infrastructure, organizational restructuring into the Indian Railway Management Service (IRMS), and the National Rail Plan 2030 for increased freight and passenger services.
In mid-2025India surpassedJapan to become theFourth Largest Economy in the world in terms of GDP(nominal).[183][184]
The following table shows the main economic indicators in 1980–2024 (with IMF staff estimates in 2025–2029). Inflation below 5% is in green.[185] The annual unemployment rate is extracted from theWorld Bank, although theInternational Monetary Fund finds them unreliable.[186][187]
| Year | GDP (in Bil. US$PPP) | GDP per capita (in US$ PPP) | GDP (in Bil. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Unemployment (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 366.4 | 526.9 | 189.4 | 271.0 | 6.74% |  11.3% | n/a | n/a |
| 1981 | 431.5 | 603.2 | 196.5 | 274.7 | 6.01% | 12.7% | n/a | n/a |
| 1982 | 474.1 | 647.5 | 203.5 | 278.0 | 3.5% | 7.7% | n/a | n/a |
| 1983 | 528.6 | 705.3 | 222.0 | 296.3 | 7.3% | 12.6% | n/a | n/a |
| 1984 | 568.6 | 741.4 | 215.6 | 281.1 | 3.8% |  5.2% | n/a | n/a |
| 1985 | 617.4 | 787.1 | 237.6 | 302.9 | 5.3% | 5.56%[188] | n/a | n/a |
| 1986 | 659.9 | 822.8 | 252.8 | 315.2 | 4.8% | 7.8%[189] | n/a | n/a |
| 1987 | 703.0 | 857.7 | 283.8 | 346.2 | 4.0% | 9.1% | n/a | n/a |
| 1988 | 797.9 | 952.7 | 299.6 | 357.8 | 10.18% | 7.2% | n/a | n/a |
| 1989 | 878.5 | 1,027.0 | 301.2 | 352.2 | 5.9% | 4.6% | n/a | n/a |
| 1990 | 961.8 | 1,101.3 | 326.6 | 374.0 | 5.5% | 11.2% | n/a | n/a |
| 1991 | 1,004.8 | 1,127.4 | 274.8 | 308.4 | 1.1% | 13.5% | 6.8% | 75.3% |
| 1992 | 1,084.1 | 1,192.2 | 293.3 | 322.5 | 5.5% | 9.9% |  6.8% | 77.4% |
| 1993 | 1,162.5 | 1,253.5 | 284.2 | 306.4 | 4.8% | 7.3% | 6.8% | 77.0% |
| 1994 | 1,266.4 | 1,339.2 | 333.0 | 352.2 | 6.7% | 10.3% | 6.8% | 73.5% |
| 1995 | 1,390.8 | 1,442.9 | 366.6 | 380.3 | 7.6% | 10.0% | 7% | 69.7% |
| 1996 | 1,523.2 | 1,550.6 | 399.8 | 407.0 | 7.6% | 9.4% | 7.2% | 66.0% |
| 1997 | 1,612.3 | 1,610.8 | 423.2 | 422.8 | 4.1% | 6.8% | 7.3% | 67.8% |
| 1998 | 1,731.2 | 1,698.1 | 428.8 | 420.6 | 6.2% | 13.1% | 7.5% | 68.1% |
| 1999 | 1,904.2 | 1,834.4 | 466.9 | 449.8 | 8.5% | 5.7% | 7.7% | 70.0% |
| 2000 | 2,024.7 | 1,916.3 | 476.6 | 451.1 | 4.0% | 3.8% | 7.8% | 73.6% |
| 2001 | 2,172.7 | 2,021.1 | 494.0 | 459.5 | 4.9% | 4.3% | 8% | 78.7% |
| 2002 | 2,292.8 | 2,097.1 | 524.0 | 479.2 | 3.9% | 4.0% | 8.2% | 82.9% |
| 2003 | 2,523.8 | 2,270.6 | 618.4 | 556.3 | 7.9% | 3.9% | 8.4% | 84.4% |
| 2004 | 2,795.0 | 2,474.2 | 721.6 | 638.8 | 7.8% | 3.8% | 8.5% | 83.4% |
| 2005 | 3,066.0 | 2.655.3 | 834.2 | 726.9 | 9.3% | 4.4% | 8.7% | 81.0% |
| 2006 | 3,415.2 | 2,913.1 | 949.1 | 814.4 | 9.3% | 6.7% | 8.6% | 77.2% |
| 2007 | 3,776.5 | 3,174.3 | 1,238.7 | 1,046.9 | 10.3% | 6.2% | 8.5% | 74.1% |
| 2008 | 3,968.1 | 3,288.3 | 1,224.1 | 1,019.5 | 3.9% | 9.1% | 8.5% | 72.8% |
| 2009 | 4,306.4 | 3,519.4 | 1,365.4 | 1,121.2 | 7.9% | 12.3% | 8.4% | 71.5% |
| 2010 | 4,729.2 | 3,812.0 | 1,708.5 | 1,384.2 | 8.5% | 10.5% | 8.3% | 66.4% |
| 2011 | 5,079.8 | 4,039.1 | 1,823.1 | 1,458.1 | 6.6% | 9.5% | 8.2% | 68.6% |
| 2012 | 5,456.7 | 4,281.4 | 1,827.6 | 1,443.9 | 5.5% | 10.0% | 8.1% | 68.0% |
| 2013 | 5,904.0 | 4,572.7 | 1,856.7 | 1,449.6 | 6.4% | 9.4% | 8.1% | 67.7% |
| 2014 | 6,451.9 | 4,935.5 | 2,039.1 | 1,573.9 | 7.4% | 5.8% | 8% | 67.1% |
| 2015 | 7,032.5 | 5,316.1 | 2,103.6 | 1,605.6 | 8.0% | 4.9% | 7.9% | 69.0% |
| 2016 | 7,685.5 | 5,741.2 | 2,294.8 | 1,732.6 | 8.3% | 4.5% | 7.8% | 68.9% |
| 2017 | 8,354.7 | 6,169.5 | 2,702.9 | 1,958.0 | 6.8% | 3.6% | 7.7% | 69.7% |
| 2018 | 9,230.8 | 6,742.7 | 2,702.9 | 1,974.4 | 6.5% | 3.4% | 7.7% | 70.4% |
| 2019 | 9,932.8 | 7,181.5 | 2,835.6 | 2,050.2 | 4.2% | 4.8% | 6.5% | 75.0% |
| 2020 | 9,771.0 | 6,997,4 | 2,674.8 | 1,915.6 | -5.8% | 6.1% | 7.9% | 88.5% |
| 2021 | 11,384.4 | 8,088.0 | 3,167.3 | 2,250.1 | 9.7%[190] | 5.5% | 6.4% | 83.7% |
| 2022 | 13,048.1 | 9,207.2 | 3,389.7 | 2,391.9 | 7.6% | 6.7% | 4.8% | 81.0% |
| 2023 | 14,619.8 | 10,233.4 | 3,567.5 | 2,497.2 | 9.2% | 5.5% | 4.7% | 81.9% |
| 2024 | 16,020.0 | 11,111.7 | 3,889.1 | 2,697.6 | 7.0% | 4.6% | n/a | 83.0% |
| 2025 | 17,364.8 | 11,937.8 | 4,271.9 | 2,936.8 | 6.5% | 4.1% | n/a | 82.6% |
| 2026 | 18,831.4 | 12,834.6 | 4,710.4 | 3,210.4 | 6.5% | 4.1% | n/a | 81.8% |
| 2027 | 20,420.1 | 13,801.3 | 5,193.5 | 3,510.1 | 6.5% | 4.0% | n/a | 80.7% |
| 2028 | 22,143.7 | 14,844.9 | 5,723.2 | 3,836.8 | 6.5% | 4.0% | n/a | 80.0% |
| 2029 | 24,015.1 | 15,973.1 | 6,307.2 | 4,195.1 | 6.5% | 4.0% | n/a | 78.4% |
| Country | 1990 | Country | 2000 | Country | 2010 | Country | 2020 | Country | 2030 |
|---|---|---|---|---|---|---|---|---|---|
 United States | 5,963 | United States | 10,250 | United States | 15,048 | United States | 21,354 | United States | 37,153 |
 Japan | 3,185 | Japan | 4,968 |  China | 6,138 | China | 15,103 | China | 25,827 |
 Germany | 1,604 | Germany | 1,967 | Japan | 5,759 | Japan | 5,054 |  India | 6,769 |
 France | 1,260 |  United Kingdom | 1,668 | Germany | 3,470 | Germany | 3,936 | Germany | 5,575 |
| United Kingdom | 1,197 | France | 1,361 | France | 2,648 | United Kingdom | 2,698 | Japan | 4,994 |
 Italy | 1,164 | China | 1,220 | United Kingdom | 2,487 | India | 2,674 | United Kingdom | 4,955 |
 Canada | 596 | Italy | 1,150 |  Brazil | 2,208 | France | 2,645 | France | 3,754 |
 Iran | 581 | Canada | 744 | Italy | 2,146 | Italy | 1,905 | Canada | 2,792 |
 Spain | 536 |  Mexico | 742 | India | 1,675 |  South Korea | 1,744 | Italy | 2,779 |
| Brazil | 455 | Brazil | 655 |  Russia | 1,633 | Canada | 1,655 | Brazil | 2,679 |
| China | 397 | Spain | 598 | Canada | 1,617 | Russia | 1,488 | Russia | 2,384 |
 Australia | 324 | South Korea | 597 | Spain | 1,429 | Brazil | 1,476 | Spain | 2,201 |
 Netherlands | 321 | India | 468 | Australia | 1,254 | Australia | 1,362 | Australia | 2,181 |
| India | 320 | Netherlands | 417 | South Korea | 1,192 | Spain | 1,288 | Mexico | 2,151 |
| Mexico | 307 | Australia | 400 | Mexico | 1,105 | Mexico | 1,121 | South Korea | 2,149 |
| Sectors | FY 2011-12 | FY 2012-13 | FY 2013-14 | FY 2014-15 | FY 2015-16 | FY 2016-17 | FY 2017-18 | FY 2018-19 | FY 2019-20 | FY 2020-21 | FY 2021-22 | FY 2022-23 | FY 2023-24 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Primary | 21.7 | 21.3 | 21.4 | 20.9 | 20.1 | 20.4 | 20.4 | 19.8 | 20.3 | 22.1 | 21.0 | 20.1 | 19.7 |
| Secondary | 29.3 | 28.7 | 27.9 | 27.3 | 27.6 | 27.0 | 27.0 | 26.9 | 25.0 | 25.6 | 26.8 | 25.6 | 25.9 |
| Tertiary | 49.0 | 50.0 | 50.6 | 51.8 | 52.3 | 52.6 | 52.5 | 53.3 | 54.8 | 52.3 | 52.2 | 54.3 | 54.4 |
Agriculture and allied sectors like forestry, logging and fishing accounted for 18.4% of the GDP,[9] the sector employed 51.2 crore persons or 45.5% of the workforce in India are employed in agriculture.[194][195] India is major agriculture producing country and has the most arable land in the world followed by the United States.[196] However, agricultural output lags far behind its potential.[197] Agriculture's contribution to GDP has steadily declined from 1951 to 2023, shifting from 52% to 15% of India's GDP[198][199] yet it is still the country's largest employment provider sector .[194] Crop-yield-per-unit-area of all crops has grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the Green Revolution in India. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world.[200] The states ofUttar Pradesh,Punjab, Haryana,Madhya Pradesh, Andhra Pradesh,Telangana, Bihar,West Bengal, Gujarat andMaharashtra are key contributors to Indian agriculture.
India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annualprecipitation of 4,000 billion cubic metres, with the total utilisablewater resources, including surface andgroundwater, amounting to 1,123 billion cubic metres.[201] 546,820 square kilometres (211,130 sq mi) of the land area, or about 39% of the total cultivated area, is irrigated.[202] India's inland water resources and marine resources provide employment to nearly 6 million people in the fisheries sector. In 2023, according to the Ministry of Fisheries, India is the 3rd largest fish producing and 2nd largest aquaculture producing nation in the world.
India is the largest producer of milk, jute andpulses, and has the world's largest cattle population with 303 million animals in 2023.[204] It is the second-largest producer of rice, wheat, sugarcane, cotton andgroundnuts, as well as the second-largest fruit and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production, respectively, but only for 1% of global fruits and vegetables trade. India is also the second-largest producer and the largest consumer of silk, producing 77,000 tonnes (76,000 long tons; 85,000 short tons) in 2005.[205] India is the second-largest exporter of cashew kernels and cashew nut shell liquid (CNSL). Foreign exchange earned by the country through the export of cashew kernels during FY 2023 reached 356M$. 76,624 tonnes (75,414 long tons; 84,464 short tons) of kernels were exported during 2023.[206] There are about 600 cashew processing units inKollam, Kerala.[203]
India's foodgrain production stagnant at approximately 316 megatonnes (311 million long tons; 348 million short tons) during 2020–21.[207] India exports several agriculture products, such as Basmati rice, wheat, cereals, spices, fresh fruits, dry fruits, cotton, tea, coffee, milk products and other cash crops to the Asian, African and other countries.[208]
The low productivity in India is a result of several factors. Over-regulation of agriculture has increased costs, price risks and uncertainty, and governmental intervention in labour, land, and credit are hurting the market. Infrastructure such as rural roads, electricity, ports, food storage, retail markets and services remain inadequate.[209] The average size of land holdings is very small, with 70% of holdings being less than one hectare (2.5 acres) in size.[210] Irrigation facilities are inadequate, as revealed by the fact that only 46% of the total cultivable land was irrigated as of 2016,[update][202] resulting in farmers still being dependent on rainfall, specifically themonsoon season, which is often inconsistent and unevenly distributed across the country.[211] In an effort to bring an additional 20,000,000 hectares (49,000,000 acres) of land under irrigation, various schemes have been attempted, including the Accelerated Irrigation Benefit Programme (AIBP) which was provided₹800 billion (equivalent to₹1.2 trillion or US$14 billion in 2023) in theUnion Budget.[212] Farming incomes are also hampered by lack of food storage and distribution infrastructure; a third of India's agricultural production is lost from spoilage.[213]
The automotive industry in India is one of the largest and fastest-growing globally, contributing significantly to the country's economy, employment, and export performance. As of 2023, India ranked as thefourth-largest automobile producer in the world, following China, United States and Japan. The sector accounts for approximately 7.1% of India's GDP and employs over 37 million people directly and indirectly.[214][215] As of April 2022[update], India's auto industry is worth more than US$100 billion and accounts for 8% of the country's total exports and 7.1% of India's GDP.[216]
India's automotive market comprises both domestic and international manufacturers. Key passenger vehicle producers includeMaruti Suzuki,Hyundai Motor India,Tata Motors,Mahindra & Mahindra,Kia India, andToyota Kirloskar Motor. In the two-wheeler segment, leading companies areHero MotoCorp,Honda Motorcycle and Scooter India,TVS Motor, andBajaj Auto. The commercial vehicle space is dominated byTata Motors,Ashok Leyland, andMahindra & Mahindra.
| Type | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | |
|---|---|---|---|---|---|---|---|
| Passenger Vehicles | Production | 3,424,564 | 3,062,280 | 3,650,698 | 4,587,116 | 4,901,840 | 5,061,164 |
| Domestic Sales | 2,773,519 | 2,711,457 | 3,069,523 | 3,890,114 | 4,218,750 | 4,301,848 | |
| Export Sales | 662,118 | 404,397 | 577,875 | 662,891 | 672,105 | 770,364 | |
| Commercial Vehicles | Production | 756,725 | 624,939 | 805,527 | 1,035,626 | 1,067,504 | 1,032,645 |
| Domestic Sales | 717,593 | 568,559 | 716,566 | 962,468 | 968,770 | 956,671 | |
| Export Sales | 60,379 | 50,334 | 92,297 | 78,645 | 65,818 | 80,986 | |
| Three wheelers | Production | 1,132,982 | 614,613 | 758,669 | 855,696 | 996,159 | 1,050,020 |
| Domestic Sales | 637,065 | 219,446 | 261,385 | 488,768 | 694,801 | 741,420 | |
| Export Sales | 501,651 | 393,001 | 499,730 | 365,549 | 299,977 | 306,914 | |
| Two wheelers | Production | 21,032,927 | 18,349,941 | 17,821,111 | 19,459,009 | 21,468,527 | 23,883,857 |
| Domestic Sales | 17,416,432 | 15,120,783 | 13,570,008 | 15,862,771 | 17,974,365 | 19,607,332 | |
| Export Sales | 3,519,405 | 3,282,786 | 4,443,131 | 3,652,122 | 3,458,416 | 4,198,403 |
India began its first few steps during the years 1978-80 when early conditions for SMEs or entrepreneurship were hostile too. 63 million MSMEs in India which contribute35% to the country's GDP provides employment to 111.4 million persons and accounts for more than 40% of India's exports and are hailed as the 'growth engines' of the economy. China has been creating 16,000-18,000 new enterprises per day for the last 5 years. When one compares that with India, it is about 1000-1100 per day.[218]
Micro and small enterprises have the potential to resolve India's unemployment crisis provided the constraints impeding the growth of the sector are resolved. According to Annual MSME Report 2021-22, over 90 per cent of India's 6.3 crore MSMEs are in the micro-segment. Within the micro sector, 62 per cent firms are self-employments which no workers, another 32 per cent have two or three workers and just 6-7 per cent have four workers or above (up to 19).[219] In 2023, SME IPOs set a record-breaking year with 179 listings.
In Budget 2023, The government has implemented a number of reforms aimed at boosting MSMEs' growth in India while also improving their international competitiveness.[220]
Machinery and equipment market is expected to grow 8% from 2024 to 2029. India's Industrial Machinery Equipment and Tools market size is expected to be $210 billion in 2023.The rise in R&D and large number of startups has led to increase in investment in tools, industrial equipment, robotics, industrial automation, pharmaceutical machinery, mining & construction equipment.[221]
Indian Government has launched an initiative in promoting electrification of fossil-fuel based equipment hence reducing carbon footprint and leading to new innovations.[222]
India has, in 2022, a reported 1,319 mines of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 775.[223]
Mining contributed to 1.75% of GDP and employed directly or indirectly 11 million people in 2021.[224] India's mining industry was the fourth-largest producer of minerals in the world by volume, and eighth-largest producer by value in 2009.[225] In 2013, it mined and processed 89 minerals, of which four were fuel, three were atomic energy minerals, and 80 non-fuel.[226] The public sector accounted for 68% of mineral production by volume in 2011–12.[227] India has the world's fourth-largestnatural resources, with themining sector contributing 11% of the country's industrial GDP and 2.5% of total GDP.
Nearly 50% of India's mining industry, by output value, is concentrated in eight states:Odisha, Rajasthan,Chhattisgarh, Andhra Pradesh,Telangana, Jharkhand,Madhya Pradesh andKarnataka. Another 25% of the output by value comes from offshore oil and gas resources.[227] India operated about 3,000 mines in 2010, half of which were coal, limestone and iron ore.[228] On output-value basis, India was one of the five largest producers of mica, chromite, coal, lignite, iron ore, bauxite, barite, zinc and manganese; while being one of the ten largest global producers of many other minerals.[225][227] India was the fourth-largest producer of steel in 2013,[229] and the seventh-largest producer of aluminium.[230]
India's mineral resources are vast.[231] However, its mining industry has declined – contributing 2.3% of its GDP in 2010 compared to 3% in 2000, and employed 2.9 million people – a decreasing percentage of its total labour. India is a net importer of many minerals including coal. India's mining sector decline is because of complex permit, regulatory and administrative procedures, inadequate infrastructure, shortage of capital resources, and slow adoption of environmentally sustainable technologies.[227][232]
Indian cement industry is the 2nd largest cement producing country in the world, next only to China. At present, the Installed Capacity of Cement in India is 500 MTPA with production of 298 million tonnes per annum. Majority of the cement plants installed capacity (about 35%) is located in the states of south India. In PAT scheme, Total Installed Capacity of Cement in India is 325 MTPA which contributes to 65% coverage of total installed capacity in India.
India surpassed Japan as the second largest steel producer in January 2019.[233] As per worldsteel, India's crude steel production in 2018 was at 106.5 tonnes (104.8 long tons; 117.4 short tons), 4.9% increase from 101.5 tonnes (99.9 long tons; 111.9 short tons) in 2017, which means that India overtook Japan as the world's second largest steel production country.
According to data presented by PIB(FY2021-22), there are more than 900 steel plants in India that produce crude steel. These are owned by PSUs, large-scale companies as well as small and medium enterprises (SMEs). In the year 2021–22, the total capacity of these plants stood at 154.06 million tonnes.[234]
The total market value of the Indian steel sector stood at US$57.8 billion in 2011 and is predicted to touch US$95.3 billion by 2016.Growth of crude steel production in India has not kept pace with the growth in capacity of production, according to the report. As per this report, steel sector contributes 2 per cent to India's GDP and employs half a million people directly and 2 million people indirectly. The Indian steel sector has been vibrant, growing at a compounded rate of 6% year-on-year.[235] Multiple integrated steel plants both state-owned and private are using automated AI-based systems for production.[236]
Petroleum products and chemicals are a major contributor to India's industrial GDP, and together they contribute over 34% of its export earnings. India hostsmany oil refinery and petrochemical operations developed with help ofSoviet technology such asBarauni Refinery andGujarat Refinery, it also includes the world's largest refinery complex inJamnagar that processes 1.24 million barrels of crude per day.[237] By volume, the Indian chemical industry was the third-largest producer in Asia, and contributed 5% of the country's GDP. India is one of the five-largest producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals.[238] Despite being a large producer and exporter, India is a net importer of chemicals due to domestic demands.[239] India'schemical industry is extremely diversified and estimated at $178 billion.[240]
The chemical industry contributed $163 billion to the economy in FY18 and is expected to reach $300–400 billion by 2025.[241][242] The industry employed 17.33 million people (4% of the workforce) in 2016.[243]
At present, 57 large fertilizer units are manufacturing a wide number of nitrogen fertilizers. These include 29 urea-producing units and 9 ammonia sulfate-producing units as a by-product. Besides, there are 64 small-scale producing units of single super phosphate.[244]
According to the latest data released by the WTO, India has emerged as the second largest exporter of agrochemicals in the world. The rank was sixth, 10 years ago. The Indian agrochemical industry fetches valuable trade surplus every year. The trade surplus sharply increased from Rs. 8,030 crores in 2017–18 to Rs. 28,908 crores in the last fiscal.India's agrochemicals export has doubled in the last 6 years from $2.6 bn in 2017–18 to $5.4 bn in the last financial year according to the data recently released by Ministry of Commerce. It has grown at an impressive CAGR of 13% which is among the highest in the manufacturing sector.[245]
Millions of farmers in over 130 countries trust Indian agrochemicals for their high quality and affordable prices, said an industry observer. With the global agrochemicals market estimated at $78 billion, predominantly comprising post-patent products, India is rapidly becoming a preferred global hub for sourcing such agrochemicals. To bolster domestic production and reduce imports, the Crop Care Federation of India (CCFI) has recommended specific measures to the Government of India.[246]
TheIndian Railways contributes to ~3% of the country's gross domestic product (GDP) and has social obligations pegged at $5.3 billion annually.[247] Indian Railways revenue has grown at 5% CAGR in the past 5 years but profitability has reduced drastically in the past 4 years, due to growing infrastructure and modernization expenses. With a workforce of 1.31 million people, the IR is also one of the country's largest employers. The railways is a major contributor to jobs, GDP, and mobility.[248]
Indian Railways has decided to revise its 2022–23 rolling stock production plan upwards. The Ministry's new plan targets the production of 8,429 units for the coming financial year. Production for 2022–23 has been raised by 878 units from the earlier planned 7,551, according to the revised targets.[249] Indian Railways has targeted to manufacture 475 newVande Bharat trainsets for the next four years as a part of its modernization plan.[250] It is about Rs 40,000 crore($5 billion) business opportunity that would also create 15,000 jobs and several spin-off benefits.[251]Indian Railway's CORE aims to electrify all of its broad gauge network by 31 March 2024.[252] The entire electrified mainline rail network in India uses25 kV AC; DC is used only formetros. As of July 2023, India currently has 90% of total train tracks fully electrified.[253]
Under the eleventh Five Year Plan of India (2007–12), theMinistry of Railways started constructing a newDedicated Freight Corridor (DFC) in two long routes, namely theEastern andWestern freight corridors.[254] The two routes cover a total length of 3,260 kilometres (2,030 mi), with theEastern Dedicated Freight Corridor stretching fromLudhiana inPunjab toDankuni inWest Bengal and theWestern Dedicated Freight Corridor fromJawaharlal Nehru Port inMumbai (Maharashtra) toDadri inUttar Pradesh.[255] The DFC will generate around 42,000 jobs and provide long term employment to many people in public sector and private sector.[citation needed]
India is developing modernmass rapid transit systems to meet present and future urban requirements. A modern metro rail system is already in place in the cities ofNavi Mumbai,Delhi,Mumbai,Bangalore,Kolkata,Hyderabad,Kochi,Gurgaon,Jaipur,Noida,Pune,Nagpur,Kanpur,Ahmedabad andLucknow. Similar mass transit systems are intended forAgra,Bhopal,Indore,Surat,Patna,Bhubaneswar Tri-city,Chandigarh Tri-city, Gwalior,Mysore,Nashik,Prayagraj,Varanasi,Ranchi,Thane andTrivandrum.Former Prime MinisterAtal Bihari Vajpayee has been credited with success of the metro systems in India and every metro has followedDelhi Metro model generating lot of real estate wealth in India specially in smaller cities likeGurgaon andNoida. For Elevated corridor, there is no need for land acquisition as pillars are built aboveMedian strip of a road.[256][citation needed] Land prices in tier-II cities such as Lucknow, Patna, Jaipur, Ahmedabad, Pune, Kochi, and Coimbatore have gone up by almost 8-10 percent following the introduction of a metro corridor in these cities, an assessment by JLL has said.[257]
India is also developing modernRRTS system to replace the oldMRTS system which will provide connectivity inDelhi Metropolitan Area andMumbai Metropolitan Region which will serve the suburbs of these big cities at 80–100 km of distance from city centre.[citation needed]
India is the fourth-largest civil aviation market in the world recording an air traffic of 158 million passengers in 2017.[258][259] The market is estimated to have 800 aircraft by 2020, which would account for 4.3% of global volumes,[260] and is expected to record annual passenger traffic of 520 million by 2037.[259]IATA estimated that aviation contributed $30 billion to India's GDP in 2017, and supported 7.5 million jobs – 390,000 directly, 570,000 in the value chain, and 6.2 million through tourism.[259]
As of 2024, There are 75 new airports have been built in the last ten years, taking the total count to 149 airports (include helipads and aerodromes). Government vision is to take this milestone 149 to 220 airports in the next 5 to 7 years andGovernment of India has a Rs 1 lakh crore capex plan to spend on Airport infrastructure.[261]
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The Shipbuilding Financial Assistance Policy (SBFAP) was introduced in 2016, provides financial assistance to Indian shipyards for shipbuilding contracts. According to the ministry of ports, shipping and waterways, under SBFAP, a total of 313 domestic and export vessel orders were procured by 39 shipyards since the inception of the scheme, with the total value standing at about ₹10,500 crore($1.26 billion).[262]
India has multiple ship building companies such asCochin Shipyard,Hindustan Shipyard andSwan Defence and Heavy Industries, mainly produces ships for European, South American and African shipping companies. Cochin shipyard is the pioneer in autonomous electric propulsion ships.[263]
India has emerged as the leading data centre hub in the Asia-Pacific region (excluding China), surpassing established players like Singapore, Australia, South Korea, Japan, and Hong Kong in installed capacity. This reflects the escalating demand for data services in one of the world's fastest-growing major economies.With a current installed capacity of 950 MW and projections indicating an additional 850 MW by 2026, India is poised to solidify its position as a key player in the Asia-Pacific data centre landscape.[264]
In Hyderabad, The largest datacentre is spread over 1. 31 lakh square feet, the proposed rated-4 (tier-4) data centre will be equipped with 1,600 racks and powered by 18MW of electricity.[265]
India's overall public cloud services market is projected to hit US $13 billion by 2026, expanding at a CAGR of 23.1% in 2021-26. The market's revenue totaled US $2.8 billion for the first half of 2022.[266]
The telecommunication sector generated₹2.20 trillion (US$26 billion) in revenue in 2014–15, accounting for 1.94% of total GDP.[267] Telecom equipment manufacturing and exports are becoming a new success story following the success of smartphone exports. In the financial year 2024, the telecom equipment production exceeded the milestone of Rs 45,000 crore with exports totaling approximately Rs 10,500 crore.[268] India is the second-largest market in the world by number of telephone users (both fixed and mobile phones) with 1.053 billion subscribers as of 31 August 2016.[update] It has one of the lowest call-tariffs in the world, due to fierce competition among telecom operators. India has the world's third-largest Internet user-base. As of 31 March 2016,[update] there were 342.65 million Internet subscribers in the country.[269] India'stelecommunication industry is the world's second largest by the number of mobile phone, smartphone, and internet users.
Industry estimates indicate that there are over 554 million TV consumers in India as of 2012.[update][270] India is the largestdirect-to-home (DTH) television market in the world by number of subscribers. As of May 2016,[update] there were 84.80 millionDTH subscribers in the country.[271]
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With over 1.3 million active personnel, theIndian Army is thethird-largest military force and the largest volunteer army. Defence expenditure was pegged at US$70.12 billion for fiscal year 2022–23 and, increased 9.8% than previous fiscal year.[272] India is the world's second largest arms importer; between 2016 and 2020, it accounted for 9.5% of the totalglobal arms imports.[273] India exported military hardware worth₹159.2 billion (US$1.9 billion) in the financial year 2022–23, the highest ever and a notable tenfold increase since 2016–17.[274]
Primary energy consumption of India is the third-largest after China and US with 5.3% global share in the year 2015.[275] Coal and crude oil together account for 85% of the primary energy consumption of India. India'soil reserves meet 25% of the country's domestic oil demand.[276][277] As of April 2015,[update] India's total proven crude oil reserves are 763.476 megatonnes (751.418 million long tons; 841.588 million short tons), while gas reserves stood at 1,490 billion cubic metres (53 trillion cubic feet).[278] Oil and natural gas fields are located offshore atAshoknagar Oil Field,Bombay High,Krishna Godavari Basin,Mangala Area and theCauvery Delta, and onshore mainly in the states ofWest Bengal,Assam, Gujarat andRajasthan. India is the fourth-largest consumer of oil and net oil imports were nearly₹8.2 trillion (US$97 billion) in 2014–15,[278] which had an adverse effect on the country'scurrent account deficit. The petroleum industry in India mostly consists of public sector companies such asOil and Natural Gas Corporation (ONGC),Hindustan Petroleum Corporation Limited (HPCL),Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in the oil sector such asReliance Industries Limited (RIL) which operates the world's largest oil refining complex.[279]
India became the world's third-largest producer of electricity in 2013 with a 4.8% global share in electricity generation, surpassing Japan and Russia.[280] By the end of calendar year 2015, India had an electricity surplus with many power stations idling for want of demand.[281] The utility electricity sector had an installed capacity of 303GW as of May 2016[update] of whichthermal power contributed 69.8%,hydroelectricity 15.2%, other sources ofrenewable energy 13.0%, andnuclear power 2.1%.[282] India meets most of its domestic electricity demand through its 106 gigatonnes (104 billion long tons; 117 billion short tons) of proven coal reserves.[283] India is also rich in certain alternativesources of energy with significant future potential such assolar,wind andbiofuels (jatropha, sugarcane). India's dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years.[284] Recent discoveries in theTummalapalle belt may be among the top 20 natural uranium reserves worldwide,[285][286][287][needs update] and an estimated reserve of 846,477 tonnes (833,108 long tons; 933,081 short tons) ofthorium[288] – about 25% of world's reserves – are expected to fuel the country's ambitiousnuclear energy programme in the long run. TheIndo-US nuclear deal has also paved the way for India to import uranium from other countries.[289]
India's infrastructure and transport sector contributes around 5% to the country's gross domestic product (GDP).[290]
India's totalroad network is over 6.6 million km, making it thesecond largest in the world as of early 2025. This expansive network comprisesnational highways,state highways, and other roads and is crucial for transportation, with roads carrying over 85% of passenger traffic and more than 70% of freight.[291]
India has rapidly expanded its network of expressways and national highways. As of 2024[update], more than 45,000 kilometres (28,000 mi) of 4-lane and above highways have been built, including flagship projects such as theDelhi–Mumbai Expressway,Surat–Chennai Expressway,Ganga Expressway,Dwarka Expressway, andDelhi–Meerut Expressway.[292]
India has a coastline of 11,098.81 kilometres (6,896.48 mi), with 13 major ports and more than 200 non-major and private ports.[293][294] These handle around 95% of India's external trade by volume and about 70% by value.Kandla (Deendayal) Port in Gujarat is the largest public port, whileMundra Port (operated by Adani Ports) is the largest private port in India. Under theSagarmala project, port-led development and modernization of coastal infrastructure are being accelerated.
India currently has around 153 operational airports managed by theAirport Authority of India (AAI), including 29international airports, 10customs airports, and 114domestic airports, along with 23 civil enclaves at defenceairfields. This number reflects significant growth, as it was 74 in 2014 and has more than doubled, a result of government initiativesUDAN.[295]
India hosts multiple global-scale infrastructure and transport companies such asAfcons Infrastructure,Adani Ports & SEZ,JSW Infrastructure, andLarsen & Toubro, which operate across roads, ports, metro systems, and international projects.
The construction sector—including infrastructure and real estate services—now accounts for approximately18 % of India's total economic output, reflecting a decade-long compound annual growth rate (CAGR) of about11 %.[296] It remains thesecond-largest employment generator in the economy, currently employing roughly71 million people and forecasted to exceed100 million jobs by 2030.[297]
In Q4 2024–25, real gross value added (GVA) from construction reached₹4.64 lakh crore, a year-on-year growth of10.8 %, contributing strongly to GDP growth.[298] For the full fiscal year 2024–25, construction GVA at constant (real) prices stood at₹15.72 lakh crore, showing a9.4 % increase over the previous year; nominal GVA rose to₹26.27 lakh crore, also up9.4 % year-on-year.[299]
In 2016, the construction industry contributed US$288 billion (13% of GDP) and employed 60.4 million people (14% of the workforce).[243] Today, the sector's share has grown significantly, underscoring its expanding economic and employment contributions.
The real estate segment is set to generate substantial opportunities in business, employment, and the startup ecosystem. The2023 Union budget of India allocated nearly₹10 trillion toward infrastructure, further bolstering this growth trajectory.[300]
TheMGNREGA scheme continues to play a dual role in rural employment and infrastructure development:- InFY24, approximately83.2 million people were provided work, generating over312 crore person-days—a post-pandemic high.[301]- InFY25, despite slight declines, the scheme still delivered over288 crore person-days—well above pre-pandemic levels.[302]
| Indicator | Value |
|---|---|
| Construction sector real GVA | ₹15.72 lakh crore (↑ 9.4% YoY) |
| Construction sector nominal GVA | ₹26.27 lakh crore (↑ 9.4% YoY) |
| Estimated employment in construction | ~71 million (projected 100 million by 2030) |
| MGNREGA person-days generated | >312 crore (FY24); >288 crore (FY25) |
India is massively privatizingairports, ports,bus stands,railway stations,dams,dam wind park,[303]solar parks,floating solar plants,power transmission,highways,thermal power and other utilizes.
The financial services industry contributed $809 billion (37% of GDP) and employed 14.17 million people (3% of the workforce) in 2016, and the banking sector contributed $407 billion (19% of GDP) and employed 5.5 million people (1% of the workforce) in 2016.[243] The Indianmoney market is classified into the organised sector, comprising private, public and foreign-ownedcommercial banks andcooperative banks, together known as 'scheduled banks'; and the unorganised sector, which includes individual or family-owned indigenous bankers ormoney lenders andnon-banking financial companies.[304] The unorganised sector andmicrocredit are preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes such as short-term loans for ceremonies.[305]
Prime MinisterIndira Gandhi nationalised 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors including agriculture, small-scale industry, retail trade and small business, to ensure that the banks fulfilled their social and developmental goals. Since then, the number of bank branches has increased from 8,260 in 1969 to 72,170 in 2007 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The totalbank deposits increased from₹59.1 billion (equivalent to₹2.8 trillion or US$33 billion in 2023) in 1970–71 to₹38.31 trillion (equivalent to₹96 trillion or US$1.1 trillion in 2023) in 2008–09. Despite an increase of rural branches – from 1,860 or 22% of the total in 1969 to 30,590 or 42% in 2007 – only 32,270 of 500,000 villages are served by a scheduled bank.[306][307]
India's gross domesticsavings in 2006–07 as a percentage of GDP stood at a high 32.8%.[308] More than half of personal savings are invested in physical assets such as land, houses, cattle, and gold.[309] The government-owned public-sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.[310] Since liberalisation, the government has approved significant banking reforms. While some of these relate to nationalised banks – such as reforms encouraging mergers, reducing government interference and increasing profitability and competitiveness – other reforms have opened the banking and insurance sectors to private and foreign companies.[276][311]
The retail industry, excluding wholesale, contributed $793 billion (10% of GDP) and employed 35 million people (8% of the workforce) in 2020. The industry is the second largest employer in India, after agriculture.[312][313][314] The Indian retail market is estimated to be US$600 billion and one of the top-five retail markets in the world by economic value. India has one of the fastest-growing retail markets in the world,[315][316] and is projected to reach $1.3 trillion by 2020.[317][318] India hasretail market worth $1.17 trillion, which contributes over 10% of India's GDP. It also has one of the world's fastest growinge-commerce markets.[319] The e-commerce retail market in India was valued at $32.7 billion in 2018, and is expected to reach $71.9 billion by 2022.[320]
India's retail industry mostly consists of localmom-and-pop stores, owner-staffed shops and street vendors. Retail supermarkets are expanding, with a market share of 4% in 2008.[321] In 2012, the government permitted 51% FDI in multi-brand retail and 100% FDI in single-brand retail. However, a lack of back-end warehouse infrastructure and state-level permits and red tape continue to limit growth of organised retail.[322] Compliance with over thirty regulations such as "signboard licences" and "anti-hoarding measures" must be made before a store can open for business. There are taxes for moving goods from state to state, and even within states.[321]
TheWorld Travel & Tourism Council calculated that tourism generated₹15.24 trillion (US$180 billion) or 9.4% of the nation's GDP in 2017 and supported 41.622 million jobs, 8% of its total employment. The sector is predicted to grow at an annual rate of 6.9% to₹32.05 trillion (US$380 billion) by 2028 (9.9% of GDP).[323] Over 10 million foreign tourists arrived in India in 2017 compared to 8.89 million in 2016, recording a growth of 15.6%.[324] Thetourism industry contributes about 9.2% of India's GDP and employs over 42 million people.[325] India earned $21.07 billion in foreign exchange from tourism receipts in 2015.[326] International tourism to India has seen a steady growth from 2.37 million arrivals in 1997 to 8.03 million arrivals in 2015.Bangladesh is the largest source of international tourists to India, while European Union nations and Japan are other major sources of international tourists.[327][328] In 2024,Ayodhya, particularly with theRam Temple became Uttar Pradesh's top tourist destination, attracting more domestic and international visitors.[329]Coorg became the top fastest growing destination and hill station in 2024.[330][331] Less than 10% of international tourists visit theTaj Mahal, with the majority visiting other cultural, thematic and holiday circuits.[332] Over 12 million Indian citizens take international trips each year for tourism, while domestic tourism within India adds about 740 million Indian travellers.[327]India has a fast-growingmedical tourism sector of its health care economy, offering low-cost health services and long-term care.[333][334] In October 2015, the medical tourism sector was estimated to be worth US$3 billion. It is projected to grow to $7–8 billion by 2020.[335] In 2014, 184,298 foreign patients traveled to India to seek medical treatment.[336]
India's wedding industry has a size of $75 billion, second largest after China. It is the fourth largest industry in India.[337] The wedding industry saw significant growth in 2023 as weddings became larger and more extravagant post the pandemic blues. Average guest size grew by nearly 15%, from 270 guests in 2022 to 310 in 2023. Celebrations also expanded, with couples now hosting an average of 4.2 functions, up from 3.2.A significant 27 lakh weddings fall in the ₹10-25 lakh range, reflecting the popularity of mid-range wedding budgets. Smaller budgets like ₹3 lakh and ₹6 lakh account for 10 lakh weddings each, while high-end weddings costing ₹1 crore or more make up 50,000 weddings.
India hosts the highest number of weddings in the world each year, as per investment banking and capital market firm Jefferies. However, in terms of market size, the Indian wedding industry is still smaller than China's but almost twice as big as the US's.[338]
The Indian cinema industry is expected to garner a revenue of around Rs 16,198 crore by 2026, of which Rs 15,849 would be Box office revenue and the rest Rs 349 crore from advertising, the report added.[339]India's Recorded Music industry (which is a key sub-segment) is making steady progress at a CAGR of 13.6 percent, thanks to streaming models.[339]
India's regional economies vary significantly in terms of output, industrial composition, and development levels.Maharashtra has the largest state economy, contributing over 13% to the national GDP, followed byTamil Nadu,Karnataka,Gujarat, andUttar Pradesh.[340] These five states collectively account for nearly half of India's economic output.Southern states such as Tamil Nadu, Karnataka, andTelangana are known for strong performance in services and manufacturing, while western states like Gujarat and Maharashtra are industrial powerhouses. In contrast, eastern and central states such asBihar,Jharkhand, andChhattisgarh exhibit lower GDPs, reflecting ongoing challenges in industrialisation and infrastructure. Union Territories likeDelhi andChandigarh, though smaller in size, have high per capita incomes due to urban-centric service-driven economies. This economic landscape highlights both growth opportunities and regional disparities, underscoring the need for tailored economic strategies across states.
| S.No | State/UT | GSDP (₹ Lakh Crore) | GSDP (Billion USD) | Share % | Equivalent Country (Nominal GDP) |
|---|---|---|---|---|---|
| 1 | Maharashtra | 42.67 | 497.86 | 13.17% |  Austria |
| 2 | Tamil Nadu | 30.97 | 361.45 | 9.56% |  Denmark |
| 3 | Karnataka | 28.13 | 328.17 | 8.68% |  Malaysia |
| 4 | Gujarat | 27.99 | 326.54 | 8.64% |  Singapore |
| 5 | Uttar Pradesh | 26.63 | 310.88 | 8.22% |  Philippines |
| 6 | West Bengal | 18.76 | 219.01 | 5.79% |  New Zealand |
| 7 | Rajasthan | 17.13 | 199.79 | 5.29% |  Hungary |
| 8 | Andhra Pradesh | 15.81 | 184.53 | 4.88% |  Romania |
| 9 | Telangana | 15.26 | 178.00 | 4.71% |  Ukraine |
| 10 | Madhya Pradesh | 15.12 | 176.37 | 4.67% | Ukraine |
| 11 | Kerala | 12.31 | 143.64 | 3.80% |  Slovakia |
| 12 | Haryana | 12.19 | 142.24 | 3.76% |  Ecuador |
| 13 | Delhi | 11.33 | 132.23 | 3.50% |  Kenya |
| 14 | Bihar | 9.76 | 113.96 | 3.01% |  Sri Lanka |
| 15 | Odisha | 9.42 | 109.94 | 2.91% |  Croatia |
| 16 | Punjab | 8.91 | 104.00 | 2.75% |  Luxembourg |
| 17 | Assam | 6.46 | 75.39 | 2.00% |  Bulgaria |
| 18 | Chhattisgarh | 5.80 | 67.68 | 1.59% |  Serbia |
| 19 | Jharkhand | 4.82 | 56.25 | 1.32% |  Ethiopia |
| 20 | Uttarakhand | 3.80 | 44.34 | 1.05% |  Latvia |
| 21 | Jammu & Kashmir | 2.63 | 30.69 | 0.70% |  Nepal |
| 22 | Himachal Pradesh | 2.45 | 28.59 | 0.65% |  Georgia |
| 23 | Goa | 1.14 | 13.30 | 0.35% |  Mali |
| 24 | Andaman & Nicobar Islands | 1.02 | 11.90 | 0.31% |  Malawi |
| 25 | Chandigarh | 0.56 | 6.54 | 0.17% |  Fiji |
| 26 | Sikkim | 0.54 | 6.30 | 0.17% |  Montenegro |
| 27 | Meghalaya | 0.54 | 6.30 | 0.17% | Montenegro |
| 28 | Manipur | 0.52 | 6.07 | 0.16% |  Liberia |
| 29 | Puducherry | 0.45 | 5.25 | 0.14% |  Lesotho |
| 30 | Arunachal Pradesh | 0.44 | 5.13 | 0.14% | Lesotho |
| 31 | Nagaland | 0.43 | 5.02 | 0.13% |  Belize |
| 32 | Mizoram | 0.42 | 4.90 | 0.13% | Belize |
| 33 | Tripura | 0.31 | 3.62 | 0.10% |  Bhutan |
| Total India (2024–25) | 324.11 | 3780.00 | 100% | India | |
As of 2022–23, around 46% of India's workforce was employed in the agricultural sector. This share, which had declined before the pandemic, has risen again in recent years, reaching 46.1% in 2023–24. During the same period, the services sector (excluding agriculture) accounted for about 28.9 percent of employment in 2022–23. The share of manufacturing employment has been more modest 11.4% in 2023–24.[343][344] In 2021–22 and 2022–23,MoSPI reported that the unorganised non-farm sector employed about 19 % of India's workforce while contributing only 6 % of GDP. Other labour-market estimates indicate that the organised sector accounts for roughly 7% of the total workforce, with the remaining 93% in various forms of unorganised employment.[345][346] India is among the countries with the longest working hours globally.[80] Although India's labour productivity is lower than advanced economies, it aligns with levels observed in many emerging Asian countries like China.[347] As of 2023–24, there remains a significant gender gap in employment. In rural areas, 73.5% of working women were self-employed, compared to 59.4% of rural men. In urban areas, 42.3% of women were self-employed versus 39.8% of men. The share of women in regular wage or salaried jobs was only 15.9%. Female labour force participation was 30.5% in rural areas and 20.2% in urban areas, compared to 55.5% and 58.3% for men, respectively. Gender earnings gaps persist: rural female casual labourers earned ₹259 per day, compared to ₹437 per day for rural male casual labourers, although much of this difference may reflect the types of jobs and occupations they engage in rather than direct pay discrimination.[348][349]
Unemployment in India remains a complex challenge despite signs of modest improvement. According to the Periodic Labour Force Survey (PLFS) for 2024, the joblessness rate for persons aged 15 and above dipped slightly to 4.9%, down from 5.0% in 2023, while theLabour force participation rate (LFPR) remained broadly stable at about 56.2%. In April 2025, India's first monthly labour-force survey showed an unemployment rate of 5.1%, with an LFPR of 55.6%. However, urban unemployment continues to be more pronounced, reaching around 6.4% in the October–December 2024 quarter, with notably higher rates among women (8.1%) than men (5.8%).[350][351][352]
Structural issues still persist. A large share of India's workforce is self-employed (57.3%) and many are unpaid helpers in household enterprises (18.3%), which suggestsunder-employment anddisguised employment remain widespread.[353] Critics also point to limitations in how unemployment is measured. For example, some argue that definitions used by the PLFS count even minimal economic activity (such as one hour of work per week) as “employed,” potentially understating the real scale of joblessness.[354]
In response to these challenges, the government has recently approved an Employment-Linked Incentive (ELI) scheme worth ₹1 trillion (≈ $11.7 billion) designed to generate up to 35 million new jobs over two years (2025–2027), by offering wage subsidies to first-time employees and monthly support to employers.[355] Alongside labour-market reforms, India'sProduction-Linked Incentive (PLI) programme, launched in 2020 across 14 sectors with an outlay of ₹1.97 lakh crore (≈ USD 24 billion), has become a major policy tool for employment generation. By March 2025, the schemes had attracted ₹1.76 lakh crore (≈ USD 21 billion) in committed investment and created over 12 lakh (1.2 million) jobs, with government disbursals crossing ₹21,500 crore (≈ USD 2.6 billion).[356][357] Key sectors such aselectronics and components,white goods andautomobile & auto-components have driven much of this expansion.[357] In March 2025, the Indian Cabinet approved a ₹22,919 crore (≈ USD 2.75 billion)Production-Linked Incentive (PLI) scheme for non-semiconductor electronics components, targeting critical items such as multi-layer PCBs, display and camera modules, lithium-ion cells, resistors, capacitors, and inductors. Over its six-year tenure, it is expected to attract ₹59,350 crore (≈ USD 7.1 billion) in investment, generate ₹4.56 lakh crore (≈ USD 54 billion) in production, and create 91,600 direct jobs with additional indirect employment.[358][359] By October 2025, electronics-parts makers had committed more than ₹1.15 lakh crore (≈ USD 13.6 billion) across 249 applications, reflecting strong industry response.[360] India launched India Semiconductor Mission (ISM), in December 2021 with an outlay of ₹76,000 crore (~US$ 9.2 billion), to support semiconductor fabrication, advanced packaging, and chip design. Under this policy, the government expects approximately 85,000 skilled jobs over the long term. It has already secured ₹1.52 lakh crore (~US$ 18.4 billion) in committed investments, with projections of ~25,000 direct advanced-technology jobs and 60,000 indirect jobs.[361][362] This reflects a policy shift toward incentivisingformal employment and reducing dependence on hidden or precarious labour. Nevertheless, persistent gender gaps in participation and employment, especially in urban areas, underline the need for sustained reforms in both educational access and labour regulations.
Child labour is a complex problem that is rooted in poverty. Since the 1990s, the government has implemented a variety of programs to eliminate child labour. These have included setting up schools, launching free school lunch programs, creating special investigation cells, etc.[363][364] Author Sonalde Desai stated that recent studies on child labour in India have found some pockets of industries in which children are employed, but overall, relatively few Indian children are employed. Child labour below the age of 10 is now rare. In the 10–14 age group, the latest surveys find only 2% of children working for wage, while another 9% work within their home or rural farms assisting their parents in times of high work demand such as sowing and harvesting of crops.[365]
According to a July 2024Unicef-Innocenti study, child labour in India has declined substantially over the past decade as school enrollment has expanded nationwide. The report finds that most children now attend school full-time, and child labour is increasingly limited to specific vulnerable groups such as seasonal migrant families. While instances of hazardous or exploitative work still exist, UNICEF notes that these cases are far less common than in previous decades, reflecting the impact of education access, midday-meal schemes, and rural livelihood programmes. The study emphasizes that continued policy attention is needed, but the long-term trend shows steady reductions in children's involvement in labour.[366]
India has the largest diaspora around the world, an estimated 32 million people according to theMinistry of External Affairs (India),[367] many of whom work overseas and remit funds back to their families. The Middle East region is the largest source of employment for expat Indians. The crude oil production and infrastructure industry of Saudi Arabia employs over 2 million expat Indians. Cities such asDubai andAbu Dhabi in United Arab Emirates have employed another 2 million Indians during the construction boom in recent decades.[368] In 2009–10,remittances from Indian migrants overseas stood at₹2.5trillion (equivalent to₹5.6 trillion or US$66 billion in 2023), the highest in the world, but their share in FDI remained low at around 1%.[369]
In India, the Trade Union movement is generally divided on political lines. According to provisional statistics from theMinistry of Labour, trade unions had a combined membership of 24,601,589 in 2002. As of 2008, there are 12 Central Trade Union Organisations (CTUO) recognized by the Ministry of Labour.[370] The forming of these unions was a big deal in India. It led to a big push for more regulatory laws which gave workers a lot more power.[371]
AITUC is the oldest trade union in India. It is a left supported organization.A trade union with nearly 2,000,000 members is the Self Employed Women's Association (SEWA) which protects the rights of Indian women working in the informal economy. In addition to the protection of rights, SEWA educates, mobilizes, finances, and exalts their members' trades.[372] Multiple other organizations represent workers. These organizations are formed upon different political groups. These different groups allow different groups of people with different political views to join a Union.[373]
India'sgross national income per capita had experienced high growth rates since 2002. It has increased from₹19,040 in 2002–03 to₹1,88,892 in 2024, This translates to approximately$2,268.[376][377] India's GNI per capita has seen considerable growth in the last 10 years. While specific average growth rates are not consistently reported, the available data indicates a positive trend. For example, India's GNI per capita increased by 6.72% in 2023, reaching $2,540. In comparison, the per capita income at constant (2011–12) prices increased by 35.12% between 2014–15 and 2022-23. This indicates a positive trend in both nominal and real terms.[378] The estimated GNI per capita for India in 2025 is $2,878 (nominal) at current prices, according to theIMF World Economic Outlook.[379]
According to 2011 census data, India has about 330 million houses and 247 million households. The household size in India has dropped in recent years, the 2011 census reporting 50% of households have four or fewer members, with an average of 4.8 members per household including surviving grandparents.[380][381] These households produced a GDP of about $1.7 trillion.[382] Consumption patterns note: approximately 67% of households use firewood, crop residue, or cow-dung cakes for cooking purposes; 53% do not have sanitation or drainage facilities on premises; 83% have water supply within their premises or 100 metres (330 ft) from their house in urban areas and 500 metres (1,600 ft) from the house in rural areas; 67% of the households have access to electricity; 63% of households have landline or mobile telephone service; 43% have a television; 26% have either a two- or four-wheel motor vehicle. Compared to 2001, these income and consumption trends represent moderate to significant improvements.[380] One report in 2010 claimed that high-income households outnumber low-income households.[383]
_per_capita_in_2018.png)
In May 2014, the World Bank reviewed and proposed revisions to its poverty calculation methodology of 2005 and purchasing-power-parity basis for measuring poverty. According to the revised methodology, the world had 872.3 million people below the new poverty line, of which 179.6 million lived in India. With 17.5% of the total world's population, India had a 20.6% share of the world's poorest in 2013.[384] According to a 2005–2006 survey,[385] India had about 61 million children under the age of 5 who were chronically malnourished. A 2011 UNICEF report stated that between 1990 and 2010, India achieved a 45 percent reduction in mortality rates under the age of 5, and now ranks 46th of 188 countries on this metric.[386]
Since the early 1960s, successive governments have implemented various schemes to alleviate poverty, under central planning, that have met with partial success.[387] In 2005, the government enacted theMahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), guaranteeing 100 days of minimum wage employment to every rural household in all the districts of India.[388] In 2011, it was widely criticised and beset with controversy for corrupt officials, deficit financing as the source of funds, poor quality of infrastructure built under the programme, and unintended destructive effects.[389][390][391] Other studies suggest that the programme has helped reduce rural poverty in some cases.[392][393] Yet other studies report that India's economic growth has been the driver of sustainable employment and poverty reduction, though a sizeable population remains in poverty.[394][395] India lifted 271 million people out of poverty between 2006 and 2016, recording the fastest reductions in the multidimensional poverty index values during the period with strong improvements in areas such as assets, cooking fuel, sanitation, and nutrition.[396]
On the 2019Global Hunger Index Indiaranked 102nd (out of 117 countries) with a score of 30.3, being categorized as 'serious' in severity.[397] In 2024, India ranked 105 (out of 127 countries) with a score of 27.3, indicating an improvement in its hunger situation.[398][399]
According to theWorld Bank’s Spring2025 Poverty and Equity Brief, approximately 171 million people in India moved out of extreme poverty between 2011 and 2023. During this period, the country's poverty rate declined significantly from 16.2% to 2.3%, based on the international poverty line of $2.15 per day.[400]
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| Year | INR₹ per US$ (annual average)[401] | INR₹ perPound(£) (annual average)[402] |
|---|---|---|
| 1947 | 3.31 | 13.33 |
| 1950 | 4.76 | — |
| 1967 | 7.50 | 17.76 |
| 1975 | 9.4058 | — |
| 1980 | 7.88 | — |
| 1985 | 12.364 | — |
| 1987 | — | 21.18 |
| 1990 | 17.4992 | 31.07 |
| 1995 | 32.4198 | 51.17 |
| 2000 | 44.9401 | 67.99 |
| 2005 | 44.1000 | 80.15 |
| 2010 | 45.7393 | 70.65 |
| 2015 | 64.05 | 98.0101 |
| 2016 | 67.09 | 90.72 |
| 2017 | 64.14 | 87.56 |
| 2018 | 69.71 | 98.51 |
| 2019 | 70.394 | 95.06 |
| 2020 | 72.97 | 100.05 |
| 2021 | 74.98 | 101.56 |
| 2022 | 81.35 | 96.23 |
| 2023 | 82.58 | 100.95 |
| 2024 | 83.20 | 104.41 |
| 2025 | 86.46 | 107.38 |
TheIndian rupee (₹) is the onlylegal tender in India, and is also accepted as legal tender in neighbouring Nepal and Bhutan, both of which peg their currency to that of the Indian rupee. The rupee previously was divided into 100 paise, which no longer exist. The highest-denomination banknote was the₹2,000 note until 30 September 2023 after which it was scrapped and ₹500 note became the highest denomination; the lowest-denomination coin in circulation is the ₹1 coin.[404] In 2017, demonetisation was announced in which ₹500 and ₹1000 notes were withdrawn and new ₹500 notes were issued. India's monetary system is managed by the Reserve Bank of India (RBI), the country'scentral bank.[405] Established on 1 April 1935 and nationalised in 1949, the RBI serves as the nation's monetary authority, regulator and supervisor of the monetary system, banker to the government, custodian of foreign exchange reserves, and as an issuer of currency. It is governed by a central board of directors, headed by a governor who is appointed by the Government of India.[406] The benchmarkinterest rates are set by theMonetary Policy Committee.
The rupee was linked to theBritish pound from 1927 to 1946, and then to US dollar until 1975 through afixed exchange rate. It was devalued in September 1975 and the system of fixed par rate was replaced with a basket of four major international currencies: the British pound, US dollar, theJapanese yen and theDeutsche Mark.[407] In 1991, after the collapse of its largest trading partner, the Soviet Union, India faced the major foreign exchange crisis and the rupee was devalued by around 19% in two stages on 1 and 2 July. In 1992, a Liberalized Exchange Rate Mechanism (LERMS) was introduced. Under LERMS, exporters had to surrender 40 percent of their foreign exchange earnings to the RBI at the RBI-determined exchange rate; the remaining 60% could be converted at the market-determined exchange rate. In 1994, the rupee was convertible on the current account, with some capital controls.[408]
After the sharp devaluation in 1991 and transition to current account convertibility in 1994, the value of the rupee has been largely determined by market forces. The rupee has been fairly stable during the decade 2000–2010. In October 2022, rupee touched an all-time low 83.29 to US dollar.[409][410]
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The development of Indian security markets began with the launch of theBombay Stock Exchange (BSE) in July 1875 and theAhmedabad Stock Exchange in 1894. Since then, 22 other exchanges have traded in Indian cities. In 2014, India's stock exchange market became the 10th largest in the world by market capitalisation, just above those of South Korea and Australia.[411] India's two major stock exchanges, BSE and theNational Stock Exchange of India, had a market capitalisation of US$1.71 trillion and US$1.68 trillion as of February 2015,[update] according to theWorld Federation of Exchanges, which grew to $3.36 trillion and $3.31 trillion respectively by September 2021.[412][413]
The initial public offering (IPO) market in India has been small compared to NYSE and NASDAQ, raising US$300 million in 2013 and US$1.4 billion in 2012.Ernst & Young stated[414] that the low IPO activity reflects market conditions, slow government approval processes, and complex regulations. Before 2013, Indian companies were not allowed to list their securities internationally without first completing an IPO in India. In 2013, these security laws were reformed and Indian companies can now choose where they want to list first: overseas, domestically, or both concurrently.[415] Further, security laws have been revised to ease overseas listings of already-listed companies, to increase liquidity for private equity and international investors in Indian companies.[414]
The following table shows the largest trading partners for India in 2024–25 by total trade value in billions ofUSD.[34]
| Country | Export Value | Import Value | Total Trade Value | Balance |
|---|---|---|---|---|
 United States | 88.02 | 43.01 | 130.3 | 45.01 |
| China | 16.66 | 101.75 | 118.41 | -85.09 |
 United Arab Emirates | 35.63 | 48.02 | 83.65 | -12.39 |
| Russia | 4.26 | 61.43 | 65.69 | -57.17 |
 Saudi Arabia | 11.56 | 31.81 | 43.37 | -20.25 |
| Singapore | 14.41 | 21.20 | 35.61 | -6.79 |
 Iraq | 3.35 | 30.00 | 33.35 | -26.65 |
 Indonesia | 5.99 | 23.41 | 29.40 | -17.42 |
 Hong Kong | 8.24 | 20.45 | 28.69 | -12.21 |
| South Korea | 6.42 | 21.14 | 27.56 | -14.72 |
| Year | Total Trade (in USD billion) | Exports (in USD billion) | Imports (in USD billion) | Trade Deficit (in USD billion) |
|---|---|---|---|---|
| 2024 | 1,631.48 | 776.68 | 854.80 | -78.12 |
| 2023 | 1,662.36 | 770.18 | 892.18 | -122.00 |
| 2022[416] | 1,436.59 | 676.53 | 760.06 | -83.53 |
| 2021 | 1,032 | 420 | 612 | -192.00 |
| 2020 | 781.5 | 314.31 | 467.19 | -158.88 |
| 2019 | 844.14 | 330.07 | 514.07 | -184 |
| 2018 | 769.1 | 303.52 | 465.58 | -162.05 |
| 2017 | 660.1 | 275.8 | 384.3 | -108.5 |
| 2016 | 643.3 | 262.3 | 381 | -118.7 |
| 2015 | 758.2 | 310.3 | 447.9 | -137.6 |
| 2014 | 781.1 | 318.2 | 462.9 | -144.7 |
| 2013 | 780.7 | 313.2 | 467.5 | -154.3 |
| 2012 | 798.8 | 298.4 | 500.4 | -202.0 |
| 2011 | 760.8 | 299.4 | 461.4 | -162.0 |
| 2010 | 528.1 | 201.1 | 327.0 | -125.9 |
| 2009 | 442.5 | 168.2 | 274.3 | -106.1 |
| 2008 | 481.9 | 176.4 | 305.5 | -129.1 |
| 2007 | 212.9 | 112.0 | 100.9 | 11.1 |
| 2006 | 189.33 | 76.23 | 113.1 | -36.87 |
| 2005 | 158.51 | 69.18 | 89.33 | -20.15 |
| 2004 | 131.39 | 57.24 | 74.15 | -16.91 |
| 2003 | 109.9 | 48.3 | 61.6 | -13.3 |
| 2002 | 98.3 | 44.5 | 53.8 | -9.3 |
| 2001 | 97 | 42.5 | 54.5 | -12.0 |
| 2000 | 103.9 | 43.1 | 60.8 | -17.7 |
| 1999 | 86.5 | 36.3 | 50.2 | -13.9 |
Until the liberalisation of 1991, India was largely and intentionally isolated from world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, whileforeign direct investment (FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals; these approvals were needed for nearly 60% of new FDI in the industrial sector. The restrictions ensured that FDI averaged only around $200 million annually between 1985 and 1991; a large percentage of the capital flows consisted of foreign aid, commercial borrowing and deposits ofnon-resident Indians.[417] India's exports were stagnant for the first 15 years after independence, due to general neglect of trade policy by the government of that period; imports in the same period, with early industrialisation, consisted predominantly of machinery, raw materials and consumer goods.[418]Since liberalisation, the value of India's international trade has increased sharply,[419] with the contribution of total trade in goods and services to the GDP rising from 16% in 1990–91 to 47% in 2009–10.[420][421] Foreign trade accounted for 48.8% of India's GDP in 2015.[422] Globally, India accounts for 1.44% of exports and 2.12% of imports for merchandise trade and 3.34% of exports and 3.31% of imports for commercial services trade.[421] India's major trading partners are the European Union, China, United States andUnited Arab Emirates.[423] In 2006–07, major export commodities included engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals. Major import commodities included crude oil and related products, machinery, electronic goods, gold and silver.[424] In November 2010, exports increased 22.3% year-on-year to₹851 billion (equivalent to₹1.9 trillion or US$23 billion in 2023), while imports were up 7.5% at₹1.25 trillion (equivalent to₹2.8 trillion or US$33 billion in 2023). The trade deficit for the same month dropped from₹469 billion (equivalent to₹1.2 trillion or US$14 billion in 2023) in 2009 to₹401 billion (equivalent to₹900 billion or US$11 billion in 2023) in 2010.[425]
India is a founding-member ofGeneral Agreement on Tariffs and Trade (GATT) and its successor, the WTO. While participating actively in its general council meetings, India has been crucial in voicing the concerns of thedeveloping world. For instance, India has continued its opposition to the inclusion of labour, environmental issues and othernon-tariff barriers to trade in WTO policies.[426]
India secured 43rd place in competitiveness index.[427]
Since independence, India'sbalance of payments on itscurrent account has been negative. Since economic liberalisation in the 1990s, precipitated by a balance-of-payment crisis, India's exports rose consistently, covering 80.3% of its imports in 2002–03, up from 66.2% in 1990–91.[428] However, the global economic slump followed by a general deceleration in world trade saw the exports as a percentage of imports drop to 61.4% in 2008–09.[429] India's growing oil import bill is seen as the main driver behind the large current account deficit,[430] which rose to $118.7 billion, or 11.11% of GDP, in 2008–09.[431] Between January and October 2010, India imported $82.1 billion worth of crude oil.[430] The Indian economy has run a trade deficit every year from 2002 to 2012, with a merchandise trade deficit of US$189 billion in 2011–12.[432] Its trade with China has the largest deficit, about $31 billion in 2013.[433]
India's reliance on external assistance and concessional debt has decreased since liberalisation of the economy, and thedebt service ratio decreased from 35.3% in 1990–91 to 4.4% in 2008–09.[434] In India,external commercial borrowings (ECBs), or commercial loans from non-resident lenders, are being permitted by the government for providing an additional source of funds to Indian corporates. TheMinistry of Finance monitors and regulates them through ECB policy guidelines issued by the Reserve Bank of India (RBI) under theForeign Exchange Management Act of 1999.[435] India'sforeign exchange reserves have steadily risen from $5.8 billion in March 1991 to ₹38,832.21 billion (US$540 billion) in July 2020.[436][437] In 2012, United Kingdom announced an end to all financial aid to India, citing the growth and robustness of Indian economy.[438][439]
India's current account deficit reached an all-time high in 2013.[440] India has historically funded its current account deficit through borrowings by companies in the overseas markets or remittances by non-resident Indians and portfolio inflows. From April 2016 to January 2017, RBI data showed that, for the first time since 1991, India was funding its deficit through foreign direct investment inflows.The Economic Times noted that the development was "a sign of rising confidence among long-term investors in Prime MinisterNarendra Modi's ability to strengthen the country's economic foundation for sustained growth".[441]
 | This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(October 2015) |
| Rank | Country | Inflows (million US$) | Inflows (%) |
|---|---|---|---|
| 1 | Mauritius | 50,164 | 42.00 |
| 2 | Singapore | 11,275 | 9.00 |
| 3 | US | 8,914 | 7.00 |
| 4 | UK | 6,158 | 5.00 |
| 5 | Netherlands | 4,968 | 4.00 |
As the third-largest economy in the world in PPP terms, India has attractedforeign direct investment (FDI).[443] During the year 2011, FDI inflow into India stood at $36.5 billion, 51.1% higher than the 2010 figure of $24.15 billion. India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI policies[444] were a significant hindrance. Over time, India has adopted a number of FDI reforms.[443] India has a large pool of skilled managerial and technical expertise. The size of themiddle-class population stands at 300 million and represents a growing consumer market.[445]
India liberalised its FDI policy in 2005, allowing up to a 100% FDI stake in ventures. Industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and investment. The upward growth curve of the real-estate sector owes some credit to a booming economy and liberalised FDI regime. In March 2005, the government amended the rules to allow 100% FDI in the construction sector, including built-up infrastructure and construction development projects comprising housing, commercial premises, hospitals, educational institutions, recreational facilities, and city- and regional-level infrastructure.[446] Between 2012 and 2014, India extended these reforms to defence, telecom, oil, retail, aviation, and other sectors.[447][448]
From 2000 to 2010, the country attracted $178 billion as FDI.[449] The inordinately high investment fromMauritius is due to routing of international funds through the country given significant tax advantages – double taxation is avoided due to atax treaty between India and Mauritius, and Mauritius is a capital gainstax haven, effectively creating a zero-taxation FDI channel.[450] FDI accounted for 2.1% of India's GDP in 2015.[422]
As the government has eased 87 foreign investment direct rules across 21 sectors in the last three years, FDI inflows hit $60.1 billion between 2016 and 2017 in India.[451][452]
Since 2000, Indian companies have expanded overseas, investing FDI and creating jobs outside India. From 2006 to 2010, FDI by Indian companies outside India amounted to 1.34 per cent of its GDP.[453] Indian companies have deployed FDI and started operations in United States,[454] Europe and Africa.[455] The Indian conglomerateTata Group is United Kingdom's largest manufacturer and private-sector employer.[456][457]
In 2015, a total of US$68.91 billion was made in remittances to India from other countries, and a total of US$8.476 billion was made in remittances by foreign workers in India to their home countries.UAE, US, andSaudi Arabia were the top sources of remittances to India, while Bangladesh, Pakistan, and Nepal were the top recipients of remittances from India.[458] Remittances to India accounted for 3.32% of the country's GDP in 2015.[422]
Between 1985 and 2018 20,846 deals have been announced in, into (inbound) and out of (outbound) India. This cumulates to a value of US$618 billion. In terms of value, 2010 has been the most active year with deals worth almost 60 bil. USD. Most deals have been conducted in 2007 (1,510).[459]
Here is a list of the top 10 deals with Indian companies participating:
| Acquiror Name | Acquiror Mid Industry | Acquiror Nation | Target Name | Target Mid Industry | Target Nation | Value of Transaction ($mil) |
| Petrol Complex Pte Ltd | Oil & Gas | Singapore | Essar Oil Ltd | Oil & Gas | India | 12,907.25 |
| Vodafone Grp Plc | Wireless | United Kingdom | Hutchison Essar Ltd | Telecommunications Services | India | 12,748.00 |
| Vodafone Grp PLC-Vodafone Asts | Wireless | India | Idea Cellular Ltd-Mobile Bus | Wireless | India | 11,627.32 |
| Bharti Airtel Ltd | Wireless | India | MTN Group Ltd | Wireless | South Africa | 11,387.52 |
| Bharti Airtel Ltd | Wireless | India | Zain Africa BV | Wireless | Nigeria | 10,700.00 |
| BP PLC | Oil & Gas | United Kingdom | Reliance Industries Ltd-21 Oil | Oil & Gas | India | 9,000.00 |
| MTN Group Ltd | Wireless | South Africa | Bharti Airtel Ltd | Wireless | India | 8,775.09 |
| Shareholders | Other Financials | India | Reliance Inds Ltd-Telecom Bus | Telecommunications Services | India | 8,063.01 |
| Oil & Natural Gas Corp Ltd | Oil & Gas | India | Hindustan Petro Corp Ltd | Petrochemicals | India | 5,784.20 |
| Reliance Commun Ventures Ltd | Telecommunications Services | India | Reliance Infocomm Ltd | Telecommunications Services | India | 5,577.18 |
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Corruption has been a pervasive problem in India.[460] A 2005 study byTransparency International (TI) found that more than half of those surveyed had first-hand experience of paying a bribe or peddling influence to get a job done in a public office in the previous year.[461] A follow-up study in 2008 found this rate to be 40 percent.[462] In 2011, TI ranked India at 95th place amongst 183 countries in perceived levels of public sector corruption.[463] By 2016, India saw a reduction in corruption, and its ranking improved to 79th place.[464]
In 1996,red tape, bureaucracy, and theLicence Raj were suggested as a cause for institutionalised corruption and inefficiency.[465] More recent reports[466][467][468] suggest the causes of corruption include excessive regulations and approval requirements, mandated spending programs, monopoly of certain goods and service providers by government-controlled institutions, bureaucracy with discretionary powers, and lack of transparent laws and processes.
Computerisation of services, various central and state vigilance commissions, and the 2005Right to Information Act – which requires government officials to furnish information requested by citizens or face punitive action – have considerably reduced corruption and opened avenues to redress grievances.[461]
In 2011, the Indian government concluded that most spending fails to reach its intended recipients, as the large and inefficient bureaucracy consumes budgets.[469] India's absence rates are among the worst in the world; one study found that 25% of public sector teachers and 40% of government-owned public-sector medical workers could not be found at the workplace.[470][471] Similarly, many issues are facing Indian scientists, with demands for transparency, ameritocratic system, and an overhaul of the bureaucratic agencies that oversee science and technology.[472]
India has anunderground economy, with a 2006 report alleging that India topped the worldwide list forblack money with almost $1,456 billion stashed in Swiss banks. This would amount to 13 times the country's total external debt.[473][474] These allegations have been denied by theSwiss Banking Association. James Nason, the Head of International Communications for the Swiss Banking Association, suggested "The (black money) figures were rapidly picked up in the Indian media and in Indian opposition circles, and circulated as gospel truth. However, this story was a complete fabrication. The Swiss Bankers Association never published such a report. Anyone claiming to have such figures (for India) should be forced to identify their source and explain the methodology used to produce them."[475][476]A Step was taken by Prime Minister Modi, on 8 November 2016, involved the demonetization of all 500 and 1000 rupee bank notes (replaced by new 500 and 2000 rupee notes) to return black money into the economy followed by criticism that the measure was deemed ineffective by economists and negatively affected the poorest people of India. Thisdemonetisation together with the introduction of thegoods and services tax(GST) is believed to be responsible for the slowdown in growth.[477]
India has made progress in increasing the primary education attendance rate and expandingliteracy to approximately three-fourths of the population.[478] India's literacy rate had grown from 52.2% in 1991 to 74.04% in 2011. The right to education at the elementary level has been made one of the fundamental rights under the Eighty-Sixth Amendment of 2002, and legislation has been enacted to further the objective of providing free education to all children.[479] However, the literacy rate of 74% is lower than the worldwide average, and the country suffers from a high drop-out rate.[480] Literacy rates and educational opportunities vary by region, gender, urban and rural areas, and among different social groups.[481][482]
Poverty rates in India's poorest states are three to four times higher than those in the more advanced states. While India's average annual per capita income was $1,410 in 2011 – placing it among the poorest of the world's middle-income countries – it was just $436 in Uttar Pradesh (which has more people than Brazil) and only $294 in Bihar, one of India's poorest states.
— World Bank: India Country Overview 2013[483]
A critical problem facing India's economy is the sharp and growing regional variations among India's different states and territories in terms of poverty, availability of infrastructure, and socio-economic development.[484] Six low-income states –Assam, Chhattisgarh,Nagaland, Madhya Pradesh,Odisha, andUttar Pradesh – are home to more than one-third of India's population.[485] Severe disparities exist among states in terms of income, literacy rates, life expectancy, and living conditions.[486] The four states of Maharashtra, Tamil Nadu, Gujarat and Karnataka alone are projected to account for almost 50% of India's GDP by 2030; the fiveSouth Indian states are projected to contribute 35% of India's GDP by 2030 despite currently having 20% of India's population.[487]
The five-year plans, especially in the pre-liberalisation era, attempted to reduce regional disparities by encouraging industrial development in the interior regions and distributing industries across states. The results have been discouraging as these measures increased inefficiency and hampered effective industrial growth.[488] The more advanced states have been better placed to benefit from liberalisation, with well-developed infrastructure and an educated and skilled workforce, which attract the manufacturing and service sectors. Governments of less-advanced states have tried to reduce disparities by offering tax holidays and cheap land and focused on sectors like tourism, which can develop faster than other sectors.[489][490] India's incomeGini coefficient is 33.9, according to the United Nations Development Programme (UNDP), indicating overall income distribution to be more uniform than East Asia, Latin America, and Africa.[14] According to a 2021 report by thePew Research Center, India has roughly 1.2 billion lower-income individuals, 66 million middle-income individuals, 16 million upper-middle-income individuals, and 2 million in the high-income group.[491] As perThe Economist, 78 million of India's population are considered middle class as of 2017, if defined using the cutoff of those making more than $10 per day, a standard used by the India'sNational Council of Applied Economic Research.[492]
There is a continuing debate on whether India's economic expansion has been pro-poor or anti-poor.[493] Studies suggest that urban economic growth has become less pro-poor since the1991 economic reforms.[493][494]
Several banks including State Bank of India, Axis Bank, ICICI Bank and HDFC Bank have taken the lead in funding green projects even as the Reserve Bank of India comes up with norms for lenders to disclose their actions on climate risk. RBI in an earlier report in 2022, had said that climate change would require "intensive capital mobilisation" for that India needs $17.77 trillion.[495]
The RBI recommends that regulated entities rely upon the Task Force on Climate-related Financial Disclosures (TCFD) framework, the most prominent climate disclosure framework globally, at least at the initial stage.[496]
India is home to 75 per cent of the world's wild tiger population. The big cats like lion, tiger, leopard, cheetah, snow leopard, jaguar and puma were on the brink of extinction. With hunting and encroachment, their numbers dropped to a mere 20. Efforts to save the lion started before Independence but it was in 1965 that the Indian Forest Service stepped in to set up a conservation programme. Researchers believe a combination of factors is driving the unprecedented migration in tigers. Rising temperatures due to climate change are making the lower foothills less hospitable.[497]
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{{cite web}}:|first= has generic name (help){{cite book}}:ISBN / Date incompatibility (help)... The Persians have very little maritime strength ... their ship carpenters on the Caspian were mostly Indians ... there is a little temple, in which the Indians now worship
... The Russian merchant, F.A. Kotov ... saw in Isfahan in 1623, both Hindus and Muslims, as Multanis.
... George Forster ... On the 31st of March, I visited the Atashghah or place of fire; and on making myself known to the Hindoo mendicants, who resided there, I was received among these sons of Brihma as a brother[permanent dead link]
... A society ofMoultan Hindoos, which has long been established in Baku, contributes largely to the circulation of its commerce; and with the Armenians, they may be accounted the principal merchants of Shirwan ...
... Six or 7 miles southeast is Surakhani, the location of a very ancient monastery of the fire-worshippers of India ...
{{cite news}}:|last= has generic name (help)The poor live on $2 or less daily, low income on $2.01-$10, middle income on $10.01-$20, upper-middle income on $20.01-$50 and high income on more than $50. All dollar figures are expressed in 2011 prices andpurchasing power parity dollars, currency exchange rates adjusted for differences in the prices of goods and services across countries.
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