The Economy of India is the eleventh largest in the world by nominalGDP and the third largest by purchasing power parity (PPP). The countryis one of the G-20 major economies and a member of BRICS. In 2011, thecountrys per capita income stood at $3,694 IMF, 129th in the world, thusmaking a lower-middle income economy.After the independence-era Indian economy (before and a little after 1947)was inspired by the Soviet model of economic development, with a largepublic sector, high import duties combined with interventionist policies,leading to massive inefficiencies and widespread corruption. However,later on India adopted free market principles and liberalized its economy tointernational trade under the guidance of Manmohan Singh, who then wasthe Finance Minister of India under the leadership of P.V.NarasimhaRao the then Prime Minister. Following these strong economic reforms, thecountrys economic growth progressed at a rapid pace with very high ratesof growth and large increases in the incomes of people.
StrengthsHuge pool of labour force.High percentage of cultivable land.Diversified nature of the economy .Huge English speaking population, availability of skilled manpower .Stable economy, does not get affected by external changes.Extensive higher education system, third largest reservoir of engineers .High growth rate of economy .Rapid growth of IT and BPO sector bringing valuable foreign exchange.Abundance of natural resources .
WeaknessVery high percentage of workforce involved in agriculture whichcontributes only 23% of GDP .Around a quarter of a population below the poverty line .High unemployment rate .Stark inequality in prevailing socio economic conditions .Poor infrastructural facilities .Low productivity .Huge population leading to scarcity of resources .Low level of mechanization .Low literacy rates.Unequal distribution of wealth .Rural-urban divide, leading to inequality in living standards .
OpportunitiesScope for entry of private firms in various sectors for business .Inflow of Foreign Direct Investment is likely to increase in many sectors .Huge foreign exchange earning prospect in IT and ITES sector .Investment in R&D, engineering design .Area of biotechnology .Huge population of Indian Diaspora in foreign countries (NRIs) .Area of Infrastructure .Huge domestic market: Opportunity for MNCs for sales .Huge natural gas deposits found in India, natural gas as a fuel hastremendous opportunities .Vast forest area and diverse wildlife .Huge agricultural resources, fishing, plantation crops, livestock .
ThreatsGlobal economy recession/slowdownHigh fiscal deficitThreat of government intervention in some statesVolatility in crude oil prices across the worldGrowing Import billPopulation explosion, rate of growth of population still highAgriculture excessively dependent on monsoons