The document provides an overview of the history and development of the Indian economy from independence in 1947 to present day. It discusses how India transformed from a primarily agricultural economy to one with major industries and sectors like manufacturing, services, and technology. The economy has grown significantly and become one of the fastest growing major economies in the world, with a large middle class and reductions in poverty and illiteracy rates. However, issues around unemployment, infrastructure, and income inequality still remain.

1. The Explosive Story of Indian
Economy
Consumption led rather than export led, growth with democracy,
growth in services rather than manufacturing, entrepreneurial
rather than Government led
Contents
 Introduction
 History
 Features
 Sectors
 Positive Aspects of Indian Economy
 Developmental Issues
 Approach to Economic Development
 Effect of Recession on India
 Conclusion
History of Independent Indian Economy
 Steel, mining, machine tools, water, telecommunications, insurance, and
electrical plants, among other industries, were effectively nationalized
in the mid-1950s.
 Economy transformed from primarily agriculture, forestry, fishing,
and textile manufacturing in 1947 to major heavy
industry, transportation, and telecommunications industries by late 1970s
 According to economic historian ‘Angus Maddison’ in his book The
World Economy: A Millennial Perspective, India had the world's largest
economy from the 1st century to 11th century, with a 32.9% share of
world GDP in the 1st century to 28.9% in 1000 CE
 The Arthasastra is one of the most important ancient texts on
economics, politics and administration
Features of Indian Economy

2. • Low Per Capita Income
• Low Standard of Living
• High Poverty
• Inequal Income Distribution
• Dominance of Agriculture
• Existence of Rich Resources
• Inadequate Capital Formation
• Unemployment and Underemployment
• Technological Backwardness
• Infrastructural Inadequacies
• Dualistic Economy
Sectors
• Agriculture
• Industries
• Finance
• Services
• Natural Resources
Agriculture
 Agriculture is the mainstay of the Indian economy
 It is the means of livelihood of almost two thirds of the work force
in the country
 Agriculture accounts for approx 18% of India's GDP
 Largest producer in the world of milk, cashew nuts, coconuts, tea,
ginger, turmeric and black pepper
 World's largest cattle population
 Second largest producer of wheat, rice, sugar, groundnut and inland
fish
 Third largest producer of tobacco India accounts for 10% of the
world fruit production with first rank in the production of banana and
sapota

3. Industries
o Industry accounts for 27.6% of the GDP and employ 17% of the total
workforce
o one-third of the industrial labour force is engaged in simple household
manufacturing
o India is 16th in the world in terms of nominal factory output
o Textile manufacturing is the second largest source for employment after
agriculture and accounts for 26% of
manufacturing output
o Tirupur has gained universal recognition as the leading source of hosiery,
knitted garments, casual wear and sportswear
o Dharavi slum in Mumbai has gained fame for leather products
Finance
 Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed
by six others in 1980
 Since then, the number of bank branches has increased from 10,120
in 1969 to 1,15,910 in 2008
 Currently, India has 88 scheduled commercial banks (SCBs) — 28
public sector banks, 29 private banks and 31 foreign bank
 They have a combined network of over 53,000 branches and 17,000
ATMs
 The 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
 The BSE Sensex is generally regarded as the most popular and
precise barometer of the Indian stock markets
Services
 India is fifteenth in services output The sector increased its
contribution to Indian’s GDP from 1.2% in 1998 to 7.7% in 2017.
According to NASSCOM, the sector aggregate revenues of US Dollar
160 billion in 2017
 Organized retail such supermarkets accounts for just 4% of the
market as of 2008
 Tourism in India is relatively undeveloped, but growing at double
digits. Some hospitals woo medical tourism.

4. Natural Resources
 India's total cultivable area is 1,269,219 km² (56.78% of total land
area), which is decreasing due to constant
 pressure from an ever growing population and increased urbanisation
 India has a total water surface area of 314,400 km² and receives an
average annual rainfall of 1,100 mm. Irrigation accounts for 92% of the
water utilisation, and comprised 380 km² in 1974, and is
 expected to rise to 1,050 km² by 2025
 In 2018, India had the world's second largest fishing industry
 India's oil reserves, found in Bombay High off the coast of
Maharashtra, Gujarat, Rajasthan and in eastern Assam meet 25% of
the country's demand
Some Encouraging Statistics..
• India is the fastest growing major economy
• India is already the third largest economy in the world at PPP
• India has seen a huge amount of foreign direct investment in the country,
totaling 49 billion dollars in 2019 and is said to be one of the “preferred
options” for FDI
• India’s poverty level is decreasing by 10% annually
• Indian companies have gone on a buying rampage, with Tata Steel
acquiring Corus, Mittal buying Arcelor and Tata Motor buying Jaguar and
Land Rover from Ford.
• Every year India’s middle class is increased by 40,000,000 new members
which
shows that the wealth is truly entering society
• The NSE - National Stock Exchange’s value has been consistently rising,
currently worth 2.27 trillion dollars, making it the world’s 11th
largest stock
exchange as of April 2018. And the largest in South East Asia
• Unemployment has dropped by 2% annually, and illiteracy and mortality
rates have also been falling, indicating that India is not only growing but
developing
too.
Bet You Didn’t Know
 India is one of only three countries that makes supercomputers (the
US and Japan are the other two).
 India is one of six countries that launches satellites.

5.  The Bombay stock exchange lists more than 6,000 companies. Only the
NYSE has more. 11 Indian companies are listed on the NYSE; and
NASDAQ.
 By volume of pills produced, the Indian pharmaceutical industry is the
world's second largest after China.
 India has the second largest community of software developers, after
the U.S.
 India has the second largest network of paved highways, after the
U.S.
 India is the world's largest producer of milk, and among the top five
producers of sugar, cotton, tea, coffee, spices, rubber, silk, and fish.
 100 of the Fortune 500 companies have R&D facilities in India