An Economy

An economy is the result of a set of processes that involves its culture, values, education,
technological evolution, history, social organization, political structure and legal systems, as well
as its geography, natural resource endowment, and ecology, as main factors. These factors give
context, content, and set the conditions and parameters in which an economy functions. In other
words, the economic domain is a social domain of human practices and transactions. It does not
stand alone. Whereas there are various suffix given to the economy which are as follows:

In today’s modern world New Economy is a term referred to the whole emerging ecosystem of
Economy where new standards and practices were introduced, usually as a result of
Technological Innovations or Advancements.

About Indian Economy

The economy of India could well be described by two words – developing and mixed.
Developing economy means that it is still developing and not as affluent as the economy of some
of the developed western countries. Mixed economy on the other hand refers to a capitalist
economy as well as an amalgamation of private and public enterprises.It is the world's seventh
largest economy by nominal Gross Domestic Product (GDP) and the third-largest by purchasing
power parity (PPP). Indian economy is growing at a good rate. The agricultural, industrial as
well as service sector in our country is expanding and improving with time and thus contributing
to its economic growth.However, just like other developing countries, the economy of India is
also faced with numerous challenges. Some of the major challenges faced by the Indian economy
are corruption, illiteracy and huge cultural, social and economical disparity among its states.

Facts about Indian Economy:

India is a developing + mixed market economy. The Indian economy has a good position
because of its GDP and PPP in the world. As envisioned by our Prime Minister Shri Narendra
Modi that the country is poised to become US$ 5 trillion economy by 2025 that is why our
country requires securing 9 percent average annual economic growth rate till 2025. At present,
India ranks 139th in per capita GDP (nominal) and 119th in per capita GDP (PPP) as of
2018.After the 1991 economic liberalization India achieved 6%-7% average GDP growth
annually. Since 2014, India's economy has been the world's fastest growing major
economy, surpassing China.

The long-term growth perspective of the Indian economy is positive due to its young population,
English proficiency, corresponding low dependency ratio, healthy savings plus investment rates,
and increasing integration into the global economy. India topped the World Bank's growth
outlook for the first time in fiscal year 2015–16, during which the economy grew 7.6%. Despite
previous reforms, economic growth is still significantly slowed by bureaucracy, poor
infrastructure, and inflexible labor laws (especially the inability to lay off workers in a business
slowdown).

India has one of the fastest growing service sectors in the world with an annual growth rate
above 9% since 2001, which contributed to 57% of GDP in 2012–13. India has become a major
exporter of IT services, Business Process Outsourcing (BPO) services, and software services
with $177 billion revenue in FY 2019.The IT industry continues to be the largest private-sector
employer in India. India is the second-largest start-up hub in the world with over 3,100
technology start-ups in 2018–19.The Indian automobile industry is one of the largest in the world
with an annual production of 21.48 million vehicles (mostly two and three-wheelers) in 2013–
14.India had $600 billion worth of retail marketin 2015 and one of world's fastest growing e-
commerce markets.

GDP growth of India:

Following are the GDP estimates by the World Bank for the Indian Economy:

Real GDP growth or Gross Domestic Product (GDP) growth of India at constant (2011-12)
prices in the year 2018-19 is estimated at 6.81 percent as compared to the growth rate of 7.17
percent in 2017-18. The growth in gross domestic product was slowest since 2014-15. The
previous low was 6.39% in 2013-14.

GVA growth rates of Agriculture & allied, Industry, and Services sector are 2.92%, 6.86%, and
7.53% respectively. India has registered highest growth of 8.74% in 'Construction' sector and
lowest 1.34% in 'Mining & quarrying' sector. Overall GVA growth at constant prices is
6.63%.At current prices, GDP growth rates for year 2018-19 is 11.20%. GVA growth rates of
Agriculture & allied, Industry, and Services sector are 3.96%, 12.24%, and 12.76%, respectively.
According to IMF World Economic Outlook (April-2019), GDP growth rate of India in 2019 is
projected at 7.3% and India is 8th fastest growing nation of the world just behind
Bangladesh. Average growth rate from 2013-17 is estimated at 7.149%, that is 9th highest.In
previous methodology, Average growth rate from 1951 to 2014 stands at 4.96%, reaching an all
time high of 10.16% in 1988-89 and a record low of -5.2% in the 1979-80. In 4 years, Growth
was negative.

GDP contribution for Indian economy’s Rank worldwide:

PPP contribution for Indian economy’s Rank worldwide:

GDP is the total market value of all final goods and services produced in a country in a given
year. Each country reports its data in its own currency. To compare the data, each country's
statistics must be converted into a common currency. Two methods are used for conversion,
nominal and purchasing power parity (PPP). In purchasing power parity (PPP) exchange rate —
the rate at which the currency of one country would have to be converted into that of another
country to buy the same amount of goods and services in each country. IMF explains, "If a
hamburger is selling in London for £2 and in New York for $4, this would imply a PPP exchange
rate of 1 pound to 2 U.S. dollars".

On the PPP basis, China is world's largest economy in 2018. Total wealth of china is estimated at
25.3 trillion international dollar. China is followed by United States with figure 19.4 trillion.
India, which is 7th largest economy in nominal terms, is at third place.Tuvalu is the world's
smallest national economy with a GDP (PPP) of approximately Int. $44 million.

At current prices, GDP of world in 2018, is expanded by Int. $7,747 bn. China is the largest
contributor of global GDP growth. GDP of China has grown by Int. $2,105 billion in 2018.
United States is second largest contributor with Int. $1,028 billion. With data Int. $928 billion
India is third largest contributor in the world.