Indian model of Economy & Business Management
By
Economy of India
The Economy of India is a middle income developing
market economy.It is the world's fifth-largest economy
by nominal GDP and the third-largest by purchasing
power parity (PPP). According to the International
Monetary Fund (IMF), on a per capita income basis, India
ranked 142nd by GDP (nominal) and 128th by GDP (PPP).
From independence in 1947 until 1991, successive
governments promoted protectionist economic policies,
with extensive state intervention and economic
regulation.
Historical Development of India's Economy
In 1947, after gaining independence from Britain, India formed a
centrally-planned economy (also known as a command economy).
With a centrally planned economy, the government makes the
majority of economic decisions regarding the manufacturing and
the distribution of products.
Major Sector In The Indian Economy
 Agricultural Sector
Agriculture, once India’s main source of revenue and income,
has since fallen to approximately 18.32% of the country’s GDP,
as of 2020.7 However, analysts have pointed out that this fall
should not be equated with a decrease in production.
Industrial Production
India produces a large supply of the world’s pharmaceuticals as
well as billions of dollars worth of cars, motorcycles, tools,
tractors, machinery, and forged steel
IT & Outsourcing
Among the leading services industries in the country are
telecommunications, IT, and software, and the workers are
employed by both domestic and international companies
including Intel , Texas Instruments , Yahoo , Meta —formerly
Facebook, Google , and Microsoft.
Retial Services
The retail sector in India is huge. But it's not just apparel,
electronics, or traditional consumer retail that is booming;
agricultural retail, which is important in an inflation-conscious
country like India, is also significant .

Other Services
Other parts of India’s service industry include electricity production
and tourism. The country is largely dependent on fossil fuels oil,
gas, and coal but it is increasingly adding capacity to produce
hydroelectricity, wind, solar, and nuclear power.
Economic issues
 Corruption
Corruption has been a pervasive problem in India.A 2005 study by Transparency
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.A follow-up study in 2008 found this rate to be 40 percent. In
2011, TI ranked India at 95th place amongst 183 countries in perceived levels of
public sector corruption. By 2016, India saw a reduction in corruption, and its ranking
improved to 79th place.
 Education
India has made progress in increasing the primary education attendance
rate and expanding literacy to approximately three-fourths of the
population. 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
 Economic Disparities
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. Six low-income states – Assam, Chhattisgarh, Nagaland,
Madhya Pradesh, Odisha, and Uttar Pradesh – are home to more than
one-third of India's population. Severe disparities exist among states in
terms of income, literacy rates, life expectancy, and living conditions
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