Economy of India Facts for Kids

The Bombay Stock Exchange, in Mumbai, is Asia's oldest and India's largest stock exchange.

The Economy of India is the fifth largest in the world with a GDP (a year's goods and services) of $2.94 trillion (U.S.). If you consider PPP (purchasing power parity: how much that money can buy in India compared to other countries), the economy is third largest (worth $10.51 trillion U.S.). However, due to India's huge population, the economy was still only $6,209 (considering PPP) per person per year in 2015.

India's economy includes agriculture, handicrafts, industries, and a lot of services. The service sector is the main source of economic growth in India today, though two-thirds of Indian people earn their living directly or indirectly through agriculture. In recent times, due to its many well-educated people who can speak English, India became a pioneer in information technology.

For most of India's independent history, it had strict government controls in many areas such as telecommunications (communication over long distances), banking and foreign direct investment. Since the early 1990s, India has slowly opened up its markets by reducing government control on foreign trade and investment.This was started by Manmohan Singh under the leadership of P.V.Narasimha Rao.From then, the Indian Economy grew at a rapid pace.

The social and economic problems India faces are the increasing population, poverty, lack of infrastructure (buildings, roads, etc.) and growing unemployment. Although poverty has gone down 10% since the 1980s, a quarter of India's citizens still cannot pay for enough food.

Images for kids

Mughal princes wearing muslin robes in 1665 CE.
The global contribution to world's GDP by major economies from 1 CE to 2003 CE according to Angus Maddison's estimates. Up until the 18th century, China and India were the two largest economies by GDP output.
Estimated GDP per capita of India and United Kingdom during 1700–1950 in 1990 US$ according to Maddison. However, Maddison's estimates for 18th-century India have been criticized as gross underestimates, Bairoch estimates India had a higher GDP per capita in the 18th century, and Parthasarathi's findings show higher real wages in 18th-century Bengal and Mysore. But there is consensus that India's per capita GDP and income stagnated during the colonial era, starting in the late 18th century.
Change in per capita GDP of India, 1820–2015. Figures are inflation-adjusted to 1990 International Geary-Khamis dollars.
GDP grows exponentially, almost doubling every five years.
Indian GDP growth rate from 1985 to 2016 in red, compared to that of China in green.
Rice fields near Puri, Odisha on India's east coast.
India exports more than 100,000 tonnes of processed cashew kernels every year. There are more than 600 cashew processing units in Kollam alone.
sugarcane weighing at a cooperative sugarmill in Maharashtra
Nuclear capable Agni-II ballistic missile. Since May 1998, India declared itself to be a full-fledged nuclear state.
NTPC's Ramagudam Super Thermal Power Station
Mahindra XUV500 is made in India
Many famous stones such as the Koh-i-Noor and Hope Diamond (above), came from India.
Visakhapatnam Port in the Bay of Bengal.
Indian coal production is the 3rd highest in the world according to the 2008 Indian Ministry of Mines estimates. Shown above is a coal mine in Jharkhand.
Durgapur Steel plant, West Bengal.
Hyderabad is a major IT services centre.
Air India became the first Asian carrier to induct a jet aircraft, with the Boeing 707–420 Gauri Shankar.
State Bank of India is the largest bank in India.
Infosys Media Centre in Bangalore, India. Infosys is one of the largest Indian IT companies.
Tidel Park, the then largest IT park in Asia when it was opened in 2000.
Neighbourhood grocery shops handle much of retail trade in India.
Kerala became a major tourist destination after the state government promoted its natural coastline.
Bactrian camel ride at Nubra Valley in Ladakh.
Poomparai village in the Hilly region of Kodaikanal hill station
INSAT-1B satellite: Broadcasting sector in India is highly dependent on INSAT system.
A map showing the global distribution of Indian exports in 2006 as a percentage of the top market (US at $20.9 billion).
Cumulative current account balance 1980–2008 based on IMF data
The Reserve Bank of India's headquarters in Mumbai, India.
India vs World by Nominal GDP per capita in 2020
Gini index of India compared to other countries per World Bank data tables as of 2018^[update]
Countries by nominal GNI per capita according to the Atlas method (2016)
Share of population in extreme poverty, 1981 to 2017
University of Calcutta, established in 1857, was the first multidisciplinary and secular Western-style institution in Asia.
Percent labour employment in India by economic sectors (2010).
Contribution to GDP of India by economic sectors of the Indian economy have evolved between 1951 and 2013, as its economy has diversified and developed.

Economy of India facts for kids

Images for kids

See also