Economy of India facts for kids
The Economy of India is one of the biggest in the world. It's ranked fifth globally based on its GDP (which means the total value of all goods and services made in a country in one year). India's GDP is about $2.94 trillion (U.S.). If you look at it using purchasing power parity (PPP), which shows how much money can buy in India compared to other countries, its economy is the third largest, worth about $10.51 trillion U.S. However, because India has a very large population, the average income per person was around $6,209 (using PPP) per year in 2015.
India's economy includes many different areas like agriculture, making handicrafts, various industries, and a lot of services. Today, the service sector (like IT, banking, and tourism) is the main reason India's economy is growing so fast. Even so, about two-thirds of Indian people still make their living directly or indirectly from farming. Recently, because many people in India are well-educated and can speak English, India has become a leader in information technology.
For most of its history after becoming independent, India had strong government control over many parts of its economy. This included areas like telecommunications (sending messages over long distances), banking, and foreign direct investment (money invested by companies from other countries). But since the early 1990s, India has slowly started to open up its markets. This means the government has reduced its control over foreign trade and investments. This change was started by Manmohan Singh when P.V. Narasimha Rao was the leader. Since then, the Indian economy has grown very quickly.
India still faces some social and economic challenges. These include a growing population, poverty, a lack of infrastructure (like good roads, buildings, and power), and increasing unemployment. Even though poverty has gone down by 10% since the 1980s, about a quarter of India's citizens still struggle to afford enough food.
Images for kids
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Estimated GDP per capita of India and United Kingdom during 1700–1950 in 1990 US$ 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.
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Rice fields near Puri, Odisha on India's east coast.
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India exports more than 100,000 tonnes of processed cashew kernels every year. There are more than 600 cashew processing units in Kollam alone.
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Many famous stones such as the Koh-i-Noor and Hope Diamond (above), came from India.
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Visakhapatnam Port in the Bay of Bengal.
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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.
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Durgapur Steel plant, West Bengal.
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Air India became the first Asian carrier to induct a jet aircraft, with the Boeing 707–420 Gauri Shankar.
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State Bank of India is the largest bank in India.
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Infosys Media Centre in Bangalore, India. Infosys is one of the largest Indian IT companies.
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Bactrian camel ride at Nubra Valley in Ladakh.
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Poomparai village in the Hilly region of Kodaikanal hill station
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The Reserve Bank of India's headquarters in Mumbai, India.
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Gini index of India compared to other countries per World Bank data tables as of 2018[update]
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University of Calcutta, established in 1857, was the first multidisciplinary and secular Western-style institution in Asia.
See also
In Spanish: Economía de la India para niños