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Economy of India facts for kids

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Bombay Stock Exchange 3
The Bombay Stock Exchange in Mumbai is Asia's oldest and India's largest stock exchange.

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.

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Kids robot.svg In Spanish: Economía de la India para niños

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