Economic Development in India mostly followed the socialist perspective of politicians for most of its time after independence in 1947. The country’s per capita income increased at an annual rate of one percent in the first thirty years post-independence. But after 1980, India gradually started to open its economy through economic liberalization. After more reforms and renewals in early 90s and in early 2000s, India completely became an open economy.
In the late 2000s, the growth rate of India went past seven and a half percent which meant that the country’s average income would increase by a complete hundred percent. According to the International Monetary Fund if India pushes for more market reforms, then the country’s growth rate could even go past double digits. Currently India is the fifth largest economy after USA, China, Japan and Germany and it is the third largest by Purchasing Power Parity adjusted exchange currency (PPP).
The main reason for India ‘s economic growth is proliferation of the services that have grown on such a fast scale than growth in other sectors. In the beginning of 2000, India ‘s Gross Domestic Product was close to fifty crore dollars and now it has surpassed 2.5 lakh crore dollars.
India’s macroeconomic performance is looking good but is not enough for the improvement of standard of living of the citizens. India ‘s poverty rate may have gone low after the 90s’ reforms but the growth in human development has not been up to the mark.