India’s Growing Economy

India has one of the fastest growing economies in the world. To further understand its huge economic growth, it is important to understand such statistics like Gross Domestic Product and other factors which have helped India build its economy.

India has one of the largest populations in the world at 1.65 billion people. The enormous work force has helped make India into one of the nation’s leading manufacturers. The ethnic makeup of India is 81.3% Hindu, 12% Muslim and 2.3% Catholic. Since 1990, economic growth has risen by 6% and poverty has decreased by 10%. India has become a maor exporter of software. This has also led to an increase in literacy and more people have become software workers.

Literacy has increased in India. In 1991 literacy rates were at 52.2% and in 2001 they increasd to 64.8%. Eacho f their provinces have their strength and some have a lot of weaknesses. Punjab is the top province for agriculture, consumer markets and infrastructure.

India has also gone through a series of 5 year plans. In 1991 trhey had their 8th 5 year plan under the Rao administration. The Rupee was devalued and trade barriers were reduced, licensing requirements were dismantled. Reforms were followed in the financial sector and tax systems.

China and India have some main differences. The main difference in the economies is that China went through agriculture and industrial growth India on the other hand leap frogged this stage into post industrialization without fully industrializing first.

India needs reform in their physical infrastructure, low savings rate, and growth in literacy and stopping the spread of AIDS.