Asia's Third Biggest Economy: Going for Growth
In the last decade, India’s economy expanded at an average annual rate of 7.6 percent, placing it in the top 10 of the world’s fastest growing nations.
India is currently one of the world's most attractive investment destinations. With the opening up of foreign direct investment in several sectors, the country is an eye-catching destination for overseas investors.
In 2014, India's stock exchange market became the 10th largest in the world by market capitalization, just above those of South Korea and Australia. India's two major stock exchanges, Bombay Stock Exchange and National Stock Exchange of India, had a market capitalization of $1.4997 trillion and $1.4722 trillion respectively as of June 2014, according to the World Federation of Exchanges.
Historic changes are unfolding, unleashing a host of new opportunities to forge a 21st-century nation. India will soon have the largest and youngest workforce the world has ever seen.
With 1.2 billion people and the world’s fourth-largest economy, India’s recent growth and development has been one of the most significant achievements of our times. Over the six and half decades since independence, the country has brought about a landmark agricultural revolution that has transformed the nation from chronic dependence on grain imports into a global agricultural powerhouse that is now a net exporter of food. Progress on human development has been remarkable; life expectancy more than doubled from 31 years in 1947 to 65 years in 2012 and adult literacy more than quadrupled, from 18 percent in 1951 to 74 percent in 2011. Health conditions have improved, and a sizeable middle class has emerged.
India is now home to globally recognized companies in pharmaceuticals and steel and information and space technologies, and a growing voice on the international stage that is more in keeping with its enormous size and potential.
Growth has been in double digits for some states—well above the all-India average
Some of India’s low-income states grew at a record pace, with Bihar (one of the poorest states) outperforming even the most advanced states. Madhya Pradesh, Rajasthan, and Uttar Pradesh—all low-income and highly populous states—have also grown rapidly, with their gross state domestic product growing significantly faster than India’s overall GDP.
Source: World Bank
The diverse experience of Indian states is revealing of what could be accomplished, and what would be realistic — a future of high growth and poverty reduction.
Before the industrial revolution India was one of world’s wealthiest countries, accounting for more than a quarter of global GDP, but by the time of Independence in 1947 its economy was universally stagnant. Since then the country has emerged out of the low “Hindu rate of growth,” and has the potential to become a global economic powerhouse once again.
India has been an important source of learning and innovation for other countries — developing and industrialized alike. There is growing demand to learn from India’s thematically diverse and tested development practices, and its experience in agriculture, education and skills development, health care, information and communication technology, inclusive business models, public-private partnerships, and its framework for private sector–led growth.
Long-term Benefits Combined with Real Growth
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