Essay on Indian Economy for Class 10, 12, Mains Exam (UPSC, PSC, SSC)
Indian Economy Essay : India is known for the prevalence of a mixed economy, which integrates both the aspects of socialism and capitalism. This country comprises both the public and private sectors wherein the public sector works towards the welfare of the citizens and the private sector tends to derive the maximum profit by operating its businesses. Both these entities exist simultaneously and help in accelerating the growth of the economy. India’s mixed economy is marked by several features such as encouraging free economic activities, promoting the welfare of the citizens, price regulation and economic planning.
Gross Domestic Product
The financial measure of the market value of the goods and services is denoted by the Gross Domestic Product. It is regarded as the main growth rate of the country. GDP can be evaluated with the help of three methods. These are the production approach, expenditure approach and income approach. In India, the GDP rate of the country is falling gradually. The decline of the economy is due to factors. The first reason is demonetisation and the incorporation of GST. This has drastically affected the economic condition of the country. As per the latest central statistics, the various sectors of the economy such as mining, communication, trade, transport, manufacturing, real estate,hotel and trade. Most importantly, the manufacturing sector is worst affected by monetisation. Another factor is the incorporation of GST which has increased the price of the necessities needed by human beings. India’s current rate of GDP has slumped to 6.5 per cent, from the previous estimate of 7.5 per cent. It has also been noted by international financial institutions that decelerating global demand has impacted the exports of the country.
Purchasing Power Parity
The purchasing power parity of India is 66675.35 USD in 2021 which is equal to 38 per cent of the average PPP of the world. However, the country has retained 3rd position in terms of purchasing power parity, although it is positioned much behind China and USA. The Indian economy is mainly an agrarian economy as the share of the nation in the agricultural sector is high. In other words, it is an important source of foreign exchange earnings by means of exports. For instance, the country earned $50 billion by exporting foreign products for FY22. On the contrary, the secondary sector of the economy is the industrial sector, In accordance with this, the government also encourages the role of the growth of the industrial sector. Various multinational companies such as IBM, TCS, Infosys, Cognizant, and Capgemini thrive in India. It is expected that by the end of 2025, the manufacturing sector of India is expected to rise to US$1 trillion.
Conclusion
After independence, the progress of the Indian economy is quite satisfying. In terms of food production, the nation has become independent. Moreover, with the emergence of industries, more educated people are getting employed. The rate of unemployment in India is the lowest in the last four years which fell by 6.4 per cent. This indicates that the Indian economy is progressing well and in the coming years, it will achieve substantial progress.
Frequently Asked Questions
1.) What type of economy India has?
India has a mixed economy
2.) State the PPP of India.
Purchasing Power Parity is 66675.35 USD in 2021.
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