Changing Scenario Of Indian Economy

India is one of the fastest developing countries in the world, but as you have noticed it’s still a developing country, even after more than 60 years of independence India is still labeled as a Developing country. The speed of development in our country is less and low compared to other countries. But from a few years, the economy of India is characterized as a developing market economy. It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the IMF, on a per capita income basis, India ranked 139th by GDP (nominal)and 118th by GDP in 2018. Since the start of the 21st century, annual average GDP growth has been 6% to 7%, and from 2014 to 2018, India was the world's fastest-growing major economy, surpassing China.
The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings, and investment rates, and its increasing integration into the global economy. Earlier, at the beginning of the 21st century, the Indian economy was not much developed, and the developing rate was very slow. After coming of BJP government in power in 2014, the economy of India also started developing which also results economic growth of India.
According to the world bank, India's GDP growth during January–March period of 2015 was at 7.5% compared to China's 7%, making it the fastest-growing economy. During 2014–15, India's GDP growth recovered marginally to 7.3% from 6.9% in the previous fiscal. During 2014–15, India's services sector grew by 10.1%, the manufacturing sector by 7.1% & agriculture by 0.2%. Indian Economy grew at 7.6 & 7.1 in FY 2015–16 and FY 2016–17 respectively as major reforms had taken place like Demonitisation and implementation of GST in FY 2016–17. India is expected to overtake China as the world’s most populous country by 2024. It has the world’s largest youth population, nevertheless according to the OECD over 30% of India's youth are NEETs. This tremendous change in the Indian economy, happen only of the various support from different sectors:-
Agriculture as we all know India's almost 56% population is a farmer. so, it is known as the country of the village and peoples are farmers.
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 18.6% of the GDP in 2005, employed 60% of the total workforce and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India. Yields per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the green revolution.

India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric, and black pepper. It also has the world's largest cattle population (193 million). It is the second-largest producer of wheat, rice, sugar, groundnut, and inland fish. It is the third-largest producer of tobacco. India accounts for 10% of the world fruit production with the first rank in the production of banana and sapota, also known as Chiku.

This is one of the reasons which helps India to change the scenario of the Indian Economy.



















Services
India is fifteenth in services output. The service industry employs English-speaking Indian workers on the supply side and on the demand side, has increased demand from foreign consumers interested in India's service exports or those looking to outsource their operations. India's IT industry, despite contributing significantly to its balance of payments, accounts for only about 1% of the total GDP or 1/50th of the total service. Various industries and companies these days are using transportation and giving jobs in various fields which help to add income at the national level.






Oil




India consumes the second-largest amount of oil in the Asia-Pacific region behind China. The combination of rising oil consumption and fairly unwavering production levels leaves India highly dependent on imports to meet the consumption needs. Huge transportation needs large amount of oil which adds income and helps in changing the economic scenario.

Natural gas


The gross import of natural gas increased from 8.06 BCM in 2008–09 to 19.87 BCM in 2017–18, recording a CAGR of 9.44%. India has an 82.8% import dependence for crude oil and 45.3% for natural gas. The net foreign exchange outgo is 63.305 billion US$ in the financial year 2017–18 on account of crude oil imports

Here I got the data of 2017-18, the government earned Rs 554,404 crores from these products, said the statement issued by the Ministry of Petroleum & Natural Gas. Oil marketing companies (OMCs) such as IOCL, HPCL, and BPCL have Rs 16,894 crores, Rs 6,029 crores, and Rs 7,132, crores respectively.






These things have a positive effect on many aspects of life-

Employment: India's labour force is growing by 2.5% every year. Official employment exceeds 9%. The employment rate goes increasing. India's employment rate improved significantly by 3.3% for the week ended June 14 at 35.7% compared to 32.4% for the week before that, the highest weekly jump so far, as business starts opening up and people join back the workforce, shows the weekly survey by the Centre for Monitoring Indian Economy

Effect on women: Economic development in India had a varying effect on women depending on their age, education, and location. Traditionally in India, women's role is in the household. As girls, they are raised to work for and better their families. Earlier they were not given any jobs and were not allowed to do jobs, but now they are able to do work outside. These industries create opportunities for them.



Increase in Economic growth: Economic growth means an increase in real GDP – an increase in the value of national output, income, and expenditure. Essentially the benefit of economic growth is higher living standards – higher real incomes and the ability to devote more resources to areas like health care and education.

Effects of an increase in Economic growth:-
1. Higher economic growth leads to higher tax revenues and this enables the government can spend more on public services, such as health care and education e.t.c. This can enable higher living standards, such as increased life expectancy, higher rates of literacy, and a greater understanding of civic and political issues.


2. Money can be spent on protecting the environment- With higher economic growth a society can devote more resources to promoting recycling and the use of renewable resources

3.Investment- Economic growth encourages firms to invest, in order to meet future demand. Higher investment increases the scope for future economic growth – creating a virtuous cycle of economic growth.
4.Economic development- The biggest factor for promoting economic development is sustained economic growth. Economic growth in south-east Asia over the past few decades has played a major role in reducing absolute levels of poverty – increasing life expectancy.


At last, I would like to say the government spendings, business investments, consumer spendings on the goods and services produced within the economy, contribute as a whole to the GDP growth of the country.
GDP or Gross Domestic Product is a measure of the monetary value of all the finished goods and services produced within the country in a specific time period.
Thus you are actually contributing to the GDP when you buy that loaf of bread from the market without even realizing it or when your company pays you the salary at the end of each month. It all adds up and that’s how the GDP Growth Rate is calculated.
If you work for a company, you are contributing to the growth of your company, your industry, and the GDP. The same applies to start your own business.
If you spend your salary, you are increasing the consumption of your country, thus increasing economic activity and GDP.
If you pay your taxes, you are increasing the revenue of your Government, which will turn into Government spending, increasing GDP.
If you invest in the stock market or other financial institutions, the gains you get contributes to the growth of the GDP.
If you invite a friend or a family member overseas to visit, their spending in the country is a contribution to the GDP.
As a student, you can contribute to the economy of your country by learning more about trading and some other activities relating to your country's economy system..By doing that you will have more experience….
Most activities contribute to the GDP one way or another. Some countries however are more productive, producing more output from the activities listed above.
Most activities contribute to the GDP one way or another. Some countries however are more productive, producing more output from the activities listed above.
What we contribute in economic growth, we get it back.
"Coming together is a beginning; keeping together is progress; working together is a success".

- by AKASH DEEP