The economy of India as per the GDP is the eleventh largest economy in the world and by purchasing power parity the fourth largest. Following strong economic reforms from the socialist inspired economy of Indian nation before the time of independence, the country began to develop a fast-paced economic growth, as free market principles were initiated in 1990 for international competition and foreign investment. India is an emerging economic power with a very large amount resources both natural and human resource and a growing large pool of skilled professionals. Economists predict that by 2020, India will be among the leading economies of the world.
Pre independence era the average annual growth rate of Gross Domestic Product which is commonly known as G.D.P. was around 0.9% and real per capita income was 11% within the geographical boundaries of the present day India. The annual average growth rates of N.N.P at factor cost and per capita NNP at constant prices were as follows up to 1990
Period Per capita NNP growth rate Per capita NNP growth rate Growth Rate of NNP
First plan period (I951-56) 1.8 3.6
Second Plan period (1956-61) 2.0 4.1
Third Plan Period (1961-66) 0.2 2.5
Annual Plan (1966-69) 1.5 3.8
Fourth Plan (1969-74) 1.0 3.3
Fifth Plan (1974-79) 2.7 5.0
Annual Plan (1979-80) -8.3 -6.0
Sixth Plan (1980-85) 3.1 5.3
Seventh Plan (1985-90) 3.7 5.9
From the foregoing data it is clear that while the average annual growth rate between the first plan and the fourth plan was between 3%, to 4% growth during the 80's was at an annual average rate of 5.9%. This was higher than the world output growth rate of 3.3% and that of developing countries at 4.3% during the same period.The average population growth rate of 2.0% in spite of annual growth rate in per capita GDP in the Nineteen Eighties was over 3.5%. However the aim of doubling the per capita income in the country in 25 years of planning - i.e. by 1975... [continues]
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