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For
most of its post-independence history, India adhered to a
quasi-socialist approach with strict government control over private
sector participation, foreign trade, and foreign direct investment.
However, since 1991, India has gradually opened up its markets
through economic reforms and reduced government controls on foreign
trade and investment. Foreign exchange reserves have risen from
US$5.8 billion in March 1991 to US$275 billion in 2007,[88] while
federal and state budget deficits have decreased. Privatization of
publicly-owned companies and the opening of certain sectors to
private and foreign participation has continued amid political
debate.[90] With a GDP growth rate of 9.4% in 2006-07, the Indian
economy is among the fastest growing in the world. India's GDP in
terms of USD exchange-rate is US$ 778.7 billion. When measured in
terms of purchasing power parity (PPP), India has the world's third
largest GDP at US$4.164 trillion. India's per capita income
(nominal) is US$ 707, while its per capita (PPP) is US$ 3600.
Although the Indian economy has grown steadily over the last two
decades; its growth has been uneven when comparing different social
groups, economic groups, geographic regions, and rural and urban
areas. Income inequality in India is relatively small (Gini
coefficient: 32.5 in year 1999–2000), though it has been increasing
of late. Wealth distribution in India is fairly uneven, with the top
10% of income groups earning 33% of the income. Despite significant
economic progress, a quarter of the nation's population earns less
than the government-specified poverty threshold of $0.40 per day. In
2004–2005, 27.5% of the population was living below the poverty
line.
India has the world's second largest[95] labour force, with 509.3
million people, 60% of whom are employed in agriculture and related
industries; 28% in services and related industries; and 12% in
industry. Major agricultural crops include rice, wheat, oilseed,
cotton, jute, tea, sugarcane, and potatoes. The agricultural sector
accounts for 28% of GDP; the service and industrial sectors make up
54% and 18% respectively. Major industries include automobiles,
cement, chemicals, consumer electronics, food processing, machinery,
mining, petroleum, pharmaceuticals, steel, transportation equipment,
and textiles.In 2006,
estimated exports stood at US$112 billion and imports were around
US$187.9 billion. Textiles, jewellery, engineering goods and
software are major export commodities. Crude oil, machineries,
fertilizers, and chemicals are major imports. India's most important
trading partners are the United States, the European Union, China,
the United Arab Emirates, Singapore, and Australia. More recently,
India has capitalised on its large pool of educated,
English-speaking people, and trained professionals to become an
important outsourcing destination for multinational corporations and
a popular destination for medical tourism. India has also become a
major exporter of software as well as financial, research, and
technological services. Its natural resources include arable land,
bauxite, chromite, coal, diamonds, iron ore, limestone, manganese,
mica, natural gas, petroleum, and titanium ore.
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