India's Economy

India has been slowly progressing economically, due in part to political problems and the extreme climate.  The agrarian economic base has little by little been changing to one consisting of industry or commerce. 

Although India had a flourishing trade and cottage industry (where people work at home using their own tools or equipment), with Britain's arrival it was essentially ruined.  The British used the export of opium, cotton and tea to acquire the European items they desired.  Even though the British built railways (with Indian and British money) and irrigation it didn't help India's economy.  The economy stayed this way, not growing, the last thirty or so years of British rule. 

After India regained it's independence, it encouraged self sufficiency.  This was to built up India's industry and diminish it's foreign trade dependency.  Although things did improve, it wasn't enough, until the government lessened the states control of the economy during the 1970s.  The government was still in control over certain industries in the early nineties, and economic growth was achieved with the help of loans by foreign countries by 1991.  But this was also the same time of the Persian Gulf War, which was a financial blow to India with the skyrocketing price of oil

India is the seventh largest and second most populous country in the world. A new spirit of economic freedom is now stirring in the country, bringing sweeping changes in its wake. A series of ambitious economic reforms aimed at deregulating the country and stimulating foreign investment has moved India firmly into the front ranks of the rapidly growing Asia Pacific region and unleashed the latent strengths of a complex and rapidly changing nation. 

India's process of economic reform is firmly rooted in a political consensus that spans her diverse political parties. India's democracy is a known and stable factor, which has taken deep roots over nearly half a century. Importantly, India has no fundamental conflict between its political and economic systems. Its political institutions have fostered an open society with strong collective and individual rights and an environment supportive of free economic enterprise.

India's time tested institutions offer foreign investors a transparent environment that guarantees the security of their long term investments. These include a free and vibrant press, a judiciary which can and does overrule the government, a sophisticated legal and accounting system and a user friendly intellectual infrastructure. India's dynamic and highly competitive private sector has long been the backbone of its economic activity. It accounts for over 75% of its Gross Domestic Product and offers considerable scope for joint ventures and collaborations.

Today, India is one of the most exciting emerging markets in the world. Skilled managerial and technical manpower that match the best available in the world and a middle class whose size exceeds the population of the USA or the European Union, provide India with a distinct cutting edge in global competition.