Associate Professor, Department Of Commerce, School Of Business Studies, Manonmaniam Sundaranar University, Tirunelveli
Online published on 18 June, 2013.
India's economy is diverse, encompassing agriculture, handicrafts, textile, manufacturing and a multitude of services. Although two-thirds of the Indian workforce still earns their livelihood directly or indirectly through agriculture, services are a growing sector and play an increasingly important role of India's economy. The advent of the digital age, and the large number of young and educated populace fluent in English, is gradually transforming India as an important ‘back office’ destination for global outsourcing of customer services and technical support. India is a major exporter of highly-skilled workers in software and financial services, and software engineering. Other sectors like manufacturing, pharmaceuticals, biotechnology, nanotechnology, telecommunication, shipbuilding, aviation and tourism are showing strong potentials with higher growth rates. The economy of India, when measured in USD exchange-rate terms, is the twelfth largest in the world, with a GDP of US $1.25 trillion (2008). It is the third largest in terms of purchasing power parity. India is the second fastest growing major economy in the world, with a GDP growth rate of 9.4% for the fiscal year 2009–2010. However, India's huge population results in a per capita income of $4,542 at PPP and $1,089 at nominal. The World Bank classifies India as a low-income economy. Few employment opportunities and low levels of education and skill result in low cash incomes. This in turn affects the ability to purchase basic needs (such as medicines, education for children, etc). Women and children in particular are the hardest hit especially when access to safe and adequate sources of water are low, resulting in high vulnerability in terms of health. Women are also more affected by underemployment. The relevance of this is all too clear when one realises that 29 percent of India‘s population still lives below the poverty line, earning less than US$ 1 per day. The article describes the growth of rural India and predicts the economic prospects for India.
