The economy of India is identified as a middle-income developing market economy. India is the sixth-largest economy by nominal GDP and the third-largest by PPP in the world. It is expected that in 2030 India is the third-largest economy in the world, maybe India becomes the superpower in the future, as the world’s largest democracy India’s future is bright. In 1980 India’s GDP is higher than the china but now china is 5 times higher, the economy of India depends on its history and in history, India has a very rich one. For a continuous duration of nearly 1700 years from the year 1 AD, India was the topmost economy constituting 35 to 40% of world GDP.
The impact of the coronavirus pandemic on India has been largely troublemaking in terms of economic activity as well as a loss of human lives. Almost all the sectors have been affecting by pandemics as domestic demand and exports are affected. In domestic only pharmaceutical, agriculture, etc. are some sectors which work
During the covid-19 pandemic, numerous rating agencies downgrade India’s GDP predictions for FY21 to negative figures signaling a recession in India, the most severe since 1979. according to a Dun & Bradstreet report, the country is likely to suffer a recession in the third quarter of FY2020 as a result of the over 2-month long nationwide lockdown impose to curb the spread of covid-19.
GDP Of India
Before we know about the GDP of India we should know some important facts about GDP. First of all, we know what is GDP, Components of GDP.
What is GDP?
The full form of the GDP is Gross Domestic Product. GDP is all around us such as clothes, cars, doctors and hair cutters are all of the part of the GDP, some puts clothes and cars and other puts services and hairdressers, when you add of a value of goods and services so you got Gross Domestic Product (GDP) or you can add Income and expenses of 1 year you got India’s GDP
Basically GDP is calculated on the basis of these five components which is given below. GDP is calculated on the income and expenses of a country.
Here are the five main components of GDP:
- Consumption
- Investment
- Government spending
- Import
- Export
Before we know about India’s GDP, Firstly we know about five main components of GDP :
Consumption
The consumption means consumer spending, it refers to private expenditure or consumer spending. Consumption is the value of Goods and services consume by the people, consumption is one of the largest GDP component. Many persons judge the economic status of the country by the help consumption status of a country.
People in different positions spend their income systematically in the Different structures of consumption, Rich people spend more money on luxury items and some other class people spend a lot of percentage of money on food and other basic need. Consumptions of a country show the GDP status of a country.
Investment
The word invest stands for Independent, Negotiable, Valuable, Estimable, the purpose of investment is for keeping financial goals and it is helpful for generating income and grow over a certain period. Investment is not only about money, but people invest their money to achieve goals and sometimes in the future investment is for finance and wealth creation. Money is not only for resources and there are two other resources for invests money and gain benefit in the future, Money is very important for us but money comes after invest your time and energy in the right way.
Government Spending
The government spending is also the main component of GDP calculation. Government expenses like on the public services, public sectors, capital spending are for infrastructure processes such as construction and the production of goods and services, welfare spending stands for the education, Health program, supplemental security money and NGO, etc., all are such include in government spending which helps to calculate the GDP of India.
Import
When we purchase any from another country for sale or trade called Import. The import process is very common among all countries, it also contributes its participation in calculation of GDP of country. India imports mineral fuels, jewelleries, oil and waxes, electrical machinery and 8 percent of the organic items. The country that imports the highest of things is the United States, it imports $ 2.35 trillion in 1 year.
India imports things from the outer country is a total of US $ 353,002 million in 1 year.
Export
Export is a trade business, for example – A product manufactures in one country is sold in outer countries is Export. The no.1 export country in the world is china Since 2009, china in rank 1 of the world’s largest export countries amounted to $ 2.641 trillion in 1 year. India was export major things such as jem and jewelry, petroleum product,s and other major products like spices, tea, coffee, and tobaccos, and iron and steel road.
About India’s GDP
Since, the turn of the century, India’s economy is growing At a rapid rate its helping to transform the country from 2006 to 2016 the rising income is 271 Million people out of poverty. In India, in 2005 / 2006 there are 55% of people live in the poverty but in 2016 / 2017 is 25% of people still live in poverty. The Electricity percentage in India is 70% people live with Electricity but it increases up to 95% in India live with Electricity.
The growth of GDP of India, Since 2013 to 2019. India’s Economic output is growing by 4.5% making it the first time the growth of the country is going down below 4.5% since 2013. The 4.5 % is much higher than the better development of economies by the UNITED STATES but the 12 million people of India entering the works for every year. The GDP growth of India is 4.18 % and the Annual change is – 1.94 % in the year 2019.
The GDP rank of India is 5 and the amount is $ 2.651 trillion and in Rank 1 is china amounted to $ 12.238 trillion.
Sectors Of Economy Of India
The sectors of the Economy has contained mainly three main sectors, so firstly we know about the three sectors of the Economy.
Here are the three sectors of the economy of India are:-
- Primary sectors
- Secondary sectors
- Tertiary sectors
Primary Sector
The primary sector of the economy is the first sector out of three sectors. The primary sector contains mainly Agriculture, Farming, and Mining.
So let’s take a look at the parts of primary sectors:
- AGRICUTURE
- FARMING
- MINING
AGRICULTURE
AGRICULTURE – In the Agriculture sector, we grow different types of crops like Wheat, Bajra, Rabbi, etc. The Agriculture consists of the cultivation of land to obtain vegetable products and the crop farmer has occupied this job. The first thing that a crop farmer does has plout the land by moving around the land, they planted the seeds after sometimes the fruits are harvested.
FARMING
FARMING – Farming consists of the breeding of life stocks such as animals, the life stock farmer has to do this job. The animals live in the farms and stables
MINING
Mining consists of a variety of minerals that are collected from the digging of the floor and subfloor. There is a great variety of minerals such as iron, gold, and the nonmetallic minerals such as marble, sand, clay, and sandstone.
Secondary Sector
The secondary sectors have jobs that transform raw material to the elaborated product and the main activities which compose the sectors like factories or industries and construction
FACTORIES OR INDUSTRIES
The factories or industries are able to produce the Elaborated product with machinery. In factory, there are huge buildings and lot of people works and they produce a large number of products. There are three types of industries Base Industries, Usage Industries, and Equipment industries.
CONSTRUCTION
The construction is a job for making buildings and engineering works such as bridges, tunnels, etc. Construction is in the secondary sector of the economy which also contributes to the Indian economy.
There are lots of factories and which greatly contaminating air, the floor and water and they look for that economic profits and they without thinking of and the damage they produce all surroundings.
Tertiary Sector
Mainly services are including in the tertiary sector. Services are that which is provided by the manufacturer or sellers to the customer. The tertiary activity consists of all service occupations. Transport, communication, trade, health, education, and administration are important examples of tertiary activities.
WELFARE
The welfare included our health, the doctors and nurses are working hard to take care of our health.
EDUCATION
Education is super important for us and the teachers are working in schools to take students’ knowledge and values. It comes in the tertiary sector.
These are some people who come in the tertiary sector of the economy.
Conclusion
In the above blog, we try to give you all the information about the Economy of India and the sectors of the economy of India. As we all know the economy of India is depends on the GDP calculation. GDP depends on various factors like Consumption, Investment, Government spending, imports, exports.
Here we try to describe all the facts related to the Indian economy. As the concept of the Indian economy is very wide we try to coverup all the topics.
Overall the economy of India is very great and we hope In future India is the superpower of the world. Hope you like this blog of the economy of India if you have any query about this blog write in the comment section. keep visiting aboutindia.in.