Economy

Indian economy is the third fastest growing economy and grew at 9.2% in 2006/07. In 2009/10 the economy grew by 7.9% and is expected to grow by 8.5% in 2010/11 according to the World Bank and the Ministry of Finance, GOI. The major contribution in this growing economy is coming from manufacturing and the services sector, but it is the agriculture sector which is pulling the total growth down.

India, with sixth of the world’s population (1.12 billion), on 2.4% of the world’s land mass is the second most populated country in the world after China. According to the World Bank reports the Indian population is growing at 1.6% per year. Over 31% of the Indian population lives in urban and peri-urban areas and almost 65% of the population is dependent on Agriculture and subsidiary activities. As an analyst put it, “Indian economy grows at night, when government sleeps”, referring to the services and Back Process Outsourcing (BPO) segment and this is also the sector, which has the most scope to grow in terms of income generation.

According to the Economic Survey of 2009/10, conducted by GOI, it is estimated that the number of people in the age group 15 – 64 in 2006/07 was 63%, which by 2011 is expected to increase to 65%. It is estimated that almost 54% of the Indian population in 2006/07 is less than 30 years old and this will prove to be a growth driver. In 5 years 2001/02 to 2006/07, the numbers of destitute (income on PPP basis < $2000 per year) has come down from 140 million to 95 million, while the consuming class (income on PPP basis $4000 – 18000 per year) has gone up from 265 million to 432 million, an increase of 33.4 million per year, an average increase of 12.6% per year. Another report presented by Business India, suggests that India has the highest number of people in the age group 15-21, 115 million, followed by China with 99 million people in same age category. The ‘demographic dividend’ will pay off in terms of a larger and younger labor force gainfully employed in production, and generating a larger national income, particularly in a world where many countries are transiting to aging societies.

Indian economy is the third fastest growing economy and grew at 9.2% in 2006/07. In 2009/10 the economy grew by 7.9% and is expected to grow by 8.5% in 2010/11 according to the World Bank and the Ministry of Finance, GOI. The major contribution in this growing economy is coming from manufacturing and the services sector, but it is the agriculture sector which is pulling the total growth down.

India, with sixth of the world’s population (1.12 billion), on 2.4% of the world’s land mass is the second most populated country in the world after China. According to the World Bank reports the Indian population is growing at 1.6% per year. Over 31% of the Indian population lives in urban and peri-urban areas and almost 65% of the population is dependent on Agriculture and subsidiary activities. As an analyst put it, “Indian economy grows at night, when government sleeps”, referring to the services and Back Process Outsourcing (BPO) segment and this is also the sector, which has the most scope to grow in terms of income generation.

According to the Economic Survey of 2009/10, conducted by GOI, it is estimated that the number of people in the age group 15 – 64 in 2006/07 was 63%, which by 2011 is expected to increase to 65%. It is estimated that almost 54% of the Indian population in 2006/07 is less than 30 years old and this will prove to be a growth driver. In 5 years 2001/02 to 2006/07, the numbers of destitute (income on PPP basis < $2000 per year) has come down from 140 million to 95 million, while the consuming class (income on PPP basis $4000 – 18000 per year) has gone up from 265 million to 432 million, an increase of 33.4 million per year, an average increase of 12.6% per year. Another report presented by Business India, suggests that India has the highest number of people in the age group 15-21, 115 million, followed by China with 99 million people in same age category. The ‘demographic dividend’ will pay off in terms of a larger and younger labor force gainfully employed in production, and generating a larger national income, particularly in a world where many countries are transiting to aging societies.