Indian Economy
Economy of India
Overview
India has a developing market-oriented economy with substantial state participation in strategic sectors. As of April 2026, it is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). By per capita income, the nation ranks 149th by nominal GDP and 119th by PPP-adjusted GDP as of 2026. From independence in 1947 until 1991, economic development was characterised by protectionist economic policies, with extensive state intervention, central planning, public ownership of key industries, and regulation. An acute balance-of-payments crisis in 1991 led led India to adopt broad economic liberalisation.
Source: Wikipedia — Economy of India (CC BY-SA)
Key concepts
How Economy of India connects to the ideas, people and events around it.
India, officially the Republic of India, is a country in South Asia. It is the world's seventh-largest country by area and its most populous.
A developing country is a country with a less-developed industrial base and a lower Human Development Index (HDI) relative to developed countries. However, this definition is not universally agreed upon.
A market economy is an economic system in which decisions regarding investment, production, and commerce are guided by price signals resulting from the forces of supply and demand.
Gross domestic product (GDP) is a monetary measure of the total market value of all of the final goods and services which are produced and rendered during a specific period of time by a country or countries.
Purchasing power parity (PPP) is a measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries' currencies.
Per capita income (PCI) or average income measures the average income earned per person in a given area in a specified year.
The Indian independence movement was a series of political efforts from the mid-1880s to 1947 that took place in the Indian subcontinent with the aim of ending British colonial rule.
Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations.
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Questions about Economy of India
What is Economy of India?
India has a developing market-oriented economy with substantial state participation in strategic sectors. As of April 2026, it is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). By per capita income, the nation ranks 149th by nominal GDP and 119th by PPP-adjusted GDP as of 2026.
What are the key concepts related to Economy of India?
The main concepts connected to Economy of India include India, Developing country, Market economy, Gross domestic product, Purchasing power parity, Per capita income, Indian independence movement, Protectionism. Each is linked on the map above with its own summary.
Which exams cover Economy of India?
Economy of India is part of Indian Economy, which appears in the syllabus of UPSC CSE, UPSC CAPF, NDA, CDS, AFCAT, SSC CGL and 58 more exams.