India Economy

Indian economy is ranked as the tenth largest in the world in terms of currency conversion and fourth largest in terms of purchasing power parity. It recorded one of the fastest annual growth rates of around eight percent in 2003. Owing to its large population, however, India's per-capita income by purchasing power parity ranked 120th by the World Bank. India's foreign exchange reserves amount to over US$ 143 billion. Mumbai serves as the nation's financial capital and is also home to both the headquarters of the Reserve Bank of India and the pre-eminent Bombay Stock Exchange. While a quarter of Indians still live below the poverty line, a large middle class (more than 300 million strong) has now emerged along with the growth of a promising IT industry.

The Indian economy depends much on agriculture, which now contributes to less than 25% of the GDP. Other important industries are mining, petroleum, diamond polishing, films, textiles, information technology services, and handicrafts. Most of India's industrial regions are centred around major cities. Now India has emerged as one of the largest players in software and business process outsourcing services. There are also a lot of small-scale industries that provide steady employment to many of its citizens in small towns and villages. Tousism Sector is also an important contributor to the Indian Economy.

India's major trading partners are the United States, Japan, China and the United Arab Emirates. India's main exports items include agricultural products, textile goods, gems and jewellery, software services and technology, engineering goods, chemicals and leather products while its main import commodities are crude oil, machinery, gems, fertiliser, chemicals.

• Employment Generation Programmes
• Union Budget 2008
• Taxation in India