India Business Economy
Introduction

India Business Economy had made its inception in the ancient past. Such activities have catered to every section of the society from rural to urban. The size of India Business Economy can be easily comprehended on viewing the following estimates:

The India Business Economy ranks 4th in the world in terms of Purchasing Power Parity (PPP).

With a Gross Domestic Product (GDP) of US $ 1 trillion in 2007, the Business Economy of India ranks 10th in terms of exchange rates measured in USD.

With a GDP growth rate of over 9 % by the 3rd quarter of 2007, it ranks 2nd among the fastest growing economies of the world.

Contrary to the aforesaid implications, India is still categorized under the “low income generating economies” due to the nation's association primarily with the following attributes:

Low level of per capita income of less than $ 4000 at PPP

High dependence of the population on agriculture

Low level of capital formation

The diversified business activities in India can be broadly classified under two heads:

Rural activities

Urban Activities

Apart from agriculture, the rural population have always indulged in activities like animal husbandry, pottery, handicrafts, sericulture (rearing of silkworms for production of raw silk),horticulture(growing of vegetables and flowering plants), fishing and other cottage and small scale industries.

However it is the urban activities that have loomed large in depicting the progress of the economy in recent times as mentioned at the beginning. The nation starting from the slow industrial growth contributing merely 9 % of the nation's total GDP in the 60s and had stagnated to that level till 1991. The scope of activities in the tertiary or service sector also was restricted to banking and insurance under the strict supervision of the public sector.

However, the liberalization policies taken up by the government in 1991 marked a new dawn as far as Indian Business Activities were concerned. Licenses were issued to private enterprises in sectors such as manufacture,banking and insurance to both domestic and foreign, new as well as already existing players. This trend was further aggravated from the beginning of the 21st century with the emergence of a host of activities in Information Technology (IT) and IT enabled services like outsourcing. Other sectors like pharmaceuticals,biotechnology, telecommunication and aviation are also showing strong potential with rising growth rates.