India Economy History
Economic History of India, in the sense of the meaning of the term economic, is at least 5000 years old. The India Economy History shows that before the last decade India was probably on the short list of the countries with the worst economic systems. But after that some changes took place for betterment of the Indian economic system.

According to India Economy History during independence the economy was predominantly agrarian. Although after that in India Economy History we notice a lot of fluctuations in the economy, but India's economy still moves on at a steady pace. In 1947 the country was poor and shattered by the violence and economic and physical disruption involved in the partition from Pakistan which created a major dent in the economic system in the India Economy History. The economy had stagnated since the late nineteenth century, and industrial development had been restrained to preserve the area as a market for British manufacturers.

In the fiscal year (FY--see Glossary) 1950, agriculture, forestry, and fishing accounted for 58.9 percent of the gross domestic product (GDP--see Glossary) and for a much larger proportion of employment. Manufacturing, which was dominated by the jute and cotton textile industries, accounted for only 10.3 percent of GDP at that time and so in the 1950s, there was steady economic growth, but results in the 1960s and 1970s were less encouraging.

Beginning in the late 1970s, successive Indian governments sought to reduce state control of the economy. The rate of Growth of the Indian Economy improved in the 1980s. From FY 1980 to FY 1989, the economy grew at an annual rate of 5.5 percent, or 3.3 percent on a per capita basis. Industry grew at an annual rate of 6.6 percent and agriculture at a rate of 3.6 percent. A high rate of investment was a major factor in improved economic growth. Investment went from about 19 percent of GDP in the early 1970s to nearly 25 percent in the early 1980s.

Currently the economy of India is the fifth largest in the world as measured by purchasing power parity (PPP) and when measured in USD exchange-rate terms, it is the tenth largest in the world, with a GDP of US $1.0 trillion (2007). India is the second fastest growing major economy in the world, with a GDP growth rate of 9.2% at the end of the second quarter of 2006–2007.

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