The 12th largest economy in the world in terms of the market exchange rate, the Indian economy has come a long way to become one of the fastest growing economies. In order to have an idea of the various economic stages, one needs to make an analysis of the Indian economy history.
India Economic Development: The Development of the Indian Economy has more or less followed a steady rising graph except the few hick ups here and there. At the time of independence in 1947, agriculture and allied sectors provided well over 70 percent of the country's employment and more than 50 percent of the gross national product.
Under a series of five-year plans through 2000, the government became a participant in many industrial fields and increased its regulation of existing private commerce and industry which helped in the Development of the Indian Economy.
India's first four five-year plans entailed a total public sector outlay of Rs.314.1 billion. The first plan (1951-56) accorded top priority to agriculture, especially irrigation and power projects. The second plan (1956-61) was designed to implement the new industrial policy and to achieve a socialist pattern of society.
The plan stressed on rapid industrialization, a 25% increase in national income. The focus of the third plan (1961-66) was industrialization, with 24.6% spent on transportation and communications and 20.1% on industry and minerals.
In the fourth plan (1969-74) agriculture and allied sectors received 16.9%, while industry and minerals received 18.5%, transportation and communications 18.4%, and power development 17.8%, all more than in any previous plan. The fifth plan (1974-79) aimed at the removal of poverty and the attainment of self-reliance. A total outlay of Rs.393.2 billion was allocated, and actual expenditures totaled Rs.394.2 billion. In the sixth development plan (1980-85) the projected outlays totaled Rs.975 billion. The seventh plan (1985-90) projected 5% overall GDP growth (which was largely achieved and even exceeded) based on increases of 4% and 8% in agricultural and industrial output, respectively.
Outlays totaled Rs.1,800 billion. The eighth development plan (1992-97) laid the groundwork for long-term structural adjustment. As the eighth plan came to an end in 1997 most analysts proclaimed it a success; economic growth averaged 6% a year, employment rose, poverty was reduced, exports increased, and inflation declined. In the ninth plan (1997-2002) there were overall improvements in the reform era including an increase in the GDP growth rate from an average of about 5.7% to about 6.1% and increased literacy from 52% in 1991 to 65% in 2001. Among all the Developments in the Indian Economy the Development in the IT sector, Development in the pharmaceutical sector and the Development in the agricultural sector have especially made a mark for themselves.