is the backbone of Indian economy. (2024)

FAQs

Is the backbone of Indian economy.? ›

Agriculture is the backbone of Indian economy.

Agriculture is the backbone of the Indian Economy"- said Mahatma Gandhi six decades ago. Even today, the situation is still the same, with almost the entire economy being sustained by agriculture, which is the mainstay of the villages.

Micro, Small, and Medium-Sized Enterprises are the backbone of economies worldwide and of the world of work. They employ more than two thirds of the global workforce, and they contribute significantly to GDP growth.

Nearly 70% of India's GDP is driven by domestic consumption; country remains the world's fourth-largest consumer market. Apart from private consumption, India's GDP is also fueled by government spending, investments, and exports. In 2022, India was the world's 8th-largest importer and the 10th-largest exporter.

India for decades has been plagued with an aging infrastructure, incapable of meeting the needs of a modern and growing economy. Weak road and rail networks are one of the main reasons why India has struggled in expanding its manufacturing base and failed to compete with likes of China in attracting factories.

Agriculture is the backbone of Indian economy.

The backbone of India: Agriculture and Farmers.

Manufacturing is the backbone of the American economy.

TRADE: The backbone of the world's thriving economies.

Agriculture has been the traditional backbone of the Philippine economy.

Is India the strongest economy? ›

India may be the fifth largest global economy at an aggregate level, but on a per person basis, it still languishes at the 140th rank.

That puts India on course to overtake China as the world's biggest growth driver by 2028. Even in the most pessimistic scenario — in line with the International Monetary Fund's (IMF) projections for the next five years in which growth stays below 6.5 per cent — India overtakes China's contribution in 2037.

Other parts of India's service industry include electricity production and tourism. The country is largely dependent on fossil fuels oil, gas, and coal but it is increasingly adding capacity to produce hydroelectricity, wind, solar, and nuclear power. Medical tourism to India is also a growing sector.

The US dollar denominated debt remained the largest component of India's external debt with a share of 54.7 per cent at end-September 2023, followed by Indian Rupee (30.5 per cent), SDR (5.7 per cent), Japanese Yen (5.6 per cent), and Euro (2.9 per cent).

It has the potential to eventually surpass China and the United States to become the “world's largest economic superpower” by the end of this century. If high growth rates can be sustained, India is expected to overtake the US and become the world's second-largest economy by 2075. Can India sustain a high growth rate?

The relationship between the United States and India is one of the most strategic and consequential of the 21^st century. The United States supports India's emergence as a leading global power and a vital partner in promoting a peaceful, stable, and prosperous Indo-Pacific region.

Ranade, the economic reformer

Regarded as the 'father of Indian economics', Ranade believed that India's excessive reliance on agriculture was at the root of its problems. For him, economic development meant prioritising industry and commerce over agriculture.

At its core are entities such as banks, non-banking financial companies (NBFCs), capital markets, insurance providers, and regulatory bodies like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).

Pamulaparthi Venkata Narasimha Rao was a politician, and lawyer frequently referred to as the Father of Indian Economics. Narasimha Rao was fluent in several languages, including Telugu, Marathi, Oriya, Sanskrit, French, English, Urdu, German, Spanish, Hindi, and Arabic.

The drain of wealth was the portion of India's wealth and economy that was not available to Indians.In 1867, Dadabhai Naoroji put forward the 'drain of wealth' theory in which he stated that the Britian was completely draining India. He mentioned this theory in his book Poverty and Un-British Rule in India.