If measured in USD exchange-rate terms, the economy of India is the twelfth largest in the world, with a GDP of US $1.09 trillion in the year 2007. India is the third largest economy in terms of purchasing power parity. India is also the second fastest growing major economy in the world, with a GDP growth rate of 9.4 per cent for the financial year 2006–2007. Unity in diversity-this is the essence of India and holds true for all its aspects. Like its diversity in language, culture, topography, customs and traditions, Business in India also shows a huge diversity. The major business in India encompasses manufacturing, agriculture, textile, handicrafts, and a multitude of services. India's huge population results in a per capita income of $4,182 at PPP and $964 at nominal estimate of the year 2007. But the World Bank classifies India as a low-income economy.
Although almost two-thirds of the Indian workforce earn their sustenance directly or indirectly through agriculture, but services are a growing sector and is gradually playing an increasingly important role in Indian economy. The advent of the digital age, and the large mass of young and educated people fluent in English, is gradually transforming India as an important “back office” destination for customer services, global outsourcing and technical support. India is a major exporter of highly skilled workers in financial and software engineering. Other sectors like aviation, manufacturing, pharmaceuticals, telecommunication, shipbuilding, biotechnology, nanotechnology, and Indian tourism are showing strong potentials as the prospective business in India.
India followed a socialist-inspired approach for most of its independent history, but has a strict government control over foreign trade, private sector participation, and foreign direct investment. However, since the early 1990s, India has opened up its markets through economic reforms and also by reducing governmental controls on foreign trade and investment. The privatization of publicly owned industries, the opening up of certain sectors to private and foreign interests has went on slowly. This has also increased the business opportunities in India. In fact, because of the open trade policy of the government, business has remarkably increased in India.
The Indian money market is classified into: the organized sector and unorganized sector. The organized sector of India comprises of private, public and foreign owned commercial banks and cooperative banks. They are together known as scheduled banks. As the third-largest economy in the world in terms of PPP, India is undoubtedly one of the most preferred destinations for foreign direct investments (FDI). India has strength its information technology and other significant areas such as auto components, apparels, chemicals, pharmaceuticals and jewelry. India has always held promise for global investors. The open governmental policy further encouraged it. The diverse business in India provides for people from all social strata. But agro-based industries still continues to be the major industrial sector of the country.
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