Detailed Overview of India's Economic History
- During the Mughal period (1526–1858 AD), the GDP estimated at about 25.1% of the world economy, and eventually became 24.3%. This was the second largest GDP in the world.
- In India, during British rule, the British East India Company had political power that expanded in India from 1757.
- The Company was in charge of the trade, and they used revenue from its provinces by purchasing Indian raw materials, spices, and goods.
- India was not an exporter of processed goods for which it received payment in billions. Instead, it was the exporter of raw materials and a buyer of manufactured goods.
- Fine cotton and silk was exported from India to markets in Europe, Asia, and Africa.
- Due to the many exports done under British colonial rule, India’s economy was completely devastated.
- famines: world’s lowest life expectancies
- pervasive malnutrition
- pervasive malnutrition
- After the British left, there was a plan (the first five year plan) for the development of the economy, implemented in 1952.
- Investments in the creation of irrigation facilities, constructions of dams, and infrastructure
- scientific and technological institutes, development of space programs
World Economy: Future Economic Power Shifts (2008-2040): % Share of World GDP in PPP
- scientific and technological institutes, development of space programs
World Economy: Future Economic Power Shifts (2008-2040): % Share of World GDP in PPP
Balance of Trade
- Total value of exports: $465.90 billion (2013-2014)
- Trade Deficit: the amount by which the cost of a country's imports exceeds the value of its exports
- Trade deficit in march 2015 was the highest compared to any year: $11.79 billion
- During this time, exports started to fall, causing a depreciating growth of the economy of India
- The global prices of crude oil went down, and India's import bill went up, making the trade deficit larger.
Taxation Policy
- Indian government proposed a tax reform bill to facilitate the introduction of proposed Goods and Services Tax (GST).
- The taxation policy permits the states to levy VAT or CST
- VAT is Value Added Tax that is a tax on the amount by which the value of an article has been increased at each stage of its production or distribution.
- CST is Central Sales Tax
Future Trends
- The Government looks forward to greater economic development through the many reforms it has introduced
- According to the graph, real GDP is positioned below nominal GDP.
- The variation over years is mostly constant, with not many noticeable expasionary or contractionary periods.