History of Indian Economy is broadly classified into four parts

Pre-Colonial Period (up to 1773) Colonial Period (1773 1947) Pre-Liberalization (1947 1991) Post-Liberalization (since 1991)

 Indus Valley Civilization flourished on the Indian soil between the

time frame of 2800 BC and 1800 BC

Inhabitants practised agriculture, domesticating animals Developed trade relationships between

different cities
Developed a uniform system of

weights and measures

Developed Urban Planning Equipped Worlds first Urban Sanitation System

 Goods transportation via the Coromandel, the Malabar,

the Saurashtra and the Bengal Coast lines

Mughal Empire --- its uniform revenue policy

and political stability

Rule of Maratha Empire over most parts of India Maratha defeat in the third battle of Panipat--- raise of political turmoil

in the country
Disturbance in Indian economy ---

drastic change in the Indian economy by the entry of British East India Company

 Drastic shift in the economic activities across the country Commercialization of agriculture --- decline in food grain production Mass impoverishment and destitution of farmers Sharp decline in the economic structure due to raise of famines Railways, telegraphs, common law and

adversarial legal system were established leading to development

Civil service was aimed to be free from

political interference

 Economic policies of India after Independence are marked by excessive economic

interventions and business regulations

Large and heavy public sector industries were developed Planning commission --- Five Year Planning Process Industries like mining, steel, machine tools, insurance, telecommunications and power

plants were effectively nationalized

Theeconomy of India was unsuccessful to grow at pace with other Asian countries for

the first three decades

Green Revolution in 1965

 Collapse of the Soviet Union and theGulf War ---- a spike in oil prices $1.8billion bailout loan from the International Monetary Fund (IMF) Economic reforms of 1991 ---- stress on 3 major areas

Liberalization Privatization Globalization

Tremendous improvement in the literacy rates, food security and life expectancy

By 2035, India would be the third largest economy in the world, next only to USA and China --- Global Investment Bank, Goldman Sachs Indian Economywill grow to 60% of size of the USAseconomy Major sectors of Indian economy Agriculture sector --- employing 52.1% of the total Indianworkforce contributing 17% to countrys GDP Industrial sector --- employing 23% of the total Indianworkforce contributing 28% to countrys GDP Service sector --- employing 14% of the total Indianworkforce contributing 55% to countrys GDP

Service sector ---- Information Technology Account for one-fourth of Indias total export

&

BPO

India ranks 13th in terms of services output ---- International statistics Economic reforms of 1991 --- Indiabecame the favourite spot for the offshore services by many of the US and other foreign companies

Reasons for choosing offshore jobs by India --- Stable Economy Modern Telecom Infrastructure Vast pool of technically sound and skilled workers. Government Policies English