India is developing into an open-market economy, yet traces of its past autocratic policies remain. Since 1997, India is able to accelerate its economic growth at an average of 7% each year. The average 7% growth was a combined result of economic liberalization, including reduced controls on foreign trade and investment, which began in the early 1990s.
More than of the work force of India is indulged in farming and agriculture and the other half is indulged in handicrafts, a wide range of modern industries, and a multitude of services. The overall economy comprises of traditional village farming, modern agriculture, handicrafts, modern industries, and a multitude of services. The service Industry of India is the major contributor accounting for more than half of the economic growth with just one third of work force.
India has one of the largest educated English-speaking population to become a major exporter of information technology services and software workers. An industrial slowdown early in 2008, followed by the global financial crisis, led annual GDP growth to slow to 6.1% in 2009, still second highest growth in the world among major economies.
With the accelerated GDP reports of India, Goldman Sachs has predicted that India will overtake the GDP of France and Germany by 2020. India has made provisions for setting up Special Economic Zones (SEZ) and software parks that offer tax benefits and better infrastructure to set up business, which will in turn benefit the country. Mumbai city remains the economic capital of the country with RBI (Reserve Bank of India) and the Stock Exchange located here.
Reserves of foreign exchange and gold: