India's role in the world economy Dr. Dadhe Subhash S. Associate Professor, Department of Physical Education and Sports, Dhanwate National College, Nagpur-440012, (Maharashtra) India Online published on 23 March, 2023. Abstract India was once called the golden bird. According to the economic historian Angus Maddison, India's economy was the world's largest economy from the first century to the tenth century, India's gross domestic product (GDP) in the first century was 32.9 percent of the world's GDP. It was 28.9% in the 10th century, and 24.4% in the year 1700. India's economy was heavily exploited during the British period, as a result of which, at the time of independence in 1947, the Indian economy remained just a ruin of its golden history.Since independence, India has been inclined towards socialist system, public industries and central planning were promoted. This system came to an end in Soviet Union as well as in India in 20th century. India faced severe economic crisis in 1991,as a result of which India had to mortgage its gold.After that Narasimha Rao's government started a long exercise of economic reforms under the direction of Finance Minister Manmohan Singh; after which gradually India became the attraction of foreign capital investment and America became India's largest trading partner, since 1991, a period of strength in the Indian economy started.Since then India registered a growth of more than 8% every year. India unexpectedly achieved a growth rate of 8.4 per cent in the year 2003, which was considered a sign of the fastest growing economy in the world. Not only this, it achieved an unprecedented growth rate of more than 9 percent for three consecutive years between 2005-06 and 2007-08. Overall India's annual growth rate during 2004-05 to 2011-12 averaged 8.3 percent, which is indeed a very high rate. India's economy had started slowing down even before the start of the Covid-19 pandemic. In response to the Covid-19 shock, the government and the Reserve Bank of India have taken steps to support vulnerable companies and households, expand service delivery (with increased spending on health and social security), and mitigate the impact of the crisis on the economy. It took several monetary and fiscal policy measures. Top Keywords India, Economy, Financial Year, Growth Rate, Percentage. Top |