The economy of India is a developing mixed economy, which means both the government and private companies play important roles in economic activities. The government still controls some important sectors such as railways and other strategic industries. India is the fifth largest economy in the world as per GDP.
| Rank | Country | GDP | GDP Growth | GDP per Capita |
|---|---|---|---|---|
| 1 | United States | $30.62 trillion | 2% | $89,599 |
| 2 | China | $19.4 trillion | 4.8% | $13,806 |
| 3 | Germany | $5.01 trillion | 0.2% | $59,925 |
| 4 | Japan | $4.28 trillion | 1.1% | $34,713 |
| 5 | India | $4.13 trillion | 6.6% | $2,818 |
| 6 | United Kingdom | $3.96 trillion | 1.3% | $56,661 |
| 7 | France | $3.36 trillion | 0.7% | $48,982 |
| 8 | Italy | $2.54 trillion | 0.5% | $43,161 |
| 9 | Russia | $2.54 trillion | 0.6% | $17,446 |
| 10 | Canada | $2.28 trillion | 1.2% | $54,935 |
After gaining independence in 1947, India followed economic policies where the government had strong control over industries and markets. The economy was more protectionist, meaning the government tried to protect domestic industries from foreign competition. During this period, the government created many public sector companies, regulated businesses, and played a major role in economic planning.
In 1991, India faced a serious balance of payments crisis, which forced the country to change its economic policies. As a result, the government introduced economic liberalisation, allowing more participation from private companies and reducing government control in many sectors.
Today, India has around 1,900 public sector companies. The government still fully owns and controls the railway system, but in many other areas private companies are increasingly involved. For example, many new national highway projects are now built and maintained through Public-Private Partnership (PPP) models, where both the government and private companies share responsibilities.
The government still plays a major role in sectors such as supercomputing, space technology, and shipping, but private participation is growing, especially in areas like space services, telecommunications, and satellite communications.