economy of India

India has a developing mixed economy with a notable public sector in strategic sectors. It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP) as of April 2026. On a per capita income basis, the nation is ranked 149th by nominal GDP and 119th by PPP-adjusted GDP as of 2026. From independence in 1947 until 1991, economic development was characterized by protectionist economic policies, with extensive state intervention, demand-side economics, natural resource optimization, and regulation. An acute balance of payments crisis in 1991 led to the adoption of a broad economic liberalisation in India and indicative planning. India has about 1,900 public sector companies under a variety of public–private partnership (PPP) models. The government plays a major role in sectors like supercomputing, space and shipping but private participation is growing, especially in space, telecom, and satellite communications.

Nearly 70% of India's GDP is driven by domestic consumption, with the nation consistently the world's third-largest consumer market. As of 2025, the service sector accounts for around 55% of GDP. Aside from private consumption, India's GDP is fueled by government spending, investments, and exports. As of 2025, India is the world's 7th-largest importer and the 10th-largest exporter. India is often described as the “pharmacy of the world,” supplying around one-fifth of global demand for pharmaceuticals to over 200 countries. India is the largest vaccine manufacturer globally by volume, accounting for over 60% of the world's production. India is the world's fifth-largest manufacturer, representing 3.2% of global manufacturing output. India's digital economy was estimated to be 11.7% of GDP, with its total value expected to surpass US$1 trillion by 2029. Nearly 63% of India's population is rural, a cohort that generates about 46% of Indian GDP.