In the decade of 90’s when India has the population of approx 90 crores, the foreign exchange reserves in India remains only 110 crore US Dollar. And in the year 1991 India cannot couldn’t its import business more than 2 weeks. The economic condition of the world’s largest democratic country was in danger. To get rid of this economic problem finance ministry had to change its policy to return on track. And in a historic decision, India drop its ‘Nehruvian Socialist Order’ which was based on political liberty, equality, and tolerance. Under this one could maintain individual freedom and initiative with centralized-social control and planning of the economic life of the people and came up with ‘Open Economy’ which opens the door to do business broadly.
This policy ended the License Raj and opened up the country to the global economy. It discouraged public sector monopoly and paved the way for competition in the market. And this historic change attracted the eyes of the whole world to India and resulted, India’s GDP now at Rs 1,35,76,000 crore approx, up by 2216 percent. In dollar terms, India’s GDP crossed the $2 trillion mark in 2015–16 from Rs 5,86,212 crore which was in 1991.
In terms of Foreign investment, the country has received total FDI of $371 billion (31st March 2016), since 1991. Before 1991, foreign investment was negligible. Even after adopting such policy and working for the betterment of the country and moreover even after jumping approx 1388 percent in Per capita income from Rs 6,270 (1991) to Rs 107942.18 (2016) the poverty of the country is almost same, these figures are only interesting to read but the truth is we are very far away from the goal of ending poverty.
The agriculture sector and India’s traditional occupation recorded a noticeable decline in contribution to India’s GDP. Unlikely from every other sector in the year 1991 agriculture sector contributed 29% to the GDP but at present time it only contributing 15%. Agriculture is the principal source of livelihood for more than 58% of the population of this country. So, India needs to redevelop its strategies regarding agriculture to get a certain rise in per capita income of the country.
The size of the Black economy is roughly 62% of GDP which means the total GDP of the country in 62% more than actually declared GDP. This 62% is making all the policies fail introduced by the government. The Black money simultaneously generated with the white money at the time of deceleration. To eradicate this government only focusing the black money in cash only and trying to develop the cashless society to stop the generation of Black money. But In India where only 26% of the population is using the internet than the idea of being cashless is impossible. The radical measures initiated in November 2016 in the form of demonetization. The Indian economy experienced a slowdown in the growth rate in Agriculture and allied sectors.
The unorganised sector of India is almost 82% of the total workforce force of the country which contributes only 40% to the GDP. And this unorganized sector mostly depends on the cash transactions only. It is estimated that cashless payment services can generate 21 million jobs which can add 700 million dollars to India’s GDP by the year 2025. So to get the goal of ending poverty India must need to provide basic and fundamental facilities to every citizen along with their policies. Though digital economy cannot stop the corruption but can enhance the efficiency of the economy.
Pen And Pride 
Awesome work. Just wished to drop a comment and say I’m new in your journal and adore what I’m reading. Thanks for the share
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