Q:

What type of economy does India have?

A:

Quick Answer

India has a strong and fast-growing free market economy. The country is a member of the G20 major economies, although it relies heavily on imports.

Continue Reading

Full Answer

Although India has one of the largest economies in the world, the country is very poor. This is mainly due to its exceptionally large population. According to the World Bank, more than 800 million people in India lived below the poverty level as of 2014. Due to the high rates of poverty, the government is continuously implementing new policies and strategies to combat this issue.

Agriculture is an important part of the country's economy as more than 10 percent of the its exports consist of agricultural products. The mining industry also plays a major role in the economy as India is the fourth largest producers of minerals in the world.

Tourism contributes a large part to the economy, as the country sees more than 6 million tourists per year. One major reason for the large tourism is the low-cost health options available including spa packages and long-term health care.

Corruption and poverty has been a mainstay of the country for a long time. However, through excellent education and other means, the government is trying to increase economic growth and decrease unemployment rates.

Learn more about South Asia

Related Questions

Explore