The Indian economy has experienced unprecedented growth since the outset of the economic reform in 1991. In 2015, India's GDP growth reached 7.6%. In real terms, the Indian economy—today the eighth largest by this measure—is predicted to become the world’s third largest economy by 2030.
In the past decade, India has also displayed notable resilience to global economic conditions. With a GDP of over USD 2 trillion, the Indian economy is undergoing structural and policy reforms to revive growth and ensure the inclusiveness of growth outcomes. Industry contributes 31.2% of the GDP, while agriculture and services contribute 15.3% and 53.4% respectively. India is now the sixth largest manufacturing country in the world.
India’s total population is approximately 1.29 billion, with an annual growth rate of 1.2%. The median age in India is 29 years, leading the country to a phenomenon known as a "demographic dividend’"(UNDP, 2015). 92% of India’s 470 million workers are in the informal sector, while 70% of labour is rural labour. India has recorded a decline in poverty in recent years.
Despite these positive trends, large sections of the society are subject to social and economic inequalities and deprivations, keeping India in the "Middle Human Development" category.
The objective of India’s current Five-Year Plan (2012-2017) is to achieve a faster, sustainable and more inclusive growth. To achieve this, the Government has launched various initiatives that guide the national development agenda, including initiatives such as "Make in India" , Swachch Bharat Mission, 100 Smart Cities, Clean Ganga Mission, Start Up India and Skill India. The overall aim is to develop the necessary infrastructure, diversify sources of energy, boost traditional and modern industrial sectors, and implement suitable policies for an inclusive and sustainable growth.