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1. The economy of India is the fourth largest in the world, with a GDP of $3.63 trillion at PPP, and is the tenth largest in the world with a $691.9 billion at 2004 USD exchange rates and has a real GDP growth rate of 6.2% at PPP.

2. Growth in the Indian economy has steadily increased since 1979, averaging 5.7% per year in the 23-year growth record.

3. Indian economy has posted an excellent average GDP growth of 6.8% since 1994 India, the fastest growing free-market democracy in the world, registered a growth rate of 8.2 percent in FY 2004.

4. India has emerged the global leader in software and business process outsourcing services, raking in revenues of US$12.5 billion in the year that ended March 2004.

5. Agriculture has fall to a drop because of a bad monsoon in 2005. There is a paramount need to bring more area under irrigation.

6. Export revenues from the sector are expected to grow from $8 billion in 2003 to $46 billion in 2007.

7. India’s foreign exchange reserves are over US$ 102 billion and exceed the forex reserves of USA, France, Russia and Germany. This has strengthened the Rupee and boosted investor confidence greatly.

8. A strong BOP position in recent years has resulted in a steady accumulation of foreign exchange reserves. The level of foreign exchange reserves crossed the US $100 billion mark on Dec 19, 2003 and was $142.13 billion on March 18, 2005.

9. Reserve money growth had doubled to 18.3% in 2003-04 from 9.2 in 2002-03, driven entirely by the increase in the net foreign exchange assets of the RBI.

10. Reserve money growth declined to 6.4% in the current year to January 28, 2005.

11. Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century.

Issues and Priorities for India
As India prepares herself for becoming an economic superpower, it must expedite socio-economic reforms and take steps for overcoming institutional and infrastructure bottlenecks in the system. Steps are to be taken for improving pace and development. There are certain challanges that Indian Economy is facing today.

There is a paramount need to move Indian agriculture beyond its centuries’ old dependency on the monsoon by bringing more area under irrigation and by better water management. This has rightly been identified in the NCMP as one of the areas with the highest investment priority.
Simplifying procedures and relaxing entry barriers for business activities. The ease with which firms are able to enter into and exit from business activities is an important determinant of the investment climate.
Farmers and enterprises should have access to finance at competitive rates and for all maturities for their credit-worthy projects.
Control of population is also a major reform that has to take place.