India's nominal GDP of the world of economic power parity (PPP) to buy the fourth largest in the tenth largest. Country GDP (PPP) in 2010 and 3339 (IMF, 129) is $ per. After independence, the socialist economy, solid economic reforms after the country's economic development has progressed rapidly, as the principles of free markets and foreign investment in 1991 international competition began.

India has followed an approach inspired socialist for most of its independent history, with strict government control over private sector participation, foreign trade, and foreign direct investment. However, since early 1990, India has gradually opened up its markets with economic reforms by reducing government controls on foreign trade and investment. The privatisation of publicly owned industries and the opening up of certain sectors to private and foreign interests has progressed slowly in the middle of a political debate.

India is facing a rapidly growing population and the challenge of reducing economic and social inequalities. Poverty remains a serious problem, although it has declined significantly since independence. Official surveys estimated that in the year 2004-2005, 27% of Indians are poor.