While the credit rating of India was hit by its nuclear tests in 1998, it was raised to the level of investment in 2007 by S & P and Moody's. In 2003, Goldman Sachs predicts that India's GDP at current prices exceed France and Italy in 2020, in Germany, the United Kingdom and Russia in 2025 and Japan by 2035. In 2035, it was projected to be the third largest economy in the world, behind the USA and China. Goldman Sachs has predicted that India will become the 3rd largest economy in the world by 2035 based on projected growth rate of 5.3 to 6.1%. Currently It is cruising at 9.4% growth rate.

State planning and the mixed economy

After independence, India has opted for a centrally planned economy to try to achieve an efficient and equitable distribution of national resources and balanced economic development. The process of formulation and direction of the five-year plan is implemented by the Planning Commission, headed by the Prime Minister of India as its chairman.

The number of people employed in non-agricultural occupations in the public and private sectors. Totals are rounded. Data from the private sector relates to the non-agriculture establishments with 10 or more employees. India's mixed economy combining the features of both the capitalist market economy and the socialist economy, but has shifted the oldest in the last decade. The public sector generally covers areas which are considered too important or not profitable enough to give the market, including services such as the railways and postal services.

Since independence, there have been phases of the nationalization of areas such as banking and, more recently, of privatisation.

Public expenditure

India's public expenditure is classified as development expenditure, including expenditure on the central plan and central assistance and non-development expenditures, these categories can be divided into capital expenditure and revenue expenditure. Central plan expenditure is allocated to development schemes outlined in the plans of the central government and public sector undertakings; central assistance refers to financial assistance and developmental loans given for plans of the state governments and union territories. Non-development capital expenditure comprises capital defense expenditure, loans to public enterprises, states and union territories and foreign governments, while non-development revenue expenditure comprises revenue defence expenditure, administrative expenditure, subsidies, debt relief to farmers, postal deficit, pensions, social and economic services (education, health, agriculture, science and technology), grants to states and union territories and foreign governments.