Hidden History of Indian Economy till now

Hidden History of Indian Economy till now

The dawn of the Indus Valley Civilization around 3500 BC marked the beginning of India’s rich history. Over the centuries, India evolved into the world’s largest economy, contributing a significant 35-40% of the global GDP from 1 CE to 1700 CE. This period, known for its economic prowess, peaked during the Mughal era (1526–1858 AD), where India’s GDP surged to an estimated 25.1% of the world economy in the 16th century.

However, the trajectory took a turn with the advent of the British East India Company from 1757 onwards. As the company’s political influence expanded, India’s share of the world income dwindled, plummeting from 27% in 1700 AD to a mere 3% in 1950 after gaining independence. The British exploitation disrupted the continuous inflow of bullion into India, altering its economic landscape.

The post-independence period from 1951 to 1979 saw modest economic growth, averaging around 3.1% per year. The 1980s witnessed a significant upswing, with the economy expanding at an annual rate of 5.5% from FY 1980 to FY 1989. This phase also saw a notable increase in investment, rising from approximately 19% of GDP in the early 1970s to nearly 25% in the early 1980s.

A transformative moment arrived in 1991 when Dr. Manmohan Singh, in his budget speech, invoked Victor Hugo’s wisdom: “No power on earth can stop an idea whose time has come.” This marked the beginning of a new era for India’s economy. Since then, the nation has experienced remarkable progress, with the GDP (nominal) surging from US$ 267.52 billion in 1992 to US$ 1.85 trillion in 2012.

The foreign trade scenario in 2012 illustrated India’s global economic engagement. The total trade reached US$ 785 billion, with China, the United Arab Emirates, the United States, Saudi Arabia, and Switzerland ranking among India’s top five trading partners. This global economic integration reflected India’s position as a key player in the international market.

In summary, India’s economic narrative encompasses ancient prosperity, colonial challenges, and post-independence resilience. The Mughal period stands out as a pinnacle, while British colonialism had a profound impact on India’s share of the world income. Post-independence, economic shifts in the 1980s and the transformative policies of 1991 set the stage for India’s emergence as a major global economic player, evident in the impressive GDP growth and active participation in international trade by 2012. This journey reflects India’s adaptability and dynamism in the face of historical and contemporary economic challenges.

Indian Economy in Indus Valley Civilization (3500 BC to 1800 BC):

The ancient echoes of India’s narrative reverberate from the cradle of the Indus Valley Civilization, where a flourishing society emerged around 3500 BC.

Indian Economy (1 CE to 1700 CE):

The canvas of India’s economic portrait painted itself with vibrant hues between the 1st century and 1700 CE, depicting a spectacular tapestry where India constituted a formidable 35-40% of the global GDP.

Indian Economy in Mughal Period (1526–1858 AD):

A chapter of opulence unfolded during the Mughal era, akin to a dazzling gem in India’s history, where the GDP reached its zenith, glittering at an estimated 25.1% of the world economy in the 16th century.

Indian Economy in British East India Company Era (1757 onwards):

The entry of the British East India Company marked a paradigm shift. As their political tendrils spread, India’s share of the world income crumbled, dwindling from a proud 27% in 1700 AD to a mere 3% in 1950 post-independence.

Indian Economy Post-Independence Growth (1951-1979):

The early post-independence era unfolded as a modest yet determined journey, with economic growth ambling at an average annual rate of around 3.1%.

Indian Economy in 1980s:

The pendulum of progress swung decisively in the 1980s, a symphony of economic crescendo echoing at an annual rate of 5.5% from FY 1980 to FY 1989. Investment soared, a bold brushstroke on the canvas of India’s economic resurgence.

Indian Economy in 1991:

The turning point, a watershed moment in 1991, where Dr. Manmohan Singh’s budget speech resonated with Victor Hugo’s wisdom, heralding a new economic dawn.

Indian Economy in 1992 to 2012:

Subsequent years narrated a saga of substantial progress, an economic odyssey where India’s nominal GDP transformed from a modest US$ 267.52 billion in 1992 to a formidable US$ 1.85 trillion in 2012.

Indian Economy in 2012:

The global stage witnessed India’s economic ballet in 2012, a foreign trade performance amounting to US$ 785 billion. China, the United Arab Emirates, the United States, Saudi Arabia, and Switzerland stood as key dance partners on the world economic floor.

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