75 years of Independence: India's journey from Rs 2.7 lakh crore GDP to $3.17 trillion GDP

In the last 75 years since India gained Independence, the country has come a long from being nowhere to be one of the biggest economies in the world. In 1947, India's Gross Domestic Product (GDP) was Rs 2.7 lakh crore which has increased to $3.17 trillion, making it the sixth-largest economy. By 2031, India is expected to become the third largest economy. The long-term growth perspective of India's economy remains positive because of its young population and low dependency ratio, healthy savings and global investments.

Historically, India has tracked its economy and GDP in three sectors- agriculture, industry and services. Agriculture accounted for 20.2 percent of GDP in 2021, according to the government. Crop-yield-per-unit-area of all crops has grown since 1950 because of special emphasis on the sector and improvements in irrigation, technology, subsidies, and agricultural credit. It should be noted that the average yield in India is generally 30% to 50% of the highest average yield in the world.

Indian economy at 75

• GDP has shot up from Rs 2.7 lakh crore in 1947 to $3.17 trillion in 2021-22
• Per Capita Income has increased from Rs 265 in 1950 to Rs 1,28,829 in 2020-21
• Forex reserves have grown from $1.82 billion (1951-52) to $572.978 (till August 5, 2022)
• 'Aatmanirbhar Bharat' campaign has given new life to MSMEs which were lagging behind due to foreign competitors
• Currently, the sixth largest economy, India will become the third largest by 2031.

India has also become self-sufficient in food grains. From receiving food aid due to famine and other issues to becoming a new exporter, India has come a long way. In 1950, the total food production stood at 54.92 million tonnes while has rose to 314.51 million tonnes in 2020-21.

The manufacturing and industry sector has also seen an uphill rise due to ease of business, foreign direct investment (FDI), and expansion in the production of fast-moving consumer goods. After the independence, India's domestic sector was faced with increasing foreign competition including the threat of cheaper Chinese imports. The country has since handled the change by flattening costs, revamping management and new technology. India's "Aatmanirbharat" campaign has also given new life to MSMEs which were lagging behind due to foreign competitors.

The services sector has the largest share of India's GDP, accounting for 53 percent in 2021-22. The services sector provides employment to nearly a quarter of the workforce. 

Until 1991, India was largely isolated from world markets. Trading in foreign countries was subject to import tariffs, export taxes were imposed and there were quantitive restrictions. The FDI was also restricted by upper-limit equity participation, apart from government approval.

For the first 15 years after independence, exports were stagnant due to general neglect of trade policy by the government at the time. Imports at that time consisted primarily of machinery, consumer goods and raw materials.

Since liberalisation, the value of New Delhi's international trade has increased sharply. India's major trading partners are the United States, China, United Arab Emirates, Saudi Arabia, Switzerland, Germany, Hong Kong, Indonesia, South Korea and Malaysia among others.

Per capita income jumps over 500 times

Since 1950, the per capita income (PCI) has jumped over 500 times. In 1950, it stood at Rs 265. It increased to Rs 1,28,829 in 2020-21. In 2000-01, PCI was at Rs 18,667.

The foreign reserves have increased over 300 times since India got freedom from 200 years of colonial rule. India's forex reserves have also shot since independence from $1.82 billion in 1951-52 to $572.978 billion till August 5, 2022. Gold reserves stand at USD 40.313 billion till August 5.

Not only this, but India's stock market has also come a long way since independence. The Bombay Stock Exchange (BSE) Sensex has grown from 100 points to 59,000 points today. Reliance Industries, the largest listed company in the country by market capitalisation, had issued equity shares of Rs 10 each in November 1977. The stocks presently cost Rs 2,855 apiece.

Besides this, it is worth mentioning that India is the world's largest manufacturer of generic drugs. India also fulfils over 50% of the global demand for vaccines. It is also the world's second-largest cement producer, second-largest coal producer, second-largest steel producer, and third-largest electricity producer.