section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  According to the International Monetary Fund (IMF), the Indian economy in 2024 was nominally worth $3.94 trillion; it was the fifth-largest economy by market exchange rates and is, at around $15.0 trillion, the third-largest by purchasing power parity (PPP). With its average annual GDP growth rate of 5.8% over the past two decades, and reaching 6.1% during 2011–2012, India is one of the world's fastest-growing economies. However, due to its low GDP per capita—which ranks 136th in the world in nominal per capita income and 125th in per capita income adjusted for purchasing power parity (PPP)—the vast majority of Indians fall into the low-income group. Until 1991, all Indian governments followed protectionist policies that were influenced by socialist economics. Widespread state intervention and regulation largely walled the economy off from the outside world. An acute balance of payments crisis in 1991 forced the nation to liberalise its economy; since then, it has moved increasingly towards a free-market system by emphasising both foreign trade and direct investment inflows. India has been a member of World Trade Organization since 1 January 1995.
  
  The 522-million-worker Indian labour force is the world's second largest, as of 2017. The service sector makes up 55.6% of GDP, the industrial sector 26.3% and the agricultural sector 18.1%. India's foreign exchange remittances of US$100 billion in 2022, highest in the world, were contributed to its economy by 32 million Indians working in foreign countries. In 2006, the share of external trade in India's GDP stood at 24%, up from 6% in 1985. In 2008, India's share of world trade was 1.7%; In 2021, India was the world's ninth-largest importer and the sixteenth-largest exporter. Between 2001 and 2011, the contribution of petrochemical and engineering goods to total exports grew from 14% to 42%. India was the world's second-largest textile exporter after China in the 2013 calendar year.
  
  Averaging an economic growth rate of 7.5% for several years before 2007, India has more than doubled its hourly wage rates during the first decade of the 21st century. Some 431 million Indians have left poverty since 1985; India's middle classes are projected to number around 580 million by 2030. In 2023, India's consumer market was the world's fifth largest. India's nominal GDP per capita increased steadily from US$308 in 1991, when economic liberalisation began, to US$1,380 in 2010, to an estimated US$2,731 in 2024. It is expected to grow to US$3,264 by 2026.