Economy in India

India is a country of extremes. There are extreme, lavish palaces on one spectrum and extreme poverty on the other spectrum. The economy of India has fluctuated over the last decade as the country has had to deal with a global economic crisis. The country relies heavily on foreign financial aid in order to survive, but there is also a certain percentage of the country that has wealth. The rupee is the legal tender for India and it's separated into the paise. While the lowest paise available is 10, most markets will not accept any paise below 50. India dabbles in a number of different industries and relies heavily on exports and imports in order to keep the economy stable.

Importing and Exporting

India has import and export agreements with the United Arab Emirates, Hong Kong, China, Germany, Singapore, Saudi Arabia and Australia. To earn money for the economy, India exports petroleum, natural stones and minerals, iron, steel, clothing, and automobiles. To help with the country's basic needs, India imports oil, machinery, fertilizer, and certain chemicals. This says a lot for a country that used to boast a closed economy and did not have export or import agreements with any other country.

General Economy of India

India has a high public debt, putting out much more per year than it makes. The public debt accounts for more than 70% of the gross domestic product. India accepts quite a bit of foreign financial aid, taking more than two billion in aid in 2010. While there is a small percentage of the population that enjoys extreme wealth, almost half of the population of India resides in either poverty or a low economic situation.

Many children of India suffer from a lack of nutrition due to the inability of their parents to afford nutritious foods. India traditionally uses the caste system, and some of the people are considered the untouchables – people who do the hard labor that no one else wants for little to no money. This has led to areas in India being populated with small homes, many times designed from whatever materials the family can find. It's not uncommon for tourists to see homes made from rags and metal sheets.

Agriculture is the number one employer of Indian people. The second biggest industry is textiles as India is known for its export of clothing. The automobile industry is rapidly growing, becoming a promising section of employment for many people. Right now, many Indian people rely on other countries in order to make a small living. The United States and Britain have begun outsourcing IT work and telecommunication work to India because they can get educated workers for much less money. It's not uncommon for foreign employers to just a few dollars a day to outsourced workers.

The Indian government works to create a stable economic environment, but the country must still rely heavily on foreign aid. Due to its large population, the country just can't provide the economic resources needed for every citizen. This has led to an array of economic levels among citizens and increased the need for foreign aid.