Impact of technology on Indian economy.

The economy of India is the eleventh largest economy in the world by

nominal GDP and the fourth largest by purchasing power parity (PPP).
Following strong economic reforms from the socialist inspired economy of a
post-independence Indian nation, the country began to develop a fast-paced
economic growth, as free market principles were initiated in 1990 for
international competition and foreign investment. India is an emerging
economic power with a very large pool of human and natural resources, and a
growing large pool of skilled professionals. Economists predict that by
2020,India will be among the leading economies of the world.

India was under social democratic-based policies from 1947 to 1991. The
economy was characterized by extensive regulation, protectionism, public
ownership, pervasive corruption and slow growth Since 1991, continuing
economic liberalization has moved the country toward a market-based
economy. A revival of economic reforms and better economic policy in 2000s
accelerated India's economic growth rate.. However, the year 2009 saw a
significant slowdown in India's GDP growth rate to 6.8% as well as the return
of a large projected fiscal deficit of 6.8% of GDP which would be among the
highest in the world.

India's large service industry accounts for 55% of the country's Gross
Domestic Product (GDP) while the industrial and agricultural sector
contribute 28% and 17% respectively. Agriculture is the predominant
occupation in India, accounting for about 52% of employment. The service
sector makes up a further 34%, and industrial sector around 14%.The labor
force totals half a billion workers. Major agricultural products include rice,
wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo,
sheep, goats, poultry and fish Major industries include telecommunications,
textiles, chemicals, food processing, steel, transportation equipment, cement,
mining, petroleum, machinery, information technology enabled services and
pharmaceuticals.

India's per capita income (nominal) is $1,030, ranked 139th in the world,
while its per capita (PPP) of US$2,940 is ranked 128th. Previously a closed
economy, India's trade has grown fast India currently accounts for 1.5% of
World trade as of 2007 according to the WTO. According to the World Trade
Statistics of the WTO in 2006, India's total merchandise trade (counting
exports and imports) was valued at $294 billion in 2006 and India's services
trade inclusive of export and import was $143 billion. Thus, India's global
economic engagement in 2006 covering both merchandise and services trade
was of the order of $437 billion, up by a record 72% from a level of $253
billion in 2004. India's trade has reached a still relatively moderate share 24%
of GDP in 2006, up from 6% in 1985.

Technology :

Technology is the usage and knowledge of tools, techniques, crafts, systems

or methods of organization. The word technology comes from the Greek
technología — techno means an 'art', 'skill' or 'craft' and -logía (-λογία)means
the study of something, or the branch of knowledge of a discipline.[1] The term
can either be applied generally or to specific areas: examples include
construction technology, medical technology, or state-of-the-art technology or
high technology. Technologies can also be exemplified in a material product,
for example an object can be termed state of the art.

Technologies significantly affect human as well as other animal species' ability

to control and adapt to their natural environments. The human species' use of
technology began with the conversion of natural resources into simple tools.
The prehistorical discovery of the ability to control fire increased the available
sources of food and the invention of the wheel helped humans in travelling in
and controlling their environment. Recent technological developments,
including the printing press, the telephone, and the Internet, have lessened
physical barriers to communication and allowed humans to interact freely on
a global scale. However, not all technology has been used for peaceful
purposes; the development of weapons of ever-increasing destructive power
has progressed throughout history, from clubs to nuclear weapons.

Impact of Technology on Indian Economy : India’s economy based on the

factors such like as agriculture, industries, Banking,

Agriculture

India ranks second worldwide in farm output. Agriculture and allied sectors
like forestry, logging and fishing accounted for 17% of the GDP in 2009,
employed 52% of the total workforce and despite a steady decline of its share
in the GDP, is still the largest economic sector and plays a significant role in
the overall socio-economic development of India. Yields per unit area of all
crops have grown since 1950, due to the special emphasis placed on
agriculture in the five-year plans and steady improvements in irrigation,
technology, application of modern agricultural practices and provision of
agricultural credit and subsidies since Green revolution in India. However,
international comparisons reveal the average yield in India is generally 30%
to 50% of the highest average yield in the world.

India is the largest producer in the world of milk, cashew nuts, coconuts, tea,
ginger, turmeric and black pepper. It also has the world's largest cattle
population: 193 million. It is the second largest producer of wheat, rice, sugar,
cotton, silk, peanuts and inland fish. It is the third largest producer of tobacco.
India is the largest fruit producer, accounting for 10% of the world fruit
production. It is the leading producer of bananas, sapotas and mangoes.

Impact of science and technology on agriculture :

Banking and finance

The Indian money market is classified into: the organized sector (comprising
private, public and foreign owned commercial banks and cooperative banks,
together known as scheduled banks); and the unorganized sector (comprising
individual or family owned indigenous bankers or money lenders and non-
banking financial companies (NBFCs)). The unorganized sector and
microcredit are still preferred over traditional banks in rural and sub-urban
areas, especially for non-productive purposes, like ceremonies and short
duration loans.

Mumbai is the financial and commercial capital of India. Shown here is the
World Trade Centre of Mumbai

Prime Minister Indira Gandhi nationalized 14 banks in 1969, followed by six

others in 1980, and made it mandatory for banks to provide 40% of their net
credit to priority sectors like agriculture, small-scale industry, retail trade,
small businesses, etc. to ensure that the banks fulfill their social and
developmental goals. Since then, the number of bank branches has increased
from 10,120 in 1969 to 98,910 in 2003 and the population covered by a
branch decreased from 63,800 to 15,000 during the same period. The total
deposits increased 32.6 times between 1971 to 1991 compared to 7 times
between 1951 to 1971. Despite an increase of rural branches, from 1,860 or
22% of the total number of branches in 1969 to 32,270 or 48%, only 32,270
out of 5 lakh (500,000) villages are covered by a scheduled bank.

The public sector banks hold over 75% of total assets of the banking industry,
with the private and foreign banks holding 18.2% and 6.5% respectively Since
liberalization, the government has approved significant banking reforms.
While some of these relate to nationalized banks (like encouraging mergers,
reducing government interference and increasing profitability and
competitiveness), other reforms have opened up the banking and insurance
sectors to private and foreign players.

More than half of personal savings are invested in physical assets such as land,
houses, cattle, and gold Indian has the highest saving rate in the world at 36
percent.