Economy in India January 30, 2015

Type of Economy in India  India is a mixed economy  They have a blend of all three types: market, traditional, and command  India began loosening government control of some of it’s industries in the 1990s  That allowed for the growth of entrepreneurship, especially small, local businesses  India’s middle class is also growing because of the economy’s movement towards a market-type  There is also a strong agriculture industry, which brings in a more traditional-type economy  India is a mixed economy  They have a blend of all three types: market, traditional, and command  India began loosening government control of some of it’s industries in the 1990s  That allowed for the growth of entrepreneurship, especially small, local businesses  India’s middle class is also growing because of the economy’s movement towards a market-type  There is also a strong agriculture industry, which brings in a more traditional-type economy

Farming  About half of India’s 1 billion people work in agriculture or farming.  Many are using farming techniques that have not been changed for centuries, such a plowing with animals and hand-planting the seeds  In the 1960s, India’s government tried to modernize the agriculture industry  This was called the Green Revolution  They brought in new types of seeds and other farm equipment  They also made pesticides and fertilizer more widely available  However, the fertilizers and pesticides led towards pollution of India’s rivers  Many farmers also stopped using the new farm equipment because it was very expensive  About half of India’s 1 billion people work in agriculture or farming.  Many are using farming techniques that have not been changed for centuries, such a plowing with animals and hand-planting the seeds  In the 1960s, India’s government tried to modernize the agriculture industry  This was called the Green Revolution  They brought in new types of seeds and other farm equipment  They also made pesticides and fertilizer more widely available  However, the fertilizers and pesticides led towards pollution of India’s rivers  Many farmers also stopped using the new farm equipment because it was very expensive

Technology and Service Industries  India now leads the South Asian region in the growth of technology and service industries  It is one of the world’s top ten industrial nations  India has invested heavily in human capital and its education system in the past several decades  This has allowed people to get jobs in the sciences, computers, industry, and research  There is a booming electronics business: computers, software, televisions, and other products are made there  Thousands of people are employed in a service industry of some type  These companies handle technology questions, airline reservations, and retail sales for customers around the world  India now leads the South Asian region in the growth of technology and service industries  It is one of the world’s top ten industrial nations  India has invested heavily in human capital and its education system in the past several decades  This has allowed people to get jobs in the sciences, computers, industry, and research  There is a booming electronics business: computers, software, televisions, and other products are made there  Thousands of people are employed in a service industry of some type  These companies handle technology questions, airline reservations, and retail sales for customers around the world

Capital Goods  Because of India’s booming technology industries, the country has invested heavily in capital goods  The government has put an enormous amount of money into investing in these capital goods  New equipment for the agriculture industry was purchased in the 1960s  India’s cities are home to some of the world’s most advanced communications and computer technology on the Asian continent  Because of India’s booming technology industries, the country has invested heavily in capital goods  The government has put an enormous amount of money into investing in these capital goods  New equipment for the agriculture industry was purchased in the 1960s  India’s cities are home to some of the world’s most advanced communications and computer technology on the Asian continent

Arts in India’s Economy  One of the largest film industries in the world is located in India  This industry, called Bollywood films, is extremely popular across Asia with some films becoming popular in the U.S. and Europe as well  This has also contributed to India’s growing middle class because people are able to get jobs working in this industry  One of the largest film industries in the world is located in India  This industry, called Bollywood films, is extremely popular across Asia with some films becoming popular in the U.S. and Europe as well  This has also contributed to India’s growing middle class because people are able to get jobs working in this industry

Other economic activities  Coal is one of India’s most important natural resources  A natural resource is something that is found in the environment  Water, trees, oil, and minerals are examples of natural resources  It is an important fuel and energy source for the country, but it contributes to the air pollution issue  There are some oil deposits, but not enough for India to export it to make money  Most of the oil found in India is used within the country  Coal is one of India’s most important natural resources  A natural resource is something that is found in the environment  Water, trees, oil, and minerals are examples of natural resources  It is an important fuel and energy source for the country, but it contributes to the air pollution issue  There are some oil deposits, but not enough for India to export it to make money  Most of the oil found in India is used within the country

Questions  1. Which of the types of economies is India a blend of?  2. What allowed for the growth of entrepreneurship in India?  3. Why is India’s middle class growing?  4. Why can parts of India’s economy still be classified as traditional?  5. How much of India’s population work in agriculture?  6. What was the Green Revolution?  7. What did the Green Revolution do for India’s agriculture industry?  8. Why did many of India’s farmers stop using the new farm equipment?  1. Which of the types of economies is India a blend of?  2. What allowed for the growth of entrepreneurship in India?  3. Why is India’s middle class growing?  4. Why can parts of India’s economy still be classified as traditional?  5. How much of India’s population work in agriculture?  6. What was the Green Revolution?  7. What did the Green Revolution do for India’s agriculture industry?  8. Why did many of India’s farmers stop using the new farm equipment?

More Questions…  9. What does India lead the South Asian region in?  10. What has India’s investment in human capital allowed the people to do?  11. What type of electronic products are made there?  12. What do people who work in service industries do?  13. Why has India invested heavily in capital goods?  14. What is the name of India’s film industry?  15. How has the film industry contributed to the growth of the middle class?  16. What is one of India’s most important natural resources?  17. What is a natural resource?  9. What does India lead the South Asian region in?  10. What has India’s investment in human capital allowed the people to do?  11. What type of electronic products are made there?  12. What do people who work in service industries do?  13. Why has India invested heavily in capital goods?  14. What is the name of India’s film industry?  15. How has the film industry contributed to the growth of the middle class?  16. What is one of India’s most important natural resources?  17. What is a natural resource?