The Asian Crisis; China & India: Difference between revisions

Nevertheless, according to late 2005 indicators, India is the fourth strongest economy in the world measured by the purchase power parity (PPP), with an annual increase in the GDP of 8.1%. Services, particularly financial services, are the main source of the economic growth. After independence, India followed mainly socialist economic principles, so that the government controlled most of the industry, imports and exports, and foreign direct investment. These connections have relaxed after liberalisation. India is now facing the problems of overpopulation and unemployment. Its infrastructures are under-developed. The stability and food self-reliance are threatened by a worsening water supply balance, especially for agricultural irrigation.