A total of 140 crore people live in India, so why is India's GDP so low?




Santhakumar V

The value of production by each Indian is small compared to may other countries of the world.

The capital embedded in the production of each Indian is very small.






Kalyan Subbu

To cut the long answer short, India’s economy had not been growth-driven post-1947 until the BoP crisis of 89–91. As a relief to the crisis-hit economy, the then GoI led by PM Narasimha Rao, with the support of key opposition parties(he was heading a minority Congress government with outside issue-based support of other parties) decided to de-regulate the Indian economy. Until then India’s economy was based on the Nehruvian socialist model. Indian economy.


Post liberalization of 1991, with the license raj being shelved in several industry sectors, foreign investments were invited and the growth momentum picked up. IT, automotive, power, and BFSI were some of the sectors in which foreign investors showed interest. The period between 1996 to 1999 was that of political instability leading to a slowdown in economic growth. In 1999, the first BJP government led by Mr. Vajpayee assumed office, and the next five years were spent boosting infrastructure development. Vajpayee continued with the reforms initiated by the erstwhile Congress-led government. GDP growth again picked up but was short-lived only up to 2004. The India Shining campaign spearheaded by the BJP didn’t propel the party to power in the general elections that year.


In the year 2004, with the lack of a clear mandate for any single party, an alliance led by Congress by the name of UPA assumed power. There was much anticipation from this government as it was headed by Dr. Manmohan Singh, who was regarded as one of the architects of the economic reforms of 1991. Singh was at the helm for two terms from 2004 to 2014. His drawback was that he was a consensual candidate of UPA partners and didn’t have a mandate on his own. During this period, the PMO became so compromised that there was an extra-constitutional authority created by the name of the Chairperson of UPA to have a greater say on policy matters than the PM himself. The treasury bench in Parliament owed their loyalty to this extra-constitutional authority than the head of the government. The prime minister became a mute spectator to a series of scams spearheaded by his cabinet colleagues. The situation was so grave that by 2013, India’s economy was rated under “Fragile Five” by global credit agencies with its banking system on the verge of collapse due to accumulated NPAs during the 9-year tenure of the UPA government. Added to this, as an after-effect of the 2008 global meltdown, inflation was at its high in double digits, rupee tumbled against the dollar and there was total policy paralysis on the part of the government to take any key economic decisions.



In the 2014 general elections, the BJP attained power with Mr. Narendra D. Modi at the helm as the PM of India. The period between 2014 to the present(Nov 2023) is the period when India has seen consistent GDP growth notwithstanding the two-year downturn owing to the global pandemic and the subsequent geopolitical issues affecting the global economy. Today India attained a GDP size of $ 4 trillion and will be a $ 5 trillion economy in 2025–26.


In a nutshell, 75 years of growth has been achieved only during the 9-year tenure of NDA under Mr. Modi. Hence the GDP is yet to grow proportionately to the size of our population. By 2030, India will attain a $ 10 trillion GDP and by 2047, the centenary of our Independence, India will be a developed country with a $ 30+ trillion GDP.





Mohan Kalaiselvan

Our technology is old, people are unskilled and our political leaders are substandard. So the productivity is low.

We give a lot of respect to our farmers but do nothing to change the age old unproductive agricultural practices. That keeps the productivity of agriculture low.

We have not developed the Industrial sector fast enough to absorb excess agricultural workers so that agriculture sector couldn't be modernised.




We hardly spent anything on education. Even what we spend is not monitored well for quality.

The Research and Development is just a joke on India, enriching few career scientists who actually stiffle real research.






Sandeepan Bose

70% of them are subsistence farmers or landless labour. They hardly consume any manufactured goods other than clothes and footwear.

What ever GDP we have is attributed to 4% of 140 crores who pay substantial income tax.

26% non-agricultural sector dependent population has low productivity.

Productivity is the ability to add value.





An unskilled labour in cities and towns makes max Rs 500 a day. An Uber driver makes Rs 1000 a day.

A few days ago I hired a driver to drive my car for an airport pickup late at night. He charged Rs 400. I texted him my address but he wanted location. I sent it. I asked him why doesn't he drive an Uber. He said he can't read English.






Siddharth Verma

I will compare Indian GDP with the Japan GDP.

First of all we need to understand what are the various components of the GDP of a country.

GDP= Consumer spending + Investment made by Industries +Excess of Exports over Imports + Government Spending.




1) Consumer spending is the biggest component of the GDP of a country. Consumer confidence has a very significant bearing on economic growth. Consumer spending in India is approx 1.54 trillion USD while it is approx 2.7 trillion USD for Japan.

2) Investment made by Industries in India for 2014 was approx 0.2 trillion USD and for Japan it is 1.0 trillion USD

3) Balance of trade for India is approx -0.133 trillion USD and for Japan it is -0.087 trillion USD

4) Government Expenditure in India is 0.292 trillion USD while in Japan it is 0.9 trillion USD.

1) 消费支出是一个国家GDP的最大组成部分。消费者信心对经济增长有非常重要的影响。印度的消费支出约为1.54万亿美元,而日本约为2.7万亿美元。

2) 印度工业投资约为0.2万亿美元,日本为1.0万亿美元

3) 印度的国际贸易差额约为-0.133万亿美元,日本为-0.087万亿美元

4) 印度的政府支出为0.292万亿美元,日本为0.9万亿美元。

So, Now you can visualize what are the factors which make Indian gdp  look smaller in front of GDP of country like Japan and other.






India is one of the major economies among the emerging countries.


India is at 3rd position after China and Japan among Asian countries. India shares 8.50% of total Asia's GDP (nominal).





Tehleel T

The pandemic has had a significant impact on India's economy, leading to a contraction in GDP in 2020. The pandemic and related lockdowns led to a slowdown in economic activity across sectors, including manufacturing, construction, and services. Even before the pandemic, there was a slowdown in demand in various sectors due to factors such as a decline in consumer confidence, reduced investment, and low job creation. India has been grappling with various structural issues that have hindered its economic growth, including a complex tax system, bureaucratic hurdles, and a lack of infrastructure development.





Rajeev Kumar Jaiswal

When will India have a GDP of 50 trillion?

Whole India is going through lockdown so all the supply chain deemand and supply is worstly affected so nearly all the bussinesses is under loss or not working now. It's been 2 months and still many factories have not started to operate into normal function properly.



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