India emerges as the 3rd largest economy in terms of Purchasing Power Parity (PPP), with its share in the world GDP growing to 6.4% in 2006.
Only USA and China are ahead of India, according to the mid -year review tabled in parliament on Dec. 7, 2007.
The Review says that the economic activity expanded at a substantial pace during the first half of the current fiscal. Industry remained one of the main drivers of the economic growth, but it moderated to 9.2 % during April to September 2007 as compared to 11.1 % during the same period last year.
Exports in Dollar terms continued to maintain a healthy growth of 18.5 % despite appreciating Rupee. The review unveils that high returns on equity and higher interest rates with rise in global private capital flows have resulted in the country receiving large capital. This includes Foreign Direct Investments (FDI), Portfolio Investments (PI) and External Commercial Borrowings (ECB).
In the 10th Five Year Plan, the GDP growth averaged 7.6% annually, which is higher than the growth of 5.5% in the 9th Plan. The Per Capita Income (PCI) growth average at 6.1% per annum in the 10th Plan as against 3.4% in the previous plan.
Service sector continues to be mainstay of the economy and the resurgence in industrial activity has provided stability to the growth process.