Indian Economy Overview: India's diverse economy encompasses traditional village farming， modern agriculture， handicrafts， a wide range of modern industries， and a multitude of Services are the major source of economic growth， accounting for more than half of India's output with less than one third of its labor Slightly more than half of the work force is in agriculture， leading the United Progressive Alliance (UPA) government to articulate a rural economic development program that includes creating basic infrastructure to improve the lives of the rural poor and boost economic The government has reduced controls on foreign trade and Higher limits on foreign direct investment were permitted in a few key sectors， such as However， tariff spikes in sensitive categories， including agriculture， and incremental progress on economic reforms still hinder foreign access to India's vast and growing Privatization of government-owned industries remains stalled and continues to generate political debate; populist pressure from within the UPA government had restrained needed The economy has posted an average growth rate of more than 7% in the decade since 1997， reducing poverty by about 10 percentage India achieved 5% GDP growth in 2006， 0% in 2007， and 3% in 2008， significantly expanding manufactures through late India also is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software Strong growth combined with easy consumer credit， a real estate boom， and fast-rising commodity prices fueled inflation concerns from mid-2006 to August Rising tax revenues from better tax administration and economic expansion helped New Delhi make progress in reducing its fiscal deficit for three straight years before skyrocketing global commodity prices more than doubled the cost of government energy and fertilizer The ballooning subsidies， amidst slowing growth， brought the return of a large fiscal deficit in In the long run， the huge and growing population is the fundamental social， economic， and environmental
