India is one of the fastest-growing major economies in the world. As of recent estimates, it ranks as the fifth-largest economy by nominal GDP and the third-largest by Purchasing Power Parity (PPP). While historical reliance was on agriculture, the modern economy is largely driven by the services sector, which accounts for over half of India's GDP, fueled notably by information technology, telecommunications, and financial services.
Despite its massive overall wealth, India's high population means its per capita income remains that of a developing nation, placing it in the lower-middle-income category. Cost of living is generally low compared to Western standards, though it is rising in tier-one cities. Future economic development is heavily focused on expanding manufacturing (through initiatives like "Make in India"), improving digital and physical infrastructure, and transitioning toward renewable energy.