India economic policy after independence was influenced by socialism. Policy designed and implemented by a central planning body, all major sectors like mining, airlines, telecommunications, insurance, banks, steel, power generation, refineries, electrical/electronic tools and many more were nationalised. Policies were more based on protectionism, added with excessive regulations and licenses to setup businesses. This resulted in low annual growth rate of the economy, state-owned companies made huge losses, infrastructure deteriorated and corruption flourished under license raj.

With economic liberalization, India's economy became more market-oriented and there were more private and foreign investments. There is increase in countries GDP, per capita income, household savings, forex reserves, exports etc. With this there rises new income and employment generating sectors like IT, BPO, Telecom and Retail.

India has large labour pool and vast amount of natural resources be it minerals or agriculture products, which provides comparative advantage in production of certian goods against other countries. Like textile industry, which need semi and unskilled labour to mass produce many of its items. Being half of working class involved in agriculture, the advantage is enjoyed with large exports of castor-oil, silk, turmeric, cotton-products, vegetable products, rubber etc. With de-regulation and liberalization iron and steel sector gained aided with low-labour cost, free export and reduction in import duty of raw materials. Other sectors impacted positively due to these reasons are machinery, chemical, arms, vehicles, aircraft, transport equipment and mineral products.

There are still many sectors present those needed more reforms, infrastructure like transport, power need to be strengthened. More focus need to be given toward agriculture, as this will decrease