<P> The economy of India is an underdeveloped mixed economy . It is the world 's seventh - largest economy by nominal GDP and the third - largest by purchasing power parity ( PPP ) . The country ranks 141st in per capita GDP ( nominal ) with $1723 and 123rd in per capita GDP ( PPP ) with $6,616 as of 2016 . After 1991 economic liberalisation , India achieved 6 - 7 % average GDP growth annually . In FY 2015 India 's economy became the world 's fastest growing major economy surpassing China . The long - term growth prospective of the Indian economy is positive due to its young population , corresponding low dependency ratio , healthy savings and investment rates , and increasing integration into the global economy . </P>
<P> The economy of India is an underdeveloped mixed economy . It is the world 's seventh - largest economy by nominal GDP and the third - largest by purchasing power parity ( PPP ) . The country ranks 141st in per capita GDP ( nominal ) with $1723 and 123rd in per capita GDP ( PPP ) with $6,616 as of 2016 . After 1991 economic liberalisation , India achieved 6 - 7 % average GDP growth annually . In FY 2015 India 's economy became the world 's fastest growing major economy surpassing China . The long - term growth prospective of the Indian economy is positive due to its young population , corresponding low dependency ratio , healthy savings and investment rates , and increasing integration into the global economy . </P>
rank of indian economy in terms of nominal gdp
rank of indian economy in terms of nominal gdp
seventh - largest
seventh - largest