India Third Largest Economy After U.S. And China

Per capita expenditure is very low in India

Per capital is often used to express a country or region's income level or economic output, such as GDP. Due to poor government policy for many years, the Indian economy struggled a lot. Due to the serious impact on the economy, in the early nineties the government decided to liberalize the economy to encourage growth. They have succeeded in doing this to a large extent. Although agriculture still remains the largest industry in the country, the growth has mainly been in the service and manufacturing sectors. But when compared to countries like Indonesia per capita expenditure of India is $4735 which is the lowest.

India’s economy among the seven cheapest economies

Despite its high inflation rate, India is found to be the cheapest major economy in the world, according to a survey on global prices of products that are comparable across countries as reported in Economic Times. A weaker Indian rupee has allowed India to remain the cheapest major economy in the world despite persistently suffering the highest inflation rate according to the banking giant Deutsche Bank. "The fact that India still runs a large current account deficit illustrates that being competitive is more than just being cheap," said the report titled 'The Random Walk, Mapping the World's Prices 2014'.