Economy of India in the context of "Corruption in India"

Balance of trade is the difference between the monetary value of a nation's exports and imports of goods over a certain time period. Sometimes, trade in services is also included in the balance of trade but the official IMF definition only considers goods. The balance of trade measures a flow variable of exports and imports over a given period of time. The notion of the balance of trade does not mean that exports and imports are "in balance" with each other.

If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance. As of 2016, about 60 out of 200 countries have a trade surplus. The world's largest trade surpluses are held by China ($823 billion), Germany ($226 billion), and Russia ($120 billion), while the largest trade deficits are held by the United States ($1.15 trillion), United Kingdom ($271 billion), and India ($241 billion).

Zoroastrianism, an Iranian religion, has been present in India for thousands of years. Though it split into a separate branch, it shares a common origin with Hinduism and other Indian religions, having been derived from the Indo-Iranian religion. Though it was once the majority and official religion of the Iranian nation, Zoroastrianism eventually shifted to the Indian subcontinent in light of the Muslim conquest of Iran, which saw the Rashidun Caliphate annex the Sasanian Empire by 651 CE. Owing to the persecution of Zoroastrians in the post-Sasanian period, a large wave of Iranian migrants fled to India, where they became known as the Parsi people, who now represent India's oldest Zoroastrian community. Later waves of Zoroastrian immigration to India took place over the following centuries, with a spike in the number of these refugees occurring during the Safavid conversion of Iran to Shia Islam and again during the reign of the Qajar dynasty, whose persecution of Zoroastrians prompted many to flee to British India, where they became known as the Irani people. Though Zoroastrian, the Parsis and the Iranis are culturally, linguistically, and socially distinct from each other due to their inception in separate periods of migration.

The comparatively liberal atmosphere of India and the protection provided by historical Indian kingdoms to their Zoroastrian subjects enabled the religion to flourish outside of the Iranian plateau. Today, India is home to the largest Zoroastrian population in the world, and despite their overall low population number, Indian Zoroastrians have had a significant impact on India's economy, culture, politics and military, and also played a major role in the Indian independence movement.

An emerging market (EM, also an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or were in the past. The term "frontier market" is used for developing countries with smaller, riskier, or more illiquid capital markets than "emerging". As of 2025, the economies of China and India are considered the largest emerging markets. The ten largest emerging economies by nominal GDP are 4 of the 9 BRICS countries (Brazil, Russia, India, and China) along with Mexico, South Korea, Indonesia, Turkey, Saudi Arabia, and Poland. The inclusion of South Korea, Poland, and sometimes Taiwan are debatable, given they are no longer considered emerging markets by the IMF and World Bank (for Korea and Taiwan). If we exclude South Korea, Poland and/or Taiwan, this list of top ten emerging markets would include Argentina and Thailand.

Emerging market economies' share of global PPP-adjusted GDP has risen from 27 percent in 1960 to around 53 percent by 2013. When countries "graduate" from their emerging status, they are referred to as emerged markets, emerged economies or emerged countries, where countries have developed from emerging economy status, but have yet to reach the technological and economic development of developed countries. According to a 2008 article in The Economist, many people find the term "emerging markets" outdated, but no alternate term has gained wide use. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion.

Poverty in India remains a major challenge despite overall reductions in the last several decades as its economy grows. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak.According to the World Bank, India experienced a significant decline in the prevalence of extreme poverty from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period. The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively. According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."

The World Bank has been revising its definition and benchmarks to measure poverty since 1990–1991, with a $0.2 per day income on purchasing power parity basis as the definition in use from 2005 to 2013. Some semi-economic and non-economic indices have also been proposed to measure poverty in India. For example, in order to determine whether a person is poor, the Multi-dimensional Poverty Index places a 33% weight on the number of years that person spent in school or engaged in education and a 6.25% weight on the financial condition of that person.

The mining industry in India is a major economic activity which contributes significantly to the economy of India. The gross domestic product (GDP) contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector, it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to around 700 individuals.

As of 2012, India is the largest producer of sheet mica, 2015 the fourth largest producer of iron ore, alumina, chromite, and bauxite in the world. A coal and iron ore project is in the fifth largest reserve in world. India's metal and mining industry was estimated to be $106.4 billion in 2010.