India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation ,privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country’s growth ,which has averaged more than 7 percent per year since 1997. India’s diverse economy encompasses traditional village farming, mod-ern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more then half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India’s output, with only one-third of its labour force . India has capitalized on its large educated English-speak population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis—in large part because of stong domestic demand –and growth exceed 8 percent year-on-year in real terms. However India’s economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government’s fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. And a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India’s medium-term growth outlook is positive due to a young population and corresponding low dependency ratio healthy savings and investment rates and increasing integration into the global economy India has many long-term challenges that it has not yet fully addressed including widespread poverty inadequate physical and social infrastructure limited non-agricultural employment opportunities scarce access to quality basic and higher education and accommodating rural-to-urban migration.