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The economy of India is characterised as a developing market economy.[40][41] It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the IMF, on a PER CAPITA income basis, India ranked 142nd by GDP (nominal) and 124th by GDP (PPP) in 2020.[42] From independence in 1947 until 1991, successive governments promoted protectionist economic policies with EXTENSIVE state intervention and regulation which is characterised as Dirigism.[43][44] The end of the Cold War and an ACUTE balance of payments crisis in 1991 led to the adoption of a broad program of economic liberalisation.[45][46] Since the start of the 21st century, annual average GDP growth has been 6% to 7%,[41] and from 2014 to 2018, India was the world's fastest growing major economy, surpassing China.[47][48] Historically, India was the largest economy in the world for most of the two millennia from the 1st until 19th century.

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