Strategies of India used to promote both economic growth and economic developmentEconomic growth refers to an increase in the quantity of goods and services produced per capita over a period of time. Economic development is the process by which a nation improves the economic, political and social well-being of its people. Together, economic growth and development constitute a country's key to GDP expansion and growth. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay. A nominal GDP of $2,250.987 billion, an increase from the 8th rank in 2013. By 2020, India's ranking is estimated to rise to $2,250.987 billion. the 5th largest economy in the world. In terms of purchasing power parity (PPP) of GDP, India is ranked 3rd and is among the top 20 global traders according to the World Trade Organization (WTO). India has become a global economic power and is considered one of the economic and political engines of the international economy, particularly in trade and global governance. However, in the absence of an effective legal and regulatory system, corruption remains a serious obstacle. Despite India's rapid success in global trade and the country's growth, the Indian government has failed in its reforms of land ownership and taxes on goods and services. India's history as an independent, socialist-inspired country was influenced by its colonial experience. Before India's economic liberalization in 1991, the Indian government attempted to close its economy to the outside world. This was achieved by making it impossible to convert Indian rupees (India's currency) into other currencies, applying high customs duties and import licenses, which prevented the arrival of foreign goods on the market. India also implemented policies in which businesses required licenses to invest and expand their industries, making it difficult for the economy to grow to its potential and instead leaving it in a bind with a number of 'companies authorized to operate and no external exposure to other countries. The Indian government believed that the Indian economy would grow and develop by relying solely on domestic markets and the absence of international trade. However, this has proven to be false as globalization and world trade play an important role in the economic growth and development of a country, enabling it to grow and reach its full potential with the help of other countries. The Indian government saw significant development before the economic crisis. India's liberalization in 1991 was initiated by the fall of the Soviet Union, one of India's largest trading partners, and the Gulf War which led to a rapid increase in oil prices and India found itself in crisis and with large debts. This led to India receiving a large loan of $1.8 billion from the International Monetary Fund (IMF), which in return demanded that India deregulate its policies. Economic liberalization in India aimed to make the economy more market oriented and expand the role of private and foreign investment, to steer India in the right direction in terms of reducing customs duties and interest rates, to put an end to public monopolies, to deregulate markets and..