Final answer:
India's economic influence is significant as the second fastest growing economy worldwide after China, undergoing reforms to integrate with the global economy and expanding in sectors such as information services and manufacturing.
Step-by-step explanation:
The global influence of India as an economic power has seen a significant rise, especially in the past decade, where it has been the second fastest growing economy in the world following China. India's rapid economic expansion has influenced the world economy in meaningful ways, despite a low average per capita income and the fact that approximately one-fourth of the Indian population lives in poverty. The World Bank classifies India as a low-income economy.
India's economic model since independence has been centrally controlled by the government, with a focus on controlling private sector development, foreign trade, and foreign investment. Since the 1990s, economic reforms have aimed to reduce this control, leading to privatization of public firms and opening up the market to globalization. The information services, healthcare, and industrial sectors have seen substantial growth.
Despite disparities between affluent cities and poor rural areas, urban centers in India have leveraged opportunities in the global economy, enhancing their manufacturing and industrial capabilities. This includes becoming a major manufacturer for vehicles and high-tech industries. The impact of globalization has created a dynamic cultural economy, with extended networks influencing local and global communities, as noted by scholar Arjun Appaduraian.
Historically, India's economy was impacted by British colonial rule through the British East India Company, which controlled trade and exploited commodities like cotton, spices, and opium. The East Indian economy in particular has remained stagnant with low income levels and less integration with the global economy. Yet, by the turn of the century, India has emerged as a key player in the global landscape, establishing its economic presence amidst the challenges posed by poverty and economic disparities.