India's industrial economy, which has invested much in advanced technology initiatives such as digital communications and space research, contrasts with the poverty that persists, particularly in rural areas. The country ranks among the top dozen in the world by gross national product. Growth in this sector has been steady despite frequent damage through drought and flooding. India's energy requirements are met by oil, most of which is imported despite the growth of indigenous production, and hydroelectric schemes, mostly based amid the powerful northern rivers.
Mining is a relatively small sector, but does produce iron ore and cut diamonds for export.
Economic reforms were put into effect throughout the 1990s, under which trade has been liberalised, the sprawling public sector cut back, and state-owned industries sold off. The plan was approved with the IMF, which supplied substantial credits to the Indian treasury. After the hiatus following the 1997 Asian financial crisis, the economy has resumed its healthy growth rate of around 6 per cent per annum. Further reforms, especially improvements to the national infrastructure and basic services, are now seen as the priority for central and regional governments. Japan and Russia are India's major trading partners, among a wide range of extensive bilateral economic relations stretching from Australia and the Pacific Basin through Western Europe to the USA, Canada and Brazil.