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                  Economy of India  The  economy of India  has transitioned from a  mixed   planned economy  to a  mixed   middle-income   developing   social market economy  with notable  state participation  in strategic sectors. [45]  It is the world's  fifth-largest  economy by  nominal GDP  and the  third-largest  by  purchasing power parity  (PPP). According to the  International Monetary Fund  (IMF), on a  per capita income  basis,  India   ranked   139th by GDP (nominal)  and  127th by GDP (PPP) . [46]  From  independence in 1947  until 1991, successive governments followed Soviet style planned economy and promoted  protectionist  economic policies, with extensive  state intervention  and  economic regulation . This is characterised as  dirigism , in the form of the  License Raj . [47] [48]  The end of the  Cold War  and an acute  balance of payments crisis  in 1991 led to the adoption of a broad  economic liberalisation in India . [49] [50]  Since the start of the 21st cen