India is an open economy, and the dynamics of it can be witnessed from the inflation and deflation of the rupee value in the market. This comprehensive book on Indian Economy shows how it behaves, and how its parameters are weighed and analyzed vis-??-vis the macroeconomic theories. This book attempts to make a more complete and clearer presentation of the basic models of macroeconomics principles, and their effect on India???s current economic conditions. International Monetary Fund (IMF) thrusted upon New Economic Policy in India, which aims at leaving the allocation of resources entirely to the market forces deriving its rationale from neoclassical macroeconomics. This neoclassical macroeconomics is dealt with in a proper perspective in the book. Part I presents the basic models of open economy macroeconomics, and Part II applies them to explain India???s recent macroeconomic performance. The book also assesses India???s current fiscal policy, monetary policy and the policy of forcible land acquisition for promotion of modern industry. The book is designed as a reference for the undergraduate and postgraduate students of Economics.