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This chapter is excerpted from 'Understanding the Indian Economy from the Post-Reforms of 1991, Volume II'. This book is the second in the series of eight such volumes and consists of 13 chapters. All the chapters are important for a study of the Indian economy as they are devoted to topics like nature and structure of the Indian economy; dominance of the unorganized sector; natural resources of India; economic infrastructure; social infrastructure; manpower - demographic profile; poverty in India - nature, dimension, and policy measures; unemployment - forms, magnitude, and policy; inequality of income and wealth; national income; capital formation - savings and investment, role of noneconomic factors such as cultural, social, legal, and political influencing the economy; and sources of data for studying the Indian economy. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one-third of its labor force. The Indian economy has progressed structurally in terms of the growth of capital goods industries, expansion of infrastructure, performance of the public sector, and so on. Significant progressive changes have taken place in the banking and financial structure. The structural change has been very slow, but has virtually given a fillip to the traditional and stagnant economy. These factors, over the years, are believed to have created an element of dynamism in the country's economy, and one can now hopefully say that it would sustain development in the future. Economic reform provides a fillip to structural change. The economy is moving out of the negative legacies of the past. At present, though, the Indian economy is in the midst of a slowdown in the investment and savings rates, amidst the incidence of shocks, the Indian economy has exhibited tremendous resilience. The direction of reform hinges on political will. Efficient markets and effective governments, together, adapting to each other as time and circumstances change, provide the way forward in the development of the Indian economy. India must prioritize growth and marshal resources to that end.