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    Economy of India

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    asmi
    The Indian economy is the seventh largest in the world by nominal GDP and third largest by PPP. Three major sectors contribute to the Indian economy - agriculture, industry, and services. Agriculture accounts for about 18% of GDP and employs 50% of the workforce. Industry contributes 26% to GDP and employs 22% of the workforce. Services account for 60% of GDP and have attracted the most foreign investment. However, challenges include a growing population, poverty, unemployment, and rural-urban divide. Relations between India and Pakistan have been complex and hostile due to the violent partition and ongoing Kashmir conflict.

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    Economy of India

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    asmi
    53 views13 pages
    The Indian economy is the seventh largest in the world by nominal GDP and third largest by PPP. Three major sectors contribute to the Indian economy - agriculture, industry, and services. Agriculture accounts for about 18% of GDP and employs 50% of the workforce. Industry contributes 26% to GDP and employs 22% of the workforce. Services account for 60% of GDP and have attracted the most foreign investment. However, challenges include a growing population, poverty, unemployment, and rural-urban divide. Relations between India and Pakistan have been complex and hostile due to the violent partition and ongoing Kashmir conflict.

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    The Indian economy is the seventh largest in the world by nominal GDP and third largest by PPP. Three major sectors contribute to the Indian economy - agriculture, industry, and services. Agriculture accounts for about 18% of GDP and employs 50% of the workforce. Industry contributes 26% to GDP and employs 22% of the workforce. Services account for 60% of GDP and have attracted the most foreign investment. However, challenges include a growing population, poverty, unemployment, and rural-urban divide. Relations between India and Pakistan have been complex and hostile due to the violent partition and ongoing Kashmir conflict.

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    53 views13 pages

    Economy of India

    Uploaded by

    asmi
    The Indian economy is the seventh largest in the world by nominal GDP and third largest by PPP. Three major sectors contribute to the Indian economy - agriculture, industry, and services. Agriculture accounts for about 18% of GDP and employs 50% of the workforce. Industry contributes 26% to GDP and employs 22% of the workforce. Services account for 60% of GDP and have attracted the most foreign investment. However, challenges include a growing population, poverty, unemployment, and rural-urban divide. Relations between India and Pakistan have been complex and hostile due to the violent partition and ongoing Kashmir conflict.

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    Economy of India

    The Economy of India is the seventh-largest in the world by nominal


    GDP and the third-largest by purchasing power parity (PPP).[27] The country
    classified as Newly Industrialized Country, one of theG-20 major
    economies, a member of BRICS and a developing economy with
    approximately 7% average growth rate for the last two decades. [28] India's
    economy became the world's fastest growing major economy from the last
    quarter of 2014, replacing China's.[29]
    The long-term growth prospective of the Indian economy is moderately
    positive due to its young population, corresponding low dependency ratio,
    healthy savings and investment rates, and increasing integration into the
    global economy,[30]The Indian economy has the potential to become the
    world's3rd-largest Economy by next decade, and one of the largest
    economies by mid-century.[31][32][33].And the outlook for short-term growth
    prospective is also good as according to IMF, the Indian economy is the
    "bright spot" in the global landscape,[34]India also topped World Banks
    growth outlook for the year 2015-16 for the first time with economy grown
    7.3% in 2014-15 & expected to grow at 7.5-8.3% in 2015-16. [35]
    India has the one of fastest growing service sectors in the world with
    annual growth rate of above 9% since 2001, which contributed to 57% of
    GDP in 2012-13.[36] India has capitalized its economy based on its large
    educated English-speaking population to become a major exporter
    of IT services, BPO services, and software services with $167.0 billion
    worth of service exports in 2013-14. It is also the fastest-growing part of the
    economy.[6] The IT industry continues to be the largest private sector
    employer in India.[37][38] India is also the fourth largest start-up hub in the
    world with over 3,100 technology start-ups in 2014-15 [39] The agricultural
    sector is the largest employer in India's economy but contributes to a
    declining share of its GDP (17% in 2013-14). India ranks second worldwide
    in farm output. [5] The Industry sector has held a constant share of its
    economic contribution(26% of GDP in 2013-14). [40]The Indian auto industry
    is one of the largest in the world with an annual production of 21.48 million
    vehicles in FY 2013-14.[41]India has $600 billion worth of retail market in
    2015 and one of world's fastest growing E-Commerce markets. [42][43]

    India's two major stock exchanges, Bombay Stock Exchange and National
    Stock Exchange of India, had a market capitalization of US$1.71 trillion and
    US$1.68 trillion respectively as of Feb 2015, which ranks 11th & 12
    largest in the world respectively according to the World Federation of
    Exchanges.[44]India also home to world's third largest Billionaires pool with
    97 billionaires in 2014 and fourth largest number of ultra-high-net-worth
    households that have more than 100 million dollars. [45][46]
    India is a member of the Commonwealth of Nations ,the South Asian
    Association for Regional Cooperation ,the G20,the International Monetary
    Fund, the World Bank, the World Trade Organization, the Asian Infrastructure
    Investment Bank ,the United Nations and the New Development BRICS Bank.

    Currency

    Indian rupee (INR) () = 100 Paise

    Fiscal year

    1 April 31 March

    Trade organizations

    WTO, SAFTA, BRICS, G-20 and others


    Statistics

    GDP

    $2.308 trillion (Nominal, April 2015)[3]


    $7.996 trillion (PPP, April 2015)[3]

    GDP rank

    7th (Nominal) / 3rd (PPP)

    GDP growth

    7.3% (2014-15) [4]

    GDP per capita

    $1,808 (Nominal: 131th; 2015)[3]


    $6,265 (PPP: 121th; 2015)[3]

    GDP by sector

    Agriculture: 17%
    Industry: 26%
    Services: 57% (2013-14)[5][6]

    Inflation (CPI)

    CPI:

    5.01%

    WPI: -2.36% [7] (May, 2015)

    Population belowpoverty line

    23.6%, 276 million (2011, World Bank, based on 2005 ICP PPP)[8]
    21.9% (2012, Reserve Bank of India),[9]
    21.9% (2012, United Nation's Millennium Development Goal (MGD) programme)[1]

    Gini coefficient

    33.9 (2012 est.)[10]

    Labour force

    502.3 million (2014 est.)

    Labour force by occupation

    Agriculture: 49%
    Industry: 20%
    Services: 31% (2012 est.)

    Unemployment

    3% Urban
    2% Rural
    Total=10.8 million
    (2013, NSSO method)[11]

    Average gross salary

    $1.46 per hour ($3,036.8 yearly in 2010);[12]


    GNI per capita: $1,631 yearly per person (2014);[13]
    Average household income: $6,671 yearly (2010)[14]

    Main industries

    software, petroleum products, chemicals, pharmaceuticals,agriculture, textiles, steel, transportation


    equipment, machinery,leather, cement, mining, construction[15][16]

    Ease-of-doing-business rank

    142[17] (2015)
    External
    $313.2 billion: merchandise exports

    Exports

    $150.9 billion: services exports


    $464.2 billion: Total (2013)[18]
    Export goods

    software, petrochemicals, agriculture products, jewellery, engineering goods,


    [19]

    Main export partners

    pharmaceuticals, textiles, chemicals,transportation, ores and other commodities[16]


    European Union 16.7%(2013)[18]
    United States 12.5%
    United Arab Emirates 10.1%

    China 4.9%
    Singapore 4.2%
    Imports

    $466 billion: merchandise imports


    $124.6 billion: services imports
    $590.6 billion: Total (2013)[18]

    Import goods

    crude oil, gold and precious stones, electronics, engineering goods,[19] chemicals, plastics, coal and
    ores, iron and steel,vegetable oil and other commodities[16]

    Main import partners

    China 11.1% (2013[18])


    European Union 10.6%
    Saudi Arabia 7.9%
    United Arab Emirates 7.1%
    Switzerland 5.3%

    FDI stock

    Inflows: $223.7 billion


    Outflows: $54.6 billion (2009-2013)[20]
    Public finances

    Public debt

    64.9% of GDP (2014)[21]

    Budget deficit

    4.1% of GDP (201415)[22]

    Revenues

    27.5 trillion (US$440 billion) (2015,IMF)[23]

    Expenses

    37.6 trillion (US$600 billion) (2015,IMF) [23]

    Economic aid
    Credit rating

    $2.43 billion (2013)[24]


    BBB- (Domestic)
    BBB- (Foreign)
    BBB+ (T&C Assessment)
    Outlook: Stable
    (Standard & Poor's)[25]

    Foreign reserves

    $355.2 billion (as of 26 June 2015)[26]

    Major Contributors to the Indian Economy


    Three major sectors contribute to the Indian economy and the GDP of the
    country. These are: (i) agriculture - which includes crops, milk, animal
    husbandry, fishing, forestry and some other activities. (ii) industry - which
    includes several manufacturing sub-sectors, and (iii) services - which
    includes retail, construction, software, communication, IT, banking,
    healthcare and other economic activities.
    Agriculture - In agriculture production, India ranks second in the world.
    Agriculture and related activities accounts for about 18% of the total GDP
    and also employ approximately 50% of the total workforce of the country.
    The agriculture sector's contribution to the economy has been increasing
    with every financial year. In the financial year 2013-14, food grain
    production in the country stood at 264 million tones. .
    Industry - Industry contributes about 26% of the GDP and 22% of the total
    workforce in India is associated with industry sector. There are many subsectors in industry which generate revenue for this sector such as
    petroleum, engineering, pharmaceuticals, mining, textile and many more
    Services- The Indian service sectors account for about 60% of the total
    GDP. Information technology (IT), IT enabled services (ITeS) and ecommerce has led to the growth of this sector. The services sector has also
    attracted the highest amount of foreign equity with the government's foreign
    direct investment (FDI) policies. ...

    Challenges before Indian economy:


    Population explosion: The rising population is eating into the
    success of India. According to 2011 census, the population of India
    has crossed one billion and is growing at a rate of 2.11%
    approximately. Such a vast population puts lot of stress on economic
    infrastructure of the nation. Thus India has to control its burgeoning
    population.

    Poverty: As per records of National Planning Commission, 36 corer


    people were living below the poverty line in India in 2012.

    Unemployment: The increasing population is pressing hard on


    economic resources as well as job opportunities. Indian government
    has started various schemes such as Jawahar Rozgar Yojna, and
    Self Employment Scheme for Educated Unemployed Youth (SEEUY).
    But these are proving to be a drop in an ocean.

    Rural Urban Divide: It is said that India lies in villages. Even today
    when there is lot of talk about migration to cities, 70% of the Indian
    population still lives in villages. There is a very stark difference in the
    pace of rural and urban growth. Unless there isn't a balanced
    development Indian economy cannot grow.

    IndiaPakistan relations
    Relations between India and Pakistan have been complex due to a
    number of historical and political events. Relations between the two states
    have been defined by the violent partition of British India in 1947,
    the Kashmir conflict and the numerous military conflictsfought between the
    two nations. Consequently, even though the two South Asian nations
    share linguistic, cultural, geographic, and economic links, their relationship
    has been plagued by hostility and suspicion.
    After the dissolution of the British Raj in 1947, two new sovereign nations
    were formedthe Dominion of India and the Dominion of Pakistan. The
    subsequent partition of the former British India displaced up to 12.5 million
    people, with estimates of loss of life varying from several hundred thousand
    to 1 million.[1] India emerged as a secular nation with a Hindu
    majority population and a large Muslim minority while Pakistan was
    established as an Islamic republic with an overwhelming Muslim

    majority population;[2][3] although it's constitution guarantees freedom of


    religion to people of all faiths.[4]
    Soon after their independence, India and Pakistan established diplomatic
    relations but the violent partition and numerous territorial claims would
    overshadow their relationship. Since their independence, the two countries
    have fought three major wars, one undeclared war and have been involved
    in numerous armed skirmishes and military standoffs. The Kashmir
    conflict is the main centre-point of all of these conflicts with the exception of
    the Indo-Pakistan War of 1971 and Bangladesh Liberation War, which
    resulted in the secession of East Pakistan (now Bangladesh).
    There have been numerous attempts to improve the relationshipnotably,
    the Shimla summit, the Agra summit and the Lahore summit. Since the
    early 1980s, relations between the two nations soured particularly after
    the Sachem conflict, the intensification of Kashmir insurgency in
    1989, Indian and Pakistani nuclear tests in 1998 and the 1999 Kargil war.
    Certain confidence-building measures such as the 2003 ceasefire
    agreement and the DelhiLahore Bus service were successful in
    deescalating tensions. However, these efforts have been impeded by
    periodic terrorist attacks. The 2001 Indian Parliament attack almost brought
    the two nations to the brink of a nuclear war. The 2007 Samjhauta Express
    bombings, which killed 68 civilians (most of whom were Pakistani), was
    also a crucial point in relations. Additionally, the 2008 Mumbai
    attacks carried out by Pakistani militants[5] resulted in a severe blow to the
    ongoing India-Pakistan peace talks.
    According to a 2013 BBC World Service Poll, 11% of Indians view
    Pakistan's influence positively, with 45% expressing a negative view, while
    19% of Pakistanis view India's influence positively, with 54% expressing a
    negative view.[6] Since the election of new government in Pakistan in mid2013, significant steps are being taken to improve relations, in particular
    the consensus on the agreement of Non-Discriminatory Market Access on
    Reciprocal Basis (NDMARB) status for each other, which will liberalize
    trade.[7]

    Country comparison
    India

    Pakistan

    Population

    1,210,193,422[81]

    170,600,000

    Area

    3,287,240 km (1,269,210 sq mi)

    796,095 km (307,374 sq mi)

    Population density

    382/km (922/sq mi)

    214.3/km (555/sq mi)

    Capital

    New Delhi

    Islamabad

    Largest city

    Mumbai

    Karachi

    Government

    Federal republic, Parliamentary democracy

    Official languages

    Hindi, English and 20 other official


    languages

    80.5% Hinduism, 13.4% Islam, 2.3%


    Main religions

    Christianity, 1.9% Sikhism, 0.8% Buddhism,


    0.4% Jainism[82]

    Islamic Parliamentary Republic

    Urdu, English

    95-98% Islam (80-95% Sunni, 5-20% Shi'a),


    1.6% Christianity, 1.6%Hinduism, others

    GDP (nominal)

    $2.048 trillion ($1,626 per capita)

    $236.518 billion ($1,295 per capita)

    GDP (PPP)

    $7.277 trillion ($5,777 per capita)

    $855 billion ($4,699 per capita)

    Military expenditures

    $36.03 billion (1.83% of GDP)

    $5.1 billion (2.8% of GDP)

    MAJOR ITEMS OF EXPORTS & IMPORTS


    The important items of export to this region are textiles and ready made
    garments, engineering goods such as bicycles and components thereof, mopeds,
    diesel engines, automotive components, hand tools etc., chemical and allied items
    like fine chemicals, dye and dye intermediates, tyres and tubes, rubber gloves.
    Besides, India also exports handicrafts items, sports goods, electronic items, jute,
    shellac, tea and spices to Latin America.
    Indias major imports from the region are iron & steel and their products,
    non-ferrous metals, crude minerals, chemicals, PVC, pulp & paper waste, raw
    wool etc.

    INDIA BREIF ECONOMIC OVERVIEW

    Major Industries of India


    Food Processing
    Mines
    Gems and Jewelry Oil and Gas
    Heavy Industry Pharmaceuticals
    Steel

    Textiles
    Source: Department of Commerce: System on Foreign Trade
    Performance Analysis (FTPA)
    Major Service Sector
    Information Technology Media and Entertainment
    Insurance Retailing and tourism
    Source: Department of Commerce: System on Foreign Trade
    Performance Analysis (FTPA)
    India Top 5 Commodities of Exports
    Rank Commodity %share
    1 Petroleum (crude & products) 21.09
    2 Transport equipments 10.29
    3 Gems & jewelers 5.30
    4 Machinery and instruments 5.02
    5 Manufactures of metals 4.93
    Source: Department of Commerce: System on Foreign Trade
    Performance Analysis (FTPA)
    Top Commodities of Indian import
    Rank Commodity %share
    1 Petroleum, crude & products 35.94
    2 Gold 12.00
    3 Perls prcus semiprcs stones 7.63
    4 Machry excpt elec & electronic 6.22
    5 Electronic goods 6.15
    6 Coal,coke & briquittes etc. 3.16
    7 ORGANIC CHEMICALS 2.80
    8 METALIFERS ORES & METAL SCRAP 2.74

    PAKISTAN AND TRADE GATE

    Overall Guest mated Informal Trade PAKISTAN


    AND INDIA

    S. No.
    1
    2
    3
    4
    5

    Sectors
    Fruits and vegetables
    Pharmaceutical products
    Textile
    Spices (includes tea and
    spices)
    Tobacco items

    (Rs. Millions)
    540.0
    5940
    370840
    960
    4440

    6
    7
    8
    9
    Total

    Automobile
    Cosmetic items
    Herbel medicine
    Jewelry
    423,266.9

    26840
    4800
    110
    8796.5

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