Economy of India

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Economy of The Republic of India

Modern Indian notes

Rank 11th (nominal) / 4th (PPP)

Currency
1 Indian Rupee (INR) ( ) = 100 Paise

Fixed exchange USD = 44.7000 INR

rates (October 01, 2010)

[1]

Fiscal year Calendar year (1 April — 31 March)

Trade WTO, SAFTA, G-20 and others

organizations

Statistics

GDP $1.250 trillion (nominal: 11th; 2009)[2]

$3.526 trillion (PPP: 4th; 2009)[2]

GDP growth 8.8% (2010, Q1)[3]

GDP per capita

$1,031 (nominal: 139th; 2009)[2]

$2,941 (PPP: 128th; 2009)[2]

GDP by sector agriculture (18%), industry (22%), services (60%) (2009)

Inflation (CPI) 8.5% (August 2010)[4]

Population 37% (2010)[5]

below poverty

line

Gini index 36.8 (List of countries)

Labour force 467 million (2nd; 2009)

Labour force agriculture (52%), industry (14%), services (34%) (2009 est.)

by occupation

Unemployment 10.7% (2010 est.)[6]

Main industries telecommunications, textiles,chemicals, food

processing, steel,transportation

equipment, cement,mining, petroleum, machinery,information

technology,pharmaceuticals

Ease of Doing 133rd[7]

Business Rank

External

Exports $176.5 billion (18th; 2009)

Export goods software, petroleum products, textile goods, gems and jewelry,

engineering goods, chemicals, leather manufactures

Main export US 12.3%, UAE 9.4%, China 9.3% (2008)

partners

Imports $287.5 billion (15th; 2009)

Import goods crude oil, machinery, gems, fertilizer, chemicals

Main import China 11.1%, Saudi

partners Arabia 7.5%, US6.6%, UAE 5.1%, Iran 4.2%, Singapore4.2%, Germany

4.2% (2008)

FDI stock Home: $161.3 billion (24th; 2009)

Abroad: $77.4 billion (24th; 2009)

Gross external $223.9 billion (31 December 2009 est.)

debt

Public finances

Public debt 58% of GDP (2009 est.)[8]

Revenues $129.8 billion (2009 est.)

Expenses $214.6 billion (2009 est.)

Economic aid $1.724 billion (2005)[9]

Foreign $282.84 billion (6th; Aug 2010)

reserves

Main data source: CIA World Fact Book

All values, unless otherwise stated, are in US dollars

Throughout this article, the unqualified term "dollar" and the $ symbol refer to the US dollar.

The economy of India is the eleventh largest economy in the world by nominal GDP[2] and the fourth
largest by purchasing power parity (PPP).[10]Following strong economic reforms from the socialist
inspired economy of a post-independence Indian nation, the country began to develop a fast-paced
economic growth, as free market principles were initiated in 1990 for international competition and foreign
investment.[11] India is an emerging economic power with a very large pool of human and natural
resources, and a growing large pool of skilled professionals. According to the book 'Contours of the World
Economy, 1-2030AD' by Angus Maddison, India was the largest economy from the year 1 AD until the
colonial period whereupon it was taken over by other countries such as China and the U.K. Economists
predict that by 2020,[12] India will be among the leading economies of the world. According to
the BRIC report, published by Goldman Sachs, India will be the second largest economy after china by
2043.

India was under social democratic-based policies from 1947 to 1991. The economy was characterised
by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth.[13][14][15]
[16]
Since 1991, continuing economic liberalisation has moved the country toward a free market economy.
[14][15]
A revival of economic reforms and better economic policy in first decade of the 21st century
accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalize
business regulations.[7] By 2008, India had established itself as the world'ssecond-fastest growing major
economy.[17][18][19] However, the year 2009 saw a significant slowdown in India's GDP growth rate to
6.8%[20] as well as the return of a large projected fiscal deficit of 6.8% of GDP which would be among the
highest in the world.[21][22]

India's large service industry accounts for 55% of the country's Gross Domestic Product (GDP) while the
industrial and agricultural sector contribute 28% and 17% respectively.[23] Agriculture is the predominant
occupation in India, accounting for about 52% of employment. The service sector makes up a further
34%, and industrial sector around 14%.[23] The labor force totals half a billion workers. Major
agricultural products include rice,wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water
buffalo, sheep, goats, poultry and fish.[24] Major industries
includetelecommunications, textiles, chemicals, food processing, steel, transportation
equipment, cement, mining, petroleum, machinery, information technology enabled services
and pharmaceuticals.[24]
India's per capita income (nominal) is $1,030, ranked 139th in the world,[25] while its per capita (PPP) of
US$2,940 is ranked 128th.[26][27] Previously a closed economy, India's trade has grown fast.[14] India
currently accounts for 1.5% of World trade as of 2007 according to the WTO. According to the World
Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and imports) was
valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion.
Thus, India's global economic engagement in 2006 covering both merchandise and services trade was of
the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's trade has
reached a still relatively moderate share 24% of GDP in 2006, up from 6% in 1985.[14]