India:

Country Economic Overview

an overview of the indian economy

Contents

An Overview of the Economy

The Indian economy is among the fastest growing in the world and is still growing at a rate of double that of the West during the Industrial Revolution. The economy has posted an average growth rate of over 7% in the decade since 1996, with a GDP growth rate of 9.2% in 2007.

India's economy is diverse, with about three-fifths of the workforce still in agriculture. As time moves on though, services and software industries are becoming major components of the country's economic growth. India still remains a low-income economy as classified by the World Bank, largely as a result of its huge and growing population.

statistics  
GDP (PPP) (IMF) (US$Billions) 2,988
GDP (PPP) (CIA) (US$Billions) 2,989
GDP Growth (IMF) (%) 9.2%
GDP Growth (CIA (%) 9.2%
GDP Per Capita (PPP) (IMF) (US$) 2,659
GDP Per Capita (PPP) (CIA) (US$) 2,700
GDP by Sector (%) Agriculture: 17.6%
Services: 52.9%
Industry: 29.4%
Inflation (%) 6.4%
Population Below the Poverty Line (%) 25%
Labour Force (Millions) 516.4
Labour Force by Occupation (%) Agriculture: 60%
Services: 28%
Industry: 12%
Unemployment (%) 7.2%
Main Industries Textiles, chemicals, food processing,
steel, transportation equipment, cement,
mining, petroleum, machinery, software.

Sources: CIA World Factbook, IMF
 

GDP

India's GDP growth was 9.2%in 2007 and is forecasted to increase by over 7% in 2008 according to the IMF.

economic indicators 2003 2004 2005 2006 2007
GDP (US$Billions) 577 667 781 887 1,099
GDP Growth (%) 7.3% 7.8% 9.2% 9.2% 9.2%
GDP Per Capita (US$) 543 618 712 797 977
GDP Per Capita (PPP) (US$) 1,773 1,950 2,156 2,405 2,700
Inflation (%) 3.8% 3.8% 4.2% 6.1% 6.4%
Unemployment (%) 8.8% 9.5% 9.2% 7.8% 7.2%
Foreign-Exchange
& Gold Reserves
(US$Billions)
- 102 126 136 275
Mobile Phone Users 26,154,000 26,154,000 69,193,000 69,193,000 166,100,000
Internet Users  17,000,000 32,000,000 55,000,000 60,000,000 60,000,000

Sources: CIA World Factbook, IMF

Major Exports & Imports

India, for most of its independent history, has followed a policy of strict government control over foreign trade and investment. However, since the early 1990s, the government has reduced controls on foreign trade. Yet the privatisation of industries and the opening up of foreign sectors to foreign investment has proceeded slowly and still generates much political debate.

Major exports include engineering goods, textiles, gems and petroleum products. Major imports include petroleum, electronic goods, gold and silver. The US, UAE and China are India's main export partners, with China, the US and Germany leading its list of import partners.

major exports 2007

Petroleum products, textile goods, gems and jewellery, engineering goods, leather manufactures.

major imports 2007

Crude oil, machinery, gems, fertiliser, chemicals.

export partners % of total
US 17.0%
UAE 8.3%
China 7.7%
UK 4.3%
import partners % of total
China 8.7%
US 6.0%
Germany 4.6%
Singapore 4.6%
Australia 4.0%
Source: CIA World Factbook
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