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India vs. Burma

Economy

IndiaBurma
Economy - overview

India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly less than half of the workforce is in agriculture, but services are the major source of economic growth, accounting for nearly two-thirds of India's output but employing less than one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services, business outsourcing services, and software workers. Nevertheless, per capita income remains below the world average. India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and served to accelerate the country's growth, which averaged nearly 7% per year from 1997 to 2017.

India's economic growth slowed in 2011 because of a decline in investment caused by high interest rates, rising inflation, and investor pessimism about the government's commitment to further economic reforms and about slow world growth. Investors' perceptions of India improved in early 2014, due to a reduction of the current account deficit and expectations of post-election economic reform, resulting in a surge of inbound capital flows and stabilization of the rupee. Growth rebounded in 2014 through 2016. Despite a high growth rate compared to the rest of the world, India's government-owned banks faced mounting bad debt, resulting in low credit growth. Rising macroeconomic imbalances in India and improving economic conditions in Western countries led investors to shift capital away from India, prompting a sharp depreciation of the rupee through 2016.

The economy slowed again in 2017, due to shocks of "demonetizaton" in 2016 and introduction of GST in 2017. Since the election, the government has passed an important goods and services tax bill and raised foreign direct investment caps in some sectors, but most economic reforms have focused on administrative and governance changes, largely because the ruling party remains a minority in India's upper house of Parliament, which must approve most bills.

India has a young population and corresponding low dependency ratio, healthy savings and investment rates, and is increasing integration into the global economy. However, long-term challenges remain significant, including: India's discrimination against women and girls, an inefficient power generation and distribution system, ineffective enforcement of intellectual property rights, decades-long civil litigation dockets, inadequate transport and agricultural infrastructure, limited non-agricultural employment opportunities, high spending and poorly targeted subsidies, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.

Since Burma began the transition to a civilian-led government in 2011, the country initiated economic reforms aimed at attracting foreign investment and reintegrating into the global economy. Burma established a managed float of the Burmese kyat in 2012, granted the Central Bank operational independence in July 2013, enacted a new anti-corruption law in September 2013, and granted licenses to 13 foreign banks in 2014-16. State Counsellor AUNG SAN SUU KYI and the ruling National League for Democracy, who took power in March 2016, have sought to improve Burma's investment climate following the US sanctions lift in October 2016 and reinstatement of Generalized System of Preferences trade benefits in November 2016. In October 2016, Burma passed a foreign investment law that consolidates investment regulations and eases rules on foreign ownership of businesses.

Burma's economic growth rate recovered from a low growth under 6% in 2011 but has been volatile between 6% and 8% between 2014 and 2018. Burma's abundant natural resources and young labor force have the potential to attract foreign investment in the energy, garment, information technology, and food and beverage sectors. The government is focusing on accelerating agricultural productivity and land reforms, modernizing and opening the financial sector, and developing transportation and electricity infrastructure. The government has also taken steps to improve transparency in the mining and oil sectors through publication of reports under the Extractive Industries Transparency Initiative (EITI) in 2016 and 2018.

Despite these improvements, living standards have not improved for the majority of the people residing in rural areas. Burma remains one of the poorest countries in Asia - approximately 26% of the country's 51 million people live in poverty. The isolationist policies and economic mismanagement of previous governments have left Burma with poor infrastructure, endemic corruption, underdeveloped human resources, and inadequate access to capital, which will require a major commitment to reverse. The Burmese Government has been slow to address impediments to economic development such as unclear land rights, a restrictive trade licensing system, an opaque revenue collection system, and an antiquated banking system.

GDP (purchasing power parity)$9,155,083,000,000 (2019 est.)

$8,787,694,000,000 (2018 est.)

$8,280,935,000,000 (2017 est.)

note: data are in 2010 dollars
$277.909 billion (2019 est.)

$270.109 billion (2018 est.)

$253.028 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate4.86% (2019 est.)

6.78% (2018 est.)

6.55% (2017 est.)
6.8% (2017 est.)

5.9% (2016 est.)

7% (2015 est.)
GDP - per capita (PPP)$6,700 (2019 est.)

$6,497 (2018 est.)

$6,186 (2017 est.)

note: data are in 2010 dollars
$5,142 (2019 est.)

$5,029 (2018 est.)

$4,740 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 15.4% (2016 est.)

industry: 23% (2016 est.)

services: 61.5% (2016 est.)
agriculture: 24.1% (2017 est.)

industry: 35.6% (2017 est.)

services: 40.3% (2017 est.)
Population below poverty line21.9% (2011 est.)24.8% (2017 est.)
Household income or consumption by percentage sharelowest 10%: 3.6%

highest 10%: 29.8% (2011)
lowest 10%: 2.8%

highest 10%: 32.4% (1998)
Inflation rate (consumer prices)3.7% (2019 est.)

3.9% (2018 est.)

3.3% (2017 est.)
8.8% (2019 est.)

6.8% (2018 est.)

4.6% (2017 est.)
Labor force521.9 million (2017 est.)22.3 million (2017 est.)
Labor force - by occupationagriculture: 47%

industry: 22%

services: 31% (FY 2014 est.)
agriculture: 70%

industry: 7%

services: 23% (2001 est.)
Unemployment rate8.5% (2017 est.)

8.5% (2016 est.)
4% (2017 est.)

4% (2016 est.)
Distribution of family income - Gini index35.7 (2011 est.)

37.8 (1997)
30.7 (2017 est.)
Budgetrevenues: 238.2 billion (2017 est.)

expenditures: 329 billion (2017 est.)
revenues: 9.108 billion (2017 est.)

expenditures: 11.23 billion (2017 est.)
Industriestextiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticalsagricultural processing; wood and wood products; copper, tin, tungsten, iron; cement, construction materials; pharmaceuticals; fertilizer; oil and natural gas; garments; jade and gems
Industrial production growth rate5.5% (2017 est.)8.9% (2017 est.)
Agriculture - productssugar cane, rice, wheat, buffalo milk, milk, potatoes, vegetables, bananas, maize, mangoes/guavasrice, sugar cane, beans, vegetables, milk, maize, poultry, groundnuts, fruit, plantains
Exports$572.073 billion (2019 est.)

$564.165 billion (2018 est.)

$509.661 billion (2017 est.)
$16.267 billion (2018 est.)

$14.611 billion (2017 est.)

note: official export figures are grossly underestimated due to the value of timber, gems, narcotics, rice, and other products smuggled to Thailand, China, and Bangladesh
Exports - commoditiesrefined petroleum, diamonds, packaged medicines, jewelry, cars (2019)natural gas, clothing products, rice, copper, dried legumes (2019)
Exports - partnersUnited States 17%, United Arab Emirates 9%, China 5% (2019)China 24%, Thailand 24%, Japan 7%, Germany 5% (2019)
Imports$624.314 billion (2019 est.)

$656.529 billion (2018 est.)

$575.121 billion (2017 est.)
$14.958 billion (2018 est.)

$16.21 billion (2017 est.)

note: import figures are grossly underestimated due to the value of consumer goods, diesel fuel, and other products smuggled in from Thailand, China, Malaysia, and India
Imports - commoditiescrude petroleum, gold, coal, diamonds, natural gas (2019)refined petroleum, broadcasting equipment, fabrics, motorcycles, packaged medicines (2019)
Imports - partnersChina 15%, United States 7%, United Arab Emirates 6%, Saudi Arabia 5% (2019)China 43%, Thailand 15%, Singapore 12%, Indonesia 5% (2019)
Debt - external$555.388 billion (2019 est.)

$518.34 billion (2018 est.)
$6.594 billion (31 December 2017 est.)

$8.2 billion (31 December 2016 est.)
Exchange ratesIndian rupees (INR) per US dollar -

73.565 (2020 est.)

71.05 (2019 est.)

70.7675 (2018 est.)

64.152 (2014 est.)

61.03 (2013 est.)
kyats (MMK) per US dollar -

1,361.9 (2017 est.)

1,234.87 (2016 est.)

1,234.87 (2015 est.)

1,162.62 (2014 est.)

984.35 (2013 est.)
Fiscal year1 April - 31 March1 April - 31 March
Public debt71.2% of GDP (2017 est.)

69.5% of GDP (2016 est.)

note: data cover central government debt, and exclude debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data exclude debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
33.6% of GDP (2017 est.)

35.7% of GDP (2016 est.)
Reserves of foreign exchange and gold$409.8 billion (31 December 2017 est.)

$359.7 billion (31 December 2016 est.)
$4.924 billion (31 December 2017 est.)

$4.63 billion (31 December 2016 est.)
Current Account Balance-$29.748 billion (2019 est.)

-$65.939 billion (2018 est.)
$240 million (2019 est.)

-$2.398 billion (2018 est.)
GDP (official exchange rate)$2,835,927,000,000 (2019 est.)$76.606 billion (2019 est.)
Ease of Doing Business Index scoresOverall score: 71 (2020)

Starting a Business score: 81.6 (2020)

Trading score: 82.5 (2020)

Enforcement score: 41.2 (2020)
Overall score: 46.8 (2020)

Starting a Business score: 89.3 (2020)

Trading score: 47.7 (2020)

Enforcement score: 26.4 (2020)
Taxes and other revenues9.2% (of GDP) (2017 est.)13.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-3.5% (of GDP) (2017 est.)-3.2% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 22.3%

male: 21.9%

female: 23.8% (2019 est.)
total: 1.5%

male: 1.4%

female: 1.6% (2019 est.)
GDP - composition, by end usehousehold consumption: 59.1% (2017 est.)

government consumption: 11.5% (2017 est.)

investment in fixed capital: 28.5% (2017 est.)

investment in inventories: 3.9% (2017 est.)

exports of goods and services: 19.1% (2017 est.)

imports of goods and services: -22% (2017 est.)
household consumption: 59.2% (2017 est.)

government consumption: 13.8% (2017 est.)

investment in fixed capital: 33.5% (2017 est.)

investment in inventories: 1.5% (2017 est.)

exports of goods and services: 21.4% (2017 est.)

imports of goods and services: -28.6% (2017 est.)
Gross national saving29.1% of GDP (2019 est.)

31.1% of GDP (2018 est.)

31.4% of GDP (2017 est.)
29.4% of GDP (2018 est.)

26.2% of GDP (2017 est.)

17.6% of GDP (2016 est.)

Source: CIA Factbook