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India Economy Profile 2014

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Economy - overviewIndia 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 under 7% per year from 1997 to 2011. 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 work force is in agriculture, but, services are the major source of economic growth, accounting for nearly two-thirds of India's output with 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. India's economic growth began slowing 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 the global situation. In late 2012, the Indian Government announced additional reforms and deficit reduction measures, including allowing higher levels of foreign participation in direct investment in the economy. The outlook for India's long-term growth is moderately positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. However, India has many challenges that it has yet to fully address, including poverty, corruption, violence and 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. Growth in 2013 fell to a decade low, as India's economic leaders struggled to improve the country's wide fiscal and current account deficits. 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. However, 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.
GDP (purchasing power parity)$4.99 trillion (2013 est.)
$4.833 trillion (2012 est.)
$4.63 trillion (2011 est.)
note: data are in 2013 US dollars
GDP (official exchange rate)$1.67 trillion (2013 est.)
GDP - real growth rate3.2% (2013 est.)
5.1% (2012 est.)
7.5% (2011 est.)
GDP - per capita (PPP)$4,000 (2013 est.)
$3,900 (2012 est.)
$3,800 (2011 est.)
note: data are in 2013 US dollars
Gross national saving33.7% of GDP (2013 est.)
28.8% of GDP (2012 est.)
30.3% of GDP (2011 est.)
GDP - composition, by end usehousehold consumption: 56.4%
government consumption: 12.4%
investment in fixed capital: 29.6%
investment in inventories: 8.2%
exports of goods and services: 25.2%
imports of goods and services: -31.8%
(2013 est.)
GDP - composition by sectoragriculture: 17.4%
industry: 25.8%
services: 56.9% (2013 est.)
Population below poverty line29.8% (2010 est.)
Labor force487.3 million (2013 est.)
Labor force - by occupationagriculture: 49%
industry: 20%
services: 31% (2012 est.)
Unemployment rate8.8% (2013 est.)
8.5% (2012 est.)
Unemployment, youth ages 15-24total: 10.7%
male: 10.4%
female: 11.6% (2012)
Household income or consumption by percentage sharelowest 10%: 3.6%
highest 10%: 31.1% (2005)
Distribution of family income - Gini index36.8 (2004)
37.8 (1997)
Budgetrevenues: $181.3 billion
expenditures: $281.6 billion (2013 est.)
Taxes and other revenues10.3% of GDP (2013 est.)
Budget surplus (+) or deficit (-)-5.7% of GDP (2013 est.)
Public debt51.8% of GDP (2013 est.)
51.7% of GDP (2012 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 intra-governmental debt; intra-governmental 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
Inflation rate (consumer prices)9.6% (2013 est.)
9.7% (2012 est.)
Central bank discount rate7.75% (31 December 2013 est.)
8% (31 December 2010 est.)
note: this is the Indian central bank's policy rate - the repurchase rate
Commercial bank prime lending rate10.6% (31 December 2013 est.)
10.63% (31 December 2012 est.)
Stock of narrow money$303.1 billion (31 December 2013 est.)
$317.4 billion (31 December 2012 est.)
Stock of broad money$1.376 trillion (31 December 2013 est.)
$1.396 trillion (31 December 2012 est.)
Stock of domestic credit$1.379 trillion (31 December 2013 est.)
$1.401 trillion (31 December 2012 est.)
Market value of publicly traded shares$1.263 trillion (31 December 2012 est.)
$1.015 trillion (31 December 2011)
$1.616 trillion (31 December 2010 est.)
Agriculture - productsrice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish
Industriestextiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals
Industrial production growth rate0.9% (2013 est.)
Current Account Balance-$74.79 billion (2013 est.)
-$91.47 billion (2012 est.)
Exports$313.2 billion (2013 est.)
$296.8 billion (2012 est.)
Exports - commoditiespetroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel
Exports - partnersUAE 12.3%, US 12.2%, China 5%, Singapore 4.9%, Hong Kong 4.1% (2012)
Imports$467.5 billion (2013 est.)
$488.9 billion (2012 est.)
Imports - commoditiescrude oil, precious stones, machinery, fertilizer, iron and steel, chemicals
Imports - partnersChina 10.7%, UAE 7.8%, Saudi Arabia 6.8%, Switzerland 6.2%, US 5.1% (2012)
Reserves of foreign exchange and gold$295 billion (31 December 2013 est.)
$296 billion (28 December 2012 est.)
Debt - external$412.2 billion (31 December 2013 est.)
$378.9 billion (31 December 2012 est.)
Stock of direct foreign investment - at home$310 billion (30 November 2013 est.)
$225.1 billion (31 December 2012 est.)
Stock of direct foreign investment - abroad$120.1 billion (31 December 2013 est.)
$118.1 billion (31 December 2012 est.)
Exchange ratesIndian rupees (INR) per US dollar -
58.68 (2013 est.)
53.437 (2012 est.)
45.726 (2010 est.)
48.405 (2009)
43.319 (2008)
Fiscal year1 April - 31 March

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of August 23, 2014