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India Economy Profile 2013

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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 have served to accelerate the country's growth, which averaged under 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more 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. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth began slowing in 2011 because of a slowdown in government spending and a decline in investment, caused by investor pessimism about the government's commitment to further economic reforms and about the global situation. High international crude prices have exacerbated the government's fuel subsidy expenditures, contributing to a higher fiscal deficit and a worsening current account deficit. In late 2012, the Indian Government announced additional reforms and deficit reduction measures to reverse India's slowdown, including allowing higher levels of foreign participation in direct investment in the economy. The outlook for India's medium-term growth is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term 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, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.
GDP (purchasing power parity)$4.761 trillion (2012 est.)
$4.579 trillion (2011 est.)
$4.25 trillion (2010 est.)
note: data are in 2012 US dollars
GDP (official exchange rate)$1.825 trillion (2012 est.)
GDP - real growth rate6.5% (2012 est.)
7.7% (2011 est.)
11.2% (2010 est.)
GDP - per capita (PPP)$3,900 (2012 est.)
$3,800 (2011 est.)
$3,600 (2010 est.)
note: data are in 2012 US dollars
Gross national saving27.9% of GDP (2012 est.)
30.1% of GDP (2011 est.)
31.9% of GDP (2010 est.)
GDP - composition, by end usehousehold consumption: 56.9%
government consumption: 11.8%
investment in fixed capital: 29.9%
investment in inventories: 8.4%
exports of goods and services: 24.3%
imports of goods and services: -31.3%
(2012 est.)
GDP - composition by sectoragriculture: 17.4%
industry: 26.1%
services: 56.5% (2012 est.)
Population below poverty line29.8% (2010 est.)
Labor force486.6 million (2012 est.)
Labor force - by occupationagriculture: 53%
industry: 19%
services: 28% (2011 est.)
Unemployment rate8.5% (2012 est.)
9.8% (2011 est.)
Unemployment, youth ages 15-24total: 10.2%
male: 9.8%
female: 11.5% (2010)
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)
Investment (gross fixed)29.9% of GDP (2012 est.)
Budgetrevenues: $169.4 billion
expenditures: $267.7 billion (2012 est.)
Taxes and other revenues9.3% of GDP (2012 est.)
Budget surplus (+) or deficit (-)-5.4% of GDP (2012 est.)
Public debt49.6% of GDP (2012 est.)
49.8% of GDP (2011 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)9.3% (2012 est.)
8.9% (2011 est.)
Central bank discount rate5.5% (31 December 2010 est.)
6% (31 December 2009 est.)
note: the Indian central bank's policy rate - the repurchase rate - was 8% during December 2012
Commercial bank prime lending rate10.63% (31 December 2012 est.)
10.19% (31 December 2011 est.)
Stock of narrow money$323 billion (31 December 2012 est.)
$305.7 billion (31 December 2011 est.)
Stock of broad money$1.451 trillion (31 December 2012 est.)
$1.293 trillion (31 December 2011 est.)
Stock of domestic credit$1.412 trillion (31 December 2012 est.)
$1.249 trillion (31 December 2011 est.)
Market value of publicly traded shares$1.015 trillion (31 December 2011)
$1.616 trillion (31 December 2010)
$1.179 trillion (31 December 2009)
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 rate3.1% (2012 est.)
Current Account Balance-$80.15 billion (2012 est.)
-$46.91 billion (2011 est.)
Exports$298.4 billion (2012 est.)
$307.2 billion (2011 est.)
Exports - commoditiespetroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel
Exports - partnersUS 12.7%, UAE 12.3%, China 5%, Singapore 5%, Hong Kong 4.1% (2012)
Imports$500.4 billion (2012 est.)
$475.3 billion (2011 est.)
Imports - commoditiescrude oil, precious stones, machinery, fertilizer, iron and steel, chemicals
Imports - partnersChina 11%, UAE 7.7%, Saudi Arabia 6.7%, Switzerland 5.9%, US 4.9% (2012)
Reserves of foreign exchange and gold$297.8 billion (31 December 2012 est.)
$297.9 billion (31 December 2011 est.)
Debt - external$376.3 billion (31 December 2012 est.)
$334.3 billion (31 December 2011 est.)
Stock of direct foreign investment - at home$229.2 billion (31 December 2012 est.)
$203.9 billion (31 December 2011 est.)
Stock of direct foreign investment - abroad$117.5 billion (31 December 2012 est.)
$108.8 billion (31 December 2011 est.)
Exchange ratesIndian rupees (INR) per US dollar -
53.437 (2012 est.)
46.671 (2011 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 February 21, 2013