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India vs. Afghanistan

Economy

IndiaAfghanistan
Economy - overviewIndia'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. 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.

Growth rebounded in 2014 through 2016, exceeding 7% each year, but slowed in 2017. 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. 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. Despite a high growth rate compared to the rest of the world, India’s government-owned banks faced mounting bad debt in 2015 and 2016, resulting in low credit growth and restrained economic growth.

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, 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.
Afghanistan is gradually recovering from decades of conflict. Before 2014, the economy had sustained nearly a decade of strong growth, largely because of international assistance. Since 2014, however, the economy has slowed, in large part because of the withdrawal of nearly 100,000 foreign troops that had artificially inflated the country’s economic growth. Despite improvements in life expectancy, incomes, and literacy since 2001, Afghanistan is extremely poor, landlocked, and highly dependent on foreign aid. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs. Corruption, insecurity, weak governance, lack of infrastructure, and the Afghan Government's difficulty in extending rule of law to all parts of the country pose challenges to future economic growth. Afghanistan's living standards are among the lowest in the world.

The international community remains committed to Afghanistan's development, pledging over $83 billion at ten donors' conferences between 2003 and 2016. In October 2016, the donors at the Brussels conference pledged an additional $3.8 billion in development aid annually from 2017 to 2020. Despite this help, the Government of Afghanistan will need to overcome a number of challenges, including low revenue collection, anemic job creation, high levels of corruption, weak government capacity, and poor public infrastructure.

In 2017 Afghanistan's growth rate was only marginally above that of the 2014-2016 average. The drawdown of international security forces that started in 2012 has negatively affected economic growth, as a substantial portion of commerce, especially in the services sector, has catered to the ongoing international troop presence in the country. Afghan President Ashraf GHANI Ahmadzai is dedicated to instituting economic reforms to include improving revenue collection and fighting corruption. However, the reforms will take time to implement and Afghanistan will remain dependent on international donor support over the next several years.
GDP (purchasing power parity)$9.447 trillion (2017 est.)
$8.852 trillion (2016 est.)
$8.265 trillion (2015 est.)
note: data are in 2017 dollars
$69.51 billion (2017 est.)
$67.81 billion (2016 est.)
$66.25 billion (2015 est.)
note: data are in 2017 dollars
GDP - real growth rate6.7% (2017 est.)
7.1% (2016 est.)
8% (2015 est.)
2.5% (2017 est.)
2.4% (2016 est.)
1.3% (2015 est.)
GDP - per capita (PPP)$7,200 (2017 est.)
$6,800 (2016 est.)
$6,400 (2015 est.)
note: data are in 2017 dollars
$1,900 (2017 est.)
$2,000 (2016 est.)
$2,100 (2015 est.)
note: data are in 2017 dollars
GDP - composition by sectoragriculture: 16.8%
industry: 28.9%
services: 46.6% (2017 est.)
agriculture: 22%
industry: 22%
services: 56%
note: data exclude opium production (2015 est.)
Population below poverty line21.9% (2011 est.)
35.8% (2011 est.)
Household income or consumption by percentage sharelowest 10%: 3.6%
highest 10%: 29.8% (2011)
lowest 10%: 3.8%
highest 10%: 24% (2008)
Inflation rate (consumer prices)3.8% (2017 est.)
4.5% (2016 est.)
6% (2017 est.)
4.4% (2016 est.)
Labor force521.9 million (2017 est.)
7.983 million (2013 est.)
Labor force - by occupationagriculture: 47%
industry: 22%
services: 31% (FY 2014 est.)
agriculture: 78.6%
industry: 5.7%
services: 15.7% (FY08/09 est.)
Unemployment rate8.8% (2017 est.)
8% (2016 est.)
35% (2008 est.)
40% (2005 est.)
Budgetrevenues: $248.7 billion
expenditures: $330.3 billion (2017 est.)
revenues: $1.992 billion
expenditures: $6.636 billion (2016 est.)
Industriestextiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals
small-scale production of bricks, textiles, soap, furniture, shoes, fertilizer, apparel, food products, non-alcoholic beverages, mineral water, cement; handwoven carpets; natural gas, coal, copper
Industrial production growth rate7.5% (2017 est.)
2.4% (2014 est.)
Agriculture - productsrice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish
opium, wheat, fruits, nuts; wool, mutton, sheepskins, lambskins, poppies
Exports$299.3 billion (2017 est.)
$268.6 billion (2016 est.)
$619.2 million (2016 est.)
$580 million (2015 est.)
note: not including illicit exports or reexports
Exports - commoditiespetroleum products, precious stones, vehicles, machinery, iron and steel, chemicals, pharmaceutical products, cereals, apparel
opium, fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems
Exports - partnersUS 16%, UAE 11.7%, Hong Kong 5.1% (2016)
Pakistan 46.3%, India 37.6% (2016)
Imports$426.8 billion (2017 est.)
$376.1 billion (2016 est.)
$6.16 billion (2016 est.)
$7.034 billion (2015 est.)
Imports - commoditiescrude oil, precious stones, machinery, chemicals, fertilizer, plastics, iron and steel
machinery and other capital goods, food, textiles, petroleum products
Imports - partnersChina 17%, US 5.8%, UAE 5.4%, Saudi Arabia 5.2%, Switzerland 4.2% (2016)
Iran 19.3%, Pakistan 18.3%, China 16.7%, Kazakhstan 9.5%, Uzbekistan 6.1%, Turkmenistan 5.4%, Malaysia 4% (2016)
Debt - external$483.4 billion (31 December 2017 est.)
$456.4 billion (31 December 2016 est.)
$1.28 billion (FY10/11)
$2.7 billion (FY08/09)
Exchange ratesIndian rupees (INR) per US dollar -
65.17 (2017 est.)
67.195 (2016 est.)
67.195 (2015 est.)
64.152 (2014 est.)
61.03 (2013 est.)
afghanis (AFA) per US dollar -
67.87 (2016 est.)
67.87 (2016 est.)
67.87 (2015)
61.14 (2014 est.)
57.25 (2013 est.)
Fiscal year1 April - 31 March
21 December - 20 December
Public debt50.1% of GDP (2017 est.)
50.3% 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 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
8.3% of GDP (2016 est.)
9.3% of GDP (2015 est.)
Reserves of foreign exchange and gold$407.2 billion (31 December 2017 est.)
$359.7 billion (31 December 2016 est.)
$6.477 billion (31 December 2016 est.)
$6.232 billion (31 December 2015 est.)
Current Account Balance-$33.68 billion (2017 est.)
-$15.23 billion (2016 est.)
$999 million (2017 est.)
$1.372 billion (2016 est.)
GDP (official exchange rate)$2.439 trillion (2016 est.)
$21.06 billion (2016 est.)
Market value of publicly traded shares$1.516 trillion (31 December 2015 est.)
$1.558 trillion (31 December 2014 est.)
$1.139 trillion (31 December 2013 est.)
$NA
Commercial bank prime lending rate9.6% (31 December 2017 est.)
9.67% (31 December 2016 est.)
15% (31 December 2016 est.)
15% (31 December 2015 est.)
Stock of domestic credit$1.795 trillion (31 December 2017 est.)
$1.622 trillion (31 December 2016 est.)
$-240.6 million (31 December 2016 est.)
$-240.6 million (31 December 2016 est.)
Stock of narrow money$429.3 billion (31 December 2017 est.)
$294.4 billion (31 December 2016 est.)
$6.644 billion (31 December 2014 est.)
$6.192 billion (31 December 2013 est.)
Stock of broad money$2.063 trillion (31 December 2017 est.)
$1.773 trillion (31 December 2016 est.)
$6.945 billion (31 December 2014 est.)
$6.544 billion (31 December 2013 est.)
Taxes and other revenues10.2% of GDP (2017 est.)
9.5% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-3.3% of GDP (2017 est.)
-22.1% of GDP (2016 est.)
GDP - composition, by end usehousehold consumption: 58.7%
government consumption: 11.6%
investment in fixed capital: 27.5%
investment in inventories: 4%
exports of goods and services: 18.4%
imports of goods and services: -20.2% (2017 est.)
household consumption: 108.6%
government consumption: 12.8%
investment in fixed capital: 18.2%
investment in inventories: 0%
exports of goods and services: 6.6%
imports of goods and services: -46.2% (2014 est.)
Gross national saving28.6% of GDP (2017 est.)
29.7% of GDP (2016 est.)
31.8% of GDP (2015 est.)
22.7% of GDP (2017 est.)
25.5% of GDP (2016 est.)
21.4% of GDP (2015 est.)

Source: CIA Factbook