India Overview of Economy

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India Overview of Economy

A brief guide to India economy, India economy overview, Inflation rates GDP and other economic indicators in India.

The Indian economy is without doubt a key player in the world economy.
Despite the fact that in 2003 the per capita GDP was relatively low at 2,900 dollars (PPP) the Indian economy is still considered the twelfth largest in the world, and the third largest in Asia after China and Japan.
The Indian economy is extremely diversified, from advanced technology including a space program, nuclear energy, etc, to agriculture.
Agricultural activity in India contributes only 23% to the GDP but employs approximately 67% of the work force.
This places a burden on the Indian economy.
On the other hand, India exploits the considerable command of the English language and the technological abilities of certain sections of the population.
Of the one billion residents over 320 million have an income that enables them to purchase consumer goods while on the other hand, 25% live below the poverty line.
From 1991 and particularly from 1999 onwards, the Indian economy has undergone a process of economic reform that includes, among other matters, reform in all that is connected with liberalization of investments by foreign residents, currency exchange and tax relief polices.
Nevertheless, management of the Indian economy is influenced to no small extent by a particularly undeveloped infrastructure and bureaucracy. Also, increases in the price of oil are detrimental to the progress of the Indian economy.

  • The services sector contributes some 51% to the Indian economy, industry contributes approximately 26% and the balance of approximately 23% has its source in agriculture and forestry.
  • The main exports from India are textile products, diamonds and precious stones, chemicals and leather goods.
    In 2003, India's exports totaled some 53 billion dollars and imports in the same year amounted to some 74.3 billion dollars.
  • The main imports to India are fuel, machinery and chemicals.
    India's main trading partners are the United States, China and the UK.
    In 2003, the main exports, approximately, 21% were to the United States, with some 6% to China and approximately 5% each to the UK and Hong Kong.
  • The main imports into India in 2003 were from the United States - approximately 7%, from Belgium - approximately 6% and, some 5% each from China and the UK.
  • From the aspect of natural resources, a wide range of coal is to be found in India. The coal deposits are the fourth largest in the world. There are also iron, titanium and oil deposits and more
  • An analysis of the main indices in India shows that the GDP in 2001 - 2003 was high at between 5% to 8% per annum. Inflation in these same years fluctuates around 4% per annum.
    In 2003, the unemployment rate in India was over 9.5%, a slight rise compared to 2002.
    In 2003, the per capita GDP (PPP) in India was estimated at only 2,900 dollars which is low compared to that of the developed countries.
    The average monthly wage in India rose in 2004 by 11.4% compared to 2003, the highest increase in Asia - Pacific, higher than the increase in China.

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