Economy Of India

Economy - overview:

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 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 more than half of India's output, with only 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 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. Merchandise exports, which account for about 15% of GDP, returned to pre-financial crisis levels. An industrial expansion and high food prices, resulting from the combined effects of the weak 2009 monsoon and inefficiencies in the government's food distribution system, fueled inflation which peaked at about 11% in the first half fo 2010, but has gradually decreased to single digits following a series of central bank interest rate hikes. New Delhi in 2010 reduced subsidies in fuel and fertilizers, sold a small percentage of its shares in some state-owned enterprises and auctioned off rights to radio bandwidth for 3G telecommunications in part to lower the government's deficit. The Indian Government seeks to reduce its deficit to 5.5% of GDP in FY 2010-11, down from 6.8% in the previous fiscal year. India's long term challenges include widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, insufficient access to quality basic and higher education, and accommodiating rual-to-urban migration.
GDP (purchasing power parity):
$4.046 trillion (2010 est.)
country comparison to the world: 5

$3.736 trillion (2009 est.)

$3.478 trillion (2008 est.)
note: data are in 2010 US dollars
[see also: GDP (purchasing power parity) country ranks ] GDP (official exchange rate):
$1.43 trillion (2009 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
8.3% (2010 est.)
country comparison to the world: 7

7.4% (2009 est.)

7.4% (2008 est.)
[see also: GDP - real growth rate country ranks ] GDP - per capita:
$3,400 (2010 est.)
country comparison to the world: 164

$3,200 (2009 est.)

$3,000 (2008 est.)
note: data are in 2010 US dollars
[see also: GDP - per capita country ranks ] GDP - composition by sector:
agriculture: 16.1%
[see also: GDP - composition by sector - agriculture country ranks ]
industry: 28.6%
[see also: GDP - composition by sector - industry country ranks ]
services: 55.3% (2009)
[see also: GDP - composition by sector - services country ranks ]
Labor force:
478.3 million (2009 est.)
country comparison to the world: 2
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 52%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 14%
[see also: Labor force - by occupation - industry country ranks ]
services: 34% (2009 est.)
[see also: Labor force - by occupation - services country ranks ]
Unemployment rate:
10.8% (2010 est.)
country comparison to the world: 118

10.7% (2009 est.)
[see also: Unemployment rate country ranks ] Population below poverty line:
25% (2007 est.)
[see also: Population below poverty line country ranks ]
Household income or consumption by percentage share:
lowest 10%: 3.6%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 31.1% (2005)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]
Distribution of family income - Gini index:
36.8 (2004)
country comparison to the world: 79

37.8 (1997)
[see also: Distribution of family income - Gini index country ranks ] Investment (gross fixed):
32% of GDP (2009 est.)
country comparison to the world: 13
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $170.7 billion
[see also: Budget - revenues country ranks ]
expenditures: $257.4 billion (2009 est.)
[see also: Budget - expenditures country ranks ]
Public debt:
55.9% of GDP (2010 est.)
country comparison to the world: 42

57.3% of GDP (2009 est.)
[see also: Public debt country ranks ] Inflation rate (consumer prices):
11.7% (2010 est.)
country comparison to the world: 205

10.9% (2009 est.)
[see also: Inflation rate (consumer prices) country ranks ] Central bank discount rate:
6% (31 December 2009)
country comparison to the world: 74

6% (31 December 2008)
[see also: Central bank discount rate country ranks ] Commercial bank prime lending rate:
12.19% (31 December 2009 est.)
country comparison to the world: 59

13.31% (31 December 2008 est.)
[see also: Commercial bank prime lending rate country ranks ] Stock of narrow money:
$328.4 billion (31 December 2010 est)

$268.4 billion (31 December 2009 est)
[see also: Stock of narrow money country ranks ] Stock of broad money:
$1.29 trillion (31 December 2010 est.)

$1.04 trillion (31 December 2009 est.)
[see also: Stock of broad money country ranks ] Stock of domestic credit:
$1.164 trillion (31 December 2010 est.)
country comparison to the world: 14

$938.8 billion (31 December 2009 est.)
[see also: Stock of domestic credit country ranks ] Market value of publicly traded shares:
$1.179 trillion (31 December 2009)
country comparison to the world: 14

$645.5 billion (31 December 2008)

$1.819 trillion (31 December 2007)
[see also: Market value of publicly traded shares country ranks ] Agriculture - products:
rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish
Industries:
textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals
Industrial production growth rate:
9.7% (2009 est.)
country comparison to the world: 17
[see also: Industrial production growth rate country ranks ]
Electricity - production:
723.8 billion kWh (2009 est.)
country comparison to the world: 6
[see also: Electricity - production country ranks ]
Electricity - consumption:
568 billion kWh (2007 est.)
country comparison to the world: 6
[see also: Electricity - consumption country ranks ]
Electricity - exports:
810 million kWh (2009 est.)
[see also: Electricity - exports country ranks ]
Electricity - imports:
5.27 billion kWh (2009 est.)
[see also: Electricity - imports country ranks ]
Oil - production:
878,700 bbl/day (2009 est.)
country comparison to the world: 24
[see also: Oil - production country ranks ]
Oil - consumption:
2.98 million bbl/day (2009 est.)
country comparison to the world: 5
[see also: Oil - consumption country ranks ]
Oil - exports:
738,600 bbl/day (2007 est.)
country comparison to the world: 23
[see also: Oil - exports country ranks ]
Oil - imports:
2.9 million bbl/day (2007 est.)
country comparison to the world: 6
[see also: Oil - imports country ranks ]
Oil - proved reserves:
5.8 billion bbl (1 January 2010 est.)
country comparison to the world: 23
[see also: Oil - proved reserves country ranks ]
Natural gas - production:
38.65 billion cu m (2009 est.)
country comparison to the world: 22
[see also: Natural gas - production country ranks ]
Natural gas - consumption:
51.27 billion cu m (2009 est.)
country comparison to the world: 16
[see also: Natural gas - consumption country ranks ]
Natural gas - exports:
0 cu m (2008 est.)
country comparison to the world: 170
[see also: Natural gas - exports country ranks ]
Natural gas - imports:
12.62 billion cu m (2009 est.)
country comparison to the world: 17
[see also: Natural gas - imports country ranks ]
Natural gas - proved reserves:
1.075 trillion cu m (1 January 2010 est.)
country comparison to the world: 26
[see also: Natural gas - proved reserves country ranks ]
Current account balance:
-$26.91 billion (2010 est.)
country comparison to the world: 181

-$26.63 billion (2009 est.)
[see also: Current account balance country ranks ] Exports:
$201 billion (2010 est.)
country comparison to the world: 22

$168.2 billion (2009 est.)
[see also: Exports country ranks ] Exports - commodities:
petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel
Exports - partners:
UAE 12.87%, US 12.59%, China 5.59% (2009)
Imports:
$327 billion (2010 est.)
country comparison to the world: 13

$274.3 billion (2009 est.)
[see also: Imports country ranks ] Imports - commodities:
crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals
Imports - partners:
China 10.94%, US 7.16%, Saudi Arabia 5.36%, UAE 5.18%, Australia 5.02%, Germany 4.86%, Singapore 4.02% (2009)
Reserves of foreign exchange and gold:
$284.1 billion (31 December 2010 est.)
country comparison to the world: 6

$274.7 billion (31 December 2009 est.)
[see also: Reserves of foreign exchange and gold country ranks ] Debt - external:
$237.1 billion (31 December 2010 est.)
country comparison to the world: 28

$221.3 billion (31 December 2009 est.)
[see also: Debt - external country ranks ] Stock of direct foreign investment - at home:
$191.1 billion (31 December 2010 est.)
country comparison to the world: 23

$157.9 billion (31 December 2009 est.)
[see also: Stock of direct foreign investment - at home country ranks ] Stock of direct foreign investment - abroad:
$89.04 billion (31 December 2010 est.)
country comparison to the world: 26

$76.62 billion (31 December 2009 est.)
[see also: Stock of direct foreign investment - abroad country ranks ] Exchange rates:
Indian rupees (INR) per US dollar - 46.163 (2010), 48.405 (2009), 43.319 (2008), 41.487 (2007), 45.3 (2006)