Page last updated on February 19, 2013
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 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 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 tight monetary policy, intended to address persistent inflation, and a decline in investment, caused by investor pessimism about domestic 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 reforms and deficit reduction measures to reverse India's slowdown. The outlook 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 not yet fully addressed, including poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.
GDP (purchasing power parity):
$4.735 trillion (2012 est.)
country comparison to the world: 4
$4.492 trillion (2011 est.)
$4.205 trillion (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$1.947 trillion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
5.4% (2012 est.)
country comparison to the world: 50
6.8% (2011 est.)
10.1% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$3,900 (2012 est.)
country comparison to the world: 164
$3,700 (2011 est.)
$3,500 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 17%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
18%
services:
65% (2011 est.)
Labor force:
498.4 million (2012 est.)
country comparison to the world: 2
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 53%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
19%
services:
28% (2011 est.)
Unemployment rate:
9.9% (2012 est.)
country comparison to the world: 108
9.8% (2011 est.)
[see also:
Unemployment rate country ranks ]
Population below poverty line:
29.8% (2010 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)
Distribution of family income - Gini index:
36.8 (2004)
country comparison to the world: 76
37.8 (1997)
[see also:
Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
30% of GDP (2012 est.)
country comparison to the world: 19
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $171.5 billion
[see also: Budget revenues country ranks ]
expenditures:
$281 billion (2012 est.)
Taxes and other revenues:
8.8% of GDP (2012 est.)
country comparison to the world: 209
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-5.6% of GDP (2012 est.)
country comparison to the world: 166
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
51.9% of GDP (2012 est.)
country comparison to the world: 60
50.5% 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
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
9.2% (2012 est.)
country comparison to the world: 195
8.9% (2011 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Central bank discount rate:
5.5% (31 December 2010 est.)
country comparison to the world: 62
6% (31 December 2009 est.)
note:
the Indian central bank's policy rate - the repurchase rate - was 8% during December 2012
[see also:
Central bank discount rate country ranks ]
Commercial bank prime lending rate:
10.8% (31 December 2012 est.)
country comparison to the world: 90
10.19% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$342.3 billion (31 December 2012 est.)
country comparison to the world: 16
$305.7 billion (31 December 2011 est.)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$1.451 trillion (31 December 2012 est.)
country comparison to the world: 15
$1.293 trillion (31 December 2011 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$1.402 trillion (31 December 2012 est.)
country comparison to the world: 14
$1.249 trillion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$1.015 trillion (31 December 2011)
country comparison to the world: 9
$1.616 trillion (31 December 2010)
$1.179 trillion (31 December 2009)
[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:
4.8% (2011 est.)
country comparison to the world: 68
[see also: Industrial production growth rate country ranks ]
Current account balance:
-$80.15 billion (2012 est.)
country comparison to the world: 192
-$46.91 billion (2011 est.)
[see also:
Current account balance country ranks ]
Exports:
$309.1 billion (2012 est.)
country comparison to the world: 18
$305 billion (2011 est.)
[see also:
Exports country ranks ]
Exports - commodities:
petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel
Exports - partners:
UAE 12.7%, US 10.8%, China 6.2%, Singapore 5.3%, Hong Kong 4.1% (2011)
Imports:
$500.3 billion (2012 est.)
country comparison to the world: 9
