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flag India India: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

India is amongst the world's 10 largest economies. The average GNP growth rate was 9.4% in average over the period 2006-07. This growth rate dropped during the global recession, the crisis affected India by the increase of risk aversion, a withdrawal of foreign capital and the drop of global demand.  However, India was a country that quickly got out of the crisis, its growth was stimulated by private consumption and by the state's expenditures.  From 5.7% in 2009, the growth has jumped up and it is expected to reach 10% in 2010 according to the estimations. 

The government has established as its priorities to continue the reforms that will allow to sustain the growth, to modernize the economic structure and to fight against poverty.  Programs concerning jobs, health, education, infrastructures and rural communities have also been announced.  The pursuit of a re-balance in public finance is also projected, the objective is to bring the deficit to 5.5% of the GDP. 

India remains a poor country: the GDP per capita is low, almost 25% of the population still lives below the poverty line and the inequalities are very strong.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 1,264.861,631.97e1,843.38e2,012.762,235.24
GDP (Constant Prices, Annual % Change) 6.810.17.8e7.58.1
GDP per Capita (USD) 1,077e1,3711,527e1,6461,804
General Government Balance (in % of GDP) -10.6-9.2e-8.3-8.0-7.9
General Government Gross Debt (in % of GDP) 69.464.162.462.060.9
Inflation Rate (%) 10.912.0e10.68.67.1
Unemployment Rate (% of the Labor Force) -10.8---
Current Account (billions USD) -35.77-42.81-40.27-43.96-41.74
Current Account (in % of GDP) -2.8-2.6-2.2-1.9-

Source: IMF - World Economic Outlook Database ; CIA - The world factbook , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

India is the world's fourth agricultural power. Agriculture contributes to about 20% of the GNP and employs close to two-thirds of the active population. The main agricultural products are: wheat, millet, rice, corn, sugar cane, tea, potatoes and cotton.  India is also the second producer of cattle, third producer of sheep and fourth in fishing production. 

Coal is the country's main energy source (India is the third largest world producer of coal). In the manufacturing industry, textile plays a predominant role. In terms of size, the chemical industry is the second largest industrial sector (12% of the GNP).

The services sector is the most dynamic part of the Indian economy.  It contributes to more than half of its GDP, and it does not employ but a third of its active population.  The software sector, which grows rapidly, is boosting the export of services and modernizing the Indian economy.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 55.8 19.0 25.2
Value Added (in % of GDP) 16.2 28.4 55.4
Value Added (Annual % Change) 5.0 9.0 9.1

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Indian Rupee (INR) - Average Annual Exchange Rate For 1 USD 45.3141.3543.5148.4145.73

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about India on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
54.6/100
Position:
Mostly unfree
World Rank:
119/179
Regional Rank:
24/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

India was a protectionist state for a long time, but the country has become progressively more open to international trade.  It has recently signed free trade agreements with South Korea and the ASEAN, and has entered into negotiations with several partners (EU, MERCOSUR, Australia, New Zealand, South Africa). 

India recorded a high commercial deficit due to the price rise of raw materials which increased the import invoices.  In regards of exports, they have recorded a lower progression during the last recent years due to the rise of the rupee in relation to the dollar (most of the exports are drawn up in dollars) and the decline of the global demand.  During the economic crisis, exports dropped at a slower rhythm than imports, creating a reduction of the commercial deficit. 

The main trade partners of India are the European Union, the United Arab Emirates, China and the United States.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 178,410229,370321,032257,202322,702
Exports of Goods (million USD) 121,808150,159194,827164,907216,162
Imports of Services (million USD) 58,22270,38887,76080,274116,906
Exports of Services (million USD) 69,45686,612103,82990,193109,514
Imports of Goods and Services (Annual % Change) 22.010.023.0-7.313.7
Exports of Goods and Services (Annual % Change) 21.85.219.3-6.74.2
Imports of Goods and Services (in % of GDP) 24.324.528.924.024.9
Exports of Goods and Services (in % of GDP) 21.320.423.519.618.5
Trade Balance (million USD) -42,804-54,827-93,142-79,665-97,934
Trade Balance (Including Service) (million USD) -31,770-38,704-74,360-67,678-91,013
Foreign Trade (in % of GDP) 45.644.952.443.643.3

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United Arab Emirates 12.4%
United States 10.7%
China 7.9%
Hong Kong 4.3%
Singapore 4.1%
See More Countries 60.5%
Main Suppliers
(% of Imports)
2010
China 12.3%
United Arab Emirates 8.8%
Switzerland 6.3%
United States 5.8%
Saudi Arabia 5.6%
See More Countries 61.3%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 16.6%
Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90) 10.1%
Articles of jewellery and parts thereof, of...Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal (excl. articles > 100 years old) 3.6%
Iron ores and concentrates, incl. roasted iron...Iron ores and concentrates, incl. roasted iron pyrites 2.8%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.3%
See More Products 64.6%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 24.4%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 10.5%
Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90) 8.2%
Coal; briquettes, ovoids and similar solid fuels...Coal; briquettes, ovoids and similar solid fuels manufactured from coal 2.7%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 1.8%
See More Products 52.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Agriculture
Ministry of Commerce and Industry
Ministry of Micro, Small and Medium Enterprises
Statistical Office
Directorate General of Commercial Intelligence & Statistics
Central Bank
Reserve Bank of India
Stock Exchange
National Stock Exchange
Bombay Stock Exchange
Search Engines
123India
Altavista India
Cyberindian
Indiaa2z
India Atlas
India Connect
Indiatimes
India-World
Indo Link
New India
Search India
Sify
Surf India
Web India
Yahoo! India
Economic Portals
Business World
Business Line
Business Standard
Business Today

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Political Outline

Executive Power

President is the chief of the state and is elected by an electoral college consisting of elected members of both houses of Parliament and the legislatures of the provinces for a five-year term.

Prime Minister is the head of the government and is chosen by parliamentary members of the majority party following legislative elections, to serve a term of five years. The President, on the recommendation of the Prime Minister, appoints the Cabinet.
Legislative Power
The legislature is bicameral. The Parliament consists of: Council of States and the People's Assembly. People of India enjoy considerable political rights.
Main Political Parties
India has a multi-party system with predominance of small regional parties.

The major political parties in the country are:

- Indian National Congress: a major political party involved in India's independence movement
- Bharatiya Janta Party: pro-Hindu, nationalist ideology,
- Communist Party of India: Marxism-Leninism,
- Bahujan Samajwadi Party: draws support from backward classes & religious minorities.

Current Political Leaders
President: Mrs. Pratiba Patil (since July 2007) - non-partisan
Prime Minister: Manmohan SINGH (since May 2004, reelected in May 2009) – INC, heading a coalition government with CPI(M) & other parties.
Next Election Dates
Presidential: July 2012
 

Indicator of Freedom of the Press

World Rank:
122/178
Evolution:
17 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
3/7

Map of freedom 2010

 

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Last Updates: January 2012