INDIAN ECONOMY

BY AMBUJ RAJ
The economy of India is the seventh-largest in the world measured by nominal GDP and the third-largest by purchasing power parity (PPP). The country is classified as a newly industrialised country, and one of the G-20 major economies, with an average growth rate of approximately 7% over the last two decades. Maharashtra is the wealthiest Indian state with an annual nominal GDP of US$330 billion,[35] roughly equivalent to those of Venezuela and the United Arab Emirates, and accounts for 13.4% of India's GDP followed by the states of Tamil Nadu (US$170 billion) and Uttar Pradesh (US$150 billion).[36] India's economy became the world's fastest growing major economy in the last quarter of 2014, surpassing the People's Republic of China.[37]
The long-term growth prospective of the Indian economy is positive due to its young population, corresponding low dependency ratio, healthy savings [38] and investment rates, and increasing integration into the global economy.[39] The Indian economy has the potential to become the world's 3rd-largest economy by the next decade, and one of the two largest economies by mid-century.[40][41][42] And the outlook for short-term growth is also good as according to the IMF, the Indian economy is the "bright spot" in the global landscape.[43] India also topped the World Bank's growth outlook for 2015-16 for the first time with the economy having grown 7.6% in 2015-16.[44] Growth is expected to decline slightly to 7.1% in the 2016-17 fiscal year.[45]
India has one of the fastest growing service sectors in the world with annual growth rate of above 9% since 2001, which contributed to 57% of GDP in 2012-13.[46] India has become a major exporter of IT services, BPO services, and software services with $167.0 billion worth of service exports in 2013-14. It is also the fastest-growing part of the economy.[47] The IT industry continues to be the largest private sector employer in India.[48][49] India is also the third largest start-up hub in the world with over 3,100 technology start-ups in 2014-15[50] The agricultural sector is the largest employer in India's economy but contributes to a declining share of its GDP (17% in 2013-14). India ranks second worldwide in farm output.[51] The Industry sector has held a constant share of its economic contribution (26% of GDP in 2013-14).[52] The Indian auto mobile industry is one of the largest in the world with an annual production of 21.48 million vehicles (mostly two and three wheelers) in FY 2013-14.[53] India has $600 billion worth of retail market in 2015 and one of world's fastest growing E-Commerce markets.[54][55]
India's two largest stock exchanges, Bombay Stock Exchange and National Stock Exchange of India, had a market capitalisation of US$1.71 trillion and US$1.68 trillion respectively as of February 2015, which ranks 11th & 12 largest in the world respectively according to the World Federation of Exchanges.[56] India is also home to world's third largest billionaires pool with 111 billionaires in 2016 and the fourth largest number of ultra-high-net-worth households that have more than US$100 million.[57]
Economy of India
Economy
Mumbai, Maharashtra is considered the financial capital of India[1][2]
CurrencyIndian rupee (INR) (1₹) = 100 Paise
1 April – 31 March
Trade organizations
WTO, SAFTA, BRICS, G-20, East Asia Summit, G8+5, SAARC, AIIB, BIMSTEC, RCEP, International Monetary Fund, World Bank, SCO, United Nations
Statistics
GDP$2.25 trillion (nominal; 2016)[3]
$8.72 trillion (PPP; 2016)[4]
GDP rank6th (nominal) / 3rd (PPP)
GDP growth
7.2% (2014), 7.6% (2015),
7.0% (2016e), 7.6% (2017f)[5]
GDP per capita
$1,719 (nominal; 2016)
$8,721 (PPP; 2016)[4]
GDP per capita rank
140th (nominal) / 122nd (PPP)
GDP by sector
Agriculture: 16.5%
Industry: 29.8%
Services: 45.4% (2016 est.)[6]
 3.17% (January 2017)[7]
Steady 6.75% (as on 24 March 2017)[8]
Population below poverty line
 12.4% of population below the poverty line of $1.90/day
(2011-12, World Bank)[9][10]
33.9 (2013)[11]
Increase 0.624 (2015) medium [12]
Labour force
513.7 million (2016 est.)[13]
Labour force by occupation
Agriculture: 49%
Industry: 20%
Services: 31% (2012 est.)
Unemployment4.9% Urban
5.1% Rural
5.0% National
(2016, Labour Bureau)[14]
Average gross salary
GNI per capita (PPP): $6,030 yearly per person (2015);[15]
Average household income: $8,671 yearly (2011)[16]
Main industries
software, petroleum products, chemicals, pharmaceuticals, agriculture, textiles, steel, transportation equipment, machinery, leather, cement, mining, construction[17][18]
130 (2017)
(Increase 1 YoY)[19]
External
Exports$272.4 billion (2015 est.)[20]
Export goods
software, petrochemicals, agriculture, leather, jewellery, engineering goods,[21] pharmaceuticals, textiles, chemicals, transportation, ores and other commodities[18]
Main export partners
 European Union (16.9%)
 United States (15.2%)
 United Arab Emirates (11.3%)
 Hong Kong (4.6%) (2015)[20]
Imports$409.2 billion (2015 est.)[20]
Import goods
crude oil, gold and precious stones, electronics, engineering goods,[21]chemicals, plastics, coal and ores, iron and steel, vegetable oil and other commodities[18]
Main import partners
 China (15.8%)
 European Union (11.2%)
 Saudi Arabia (5.5%)
  Switzerland (5.4%) (2015)[20]
FDI stock
Inward: $282.27 billion
Outward: $138.97 billion (2015)[22]
 1.1% of GDP ($22.1 billion) (2015–16)[23]
$479.7 billion
(as on 30 June 2016)[24][25]
-$364.7 billion
(as of December 2016)[26]
(Increase $3.8 billion QoQ)
Public finances
65.55% of GDP (2017, IMF)[27][28]
3.5% of GDP (2016–17)[29][28][30]
Revenues₹35.64 trillion (US$550 billion) (2017, IMF)[31]
Expenses₹47.12 trillion (US$730 billion) (2017, IMF)[31]
Economic aidIncrease $2.98 billion (2014)[32]
BBB- (Domestic)
BBB- (Foreign)
BBB+ (T&C Assessment)
Outlook: Stable
(Standard & Poor's)[33]
Foreign reserves
$369.954 billion (8th)
(as on 31 March 2017)[34]

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