indian economy

Economy of India From Wikipedia the free encyclopedia

The economy of India is the twelfth largest economy in the world by market exchange rates[5] and the fourth largest by purchasing power parity (PPP) basis[6]

India was under social democratic-based policies from 1947 to 1991 The economy was characterised by extensive regulation protectionism and public ownership leading to pervasive corruption and slow growth[7]

[8][9][10] Since 1991 continuing economic liberalisation has moved the economy towards a market-based system[8][9] A revival of economic reforms and better economic policy in 2000s accelerated Indias economic growth rate By 2008 India had established itself as the worlds second-fastest growing major economy[11][12][13] However the year 2009 saw a significant slowdown in Indias official GDP growth rate to 61[14] as well as the return of a large projected fiscal deficit of 103 of GDP which would be among the highest in the world[15][16]

Indias large service industry accounts for 54 of the countrys GDP while the industrial and agricultural sector contribute 29 and 17 respectively Agriculture is the predominant occupation in India accounting for about 60 of employment The service sector makes up a further 28 and industrial sector around 12[17] The labor force totals half a billion workers Major agricultural products include rice wheat oilseed cotton jute tea sugarcane potatoes cattle water buffalo sheep goats poultry and fish[18] Major industries include textiles chemicals food processing steel transportation equipment cement mining petroleum machinery information technology enabled services and software[18]

Economy of India

Currency 1 Indian Rupee (INR) (₨) = 100 Paise

Fiscal year April 1March 31

Trade

organisations

WTO SAFTA

Statistics

GDP $1209 trillion (2008 est)[1]

GDP growth 67 (2009)[2]

GDP per capita $1016 [3]

GDP by sector agriculture 172 industry 291

services 537 (2008 est)

Inflation (CPI) 78 (CPI) (2008)

Population

below poverty

line

22 (2008)[4]

Labour force 5235 million (2008 est)

Labour force

by occupation

agriculture 60 industry 12 services

28 (2003)

Unemployment 68 (2008 est)

Main industries textiles chemicals food processing steel

transportation equipment cement mining

petroleum machinery software

External

Exports $1757 billion fob (2008 est)

Export goods petroleum products textile goods gems

and jewelry engineering goods

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Indias per capita income (nominal) is $1016 ranked 142th in the world[19] while its per capita (PPP) of US$2762 is ranked 129th[20][21] Previously a closed economy Indias trade has grown fast[8] India currently accounts for 15 of World trade as of 2007 according to the WTO According to the World Trade Statistics of the WTO in 2006 Indias total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and Indias services trade inclusive of export and import was $143 billion Thus Indias global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion up by a record 72 from a level of $253 billion in 2004 Indias trade has reached a still relatively moderate share 24 of GDP in 2006 up from 6 in 1985[8]

Despite robust economic growth India continues to face many major problems The recent economic development has widened the economic inequality across the country[22] Despite sustained high economic growth rate approximately 80 of its population lives on less than $2 a day (nominal) more than double the same poverty rate in China[23] Even though the arrival of Green Revolution brought end to famines in India[24] 40 of children under the age of three are underweight and a third of all men and women suffer from chronic energy deficiency[25]

Goldman Sachs predicts that inspite of the high growth rate India will continue to remain a low-income country for several decades with per capita incomes well below its other BRIC peers[10]

chemicals leather manufactures

Main export

partners

US 15 the Peoples Republic of China

87 UAE 87 UK 44 (2007)

Imports $2875 billion fob (2008 est)

Import goods crude oil machinery gems fertilizer

chemicals

Main import

partners

Peoples Republic of China 106 US

78 Germany 44 Singapore 44

Public finances

Public debt $1638 billion (2008)

Revenues $1535 billion (2008 est)

Expenses $2053 billion (2008 est)

Main data source CIA World Fact Book

All values unless otherwise stated are in US dollars

Contents

1 History 11 Pre-colonial 12 Colonial 13 Independence to 1991 14 After 1991

2 Sectors 21 Agriculture 22 Industry and services 23 Banking and finance 24 Natural resources

3 External trade and investment 31 Global trade relations 32 Balance of payments

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History

Main articles Economic history of India and Timeline of the economy of India

Indias economic history can be broadly divided into three eras beginning with the pre-colonial period lasting up to the 17th century The advent of British colonisation started the colonial period in the 17th century which ended with independence in 1947 The third period stretches from independence in 1947 until now

Pre-colonial

The citizens of the Indus Valley civilisation a permanent and predominantly urban settlement that flourished between 2800 BC and 1800 BC practiced agriculture domesticated animals used uniform weights and measures made tools and weapons and traded with other cities Evidence of well planned streets a drainage system and water supply reveals their knowledge of urban planning which included the worlds first urban sanitation systems and the existence of a form of municipal government[28]

The 1872 census revealed that 993 of the population of the region constituting present-day India resided in villages[29] whose economies were largely isolated and self-sustaining with agriculture the predominant occupation This satisfied the food requirements of the village and provided raw materials for hand-based industries such as textiles food processing and crafts Although many kingdoms and rulers issued coins barter was prevalent Villages paid a portion of their agricultural

33 Foreign direct investment in India

4 Currency 5 Income and consumption 6 Employment 7 Economic trends

71 Issues 711 Agriculture 712 Corruption 713 Government 714 Education 715 Infrastructure 716 Labour laws 717 Economic disparities 718 Environment and health

8 See also 9 Notes 10 References 11 External links

Silver coin minted during the

reign of the Gupta king Kumara Gupta I (AD 41455)

The spice trade between India and

Europe was one of the main drivers of the world economy[26] and the main catalyst for the Age

of Discovery[27]



produce as revenue to the rulers while its craftsmen received a part of the crops at harvest time for their services[30]

Religion especially Hinduism and the caste and the joint family systems played an influential role in shaping economic activities[31] The caste system functioned much like medieval European guilds ensuring the division of labour providing for the training of apprentices and in some cases allowing manufacturers to achieve narrow specialization For instance in certain regions producing each variety of cloth was the specialty of a particular sub-caste

Textiles such as muslin Calicos shawls and agricultural products such as pepper cinnamon opium and indigo were exported to Europe the Middle East and South East Asia in return for gold and silver[33]

Assessment of Indias pre-colonial economy is mostly qualitative owing to the lack of quantitative information One estimate puts the revenue of Akbars Mughal Empire in 1600 at pound175 million in contrast with the total revenue of Great Britain in 1800 which totalled pound16 million[34] India by the time of the arrival of the British was a largely

traditional agrarian economy with a dominant subsistence sector dependent on primitive technology It existed alongside a competitively developed network of commerce manufacturing and credit After the decline of the Mughals western central and parts of south and north India were integrated and administered by the Maratha Empire The Maratha Empires budget in 1740s at its peak was Rs 100 million After the loss at Panipat the Maratha Empire disintegrated into confederate states of Gwalior Baroda Indore Jhansi Nagpur Pune and Kolhapur Gwalior state had a budget of Rs 30M However at this time British East India company entered the Indian political theatre Until 1857 when India was firmly under the British crown the country remained in a state of political instability due to internecine wars and conflicts[35]

Colonial

Company rule in India brought a major change in the taxation environment from revenue taxes to property taxes resulting in mass impoverishment and destitution of majority of farmers and led to numerous famines[36] The economic policies of the British Raj effectively bankrupted Indias large handicrafts industry and caused a massive drain of Indias resources[37][38] Indian Nationalists employed the successful Swadeshi movement as strategy to diminish British economic superiority by boycotting British products and the reviving the market for domestic-made products and production techniques India had become a strong market for superior finished European goods This was because of vast gains made by the Industrial revolution in Europe the effects of which was deprived to Colonial India The Nationalists had hoped to revive the domestic industries that were badly effected by polices implemented by British Raj which had made them uncompetitive to British made goods An estimate by Cambridge University historian Angus Maddison reveals that Indias share of the world income fell from 226 in 1700 comparable to Europes share of 233 to a low of 38 in 1952[39] It also created an

Estimates of the per capita income of India

(18571900) as per 194849 prices[32]

An aerial view of Calcutta

Port taken in 1945 Calcutta which was the economic hub

of British India saw increased industrial activity during

World War II



institutional environment that on paper guaranteed property rights among the colonizers encouraged free trade and created a single currency with fixed exchange rates standardized weights and measures capital markets It also established a well developed system of railways and telegraphs a civil service that aimed to be free from political interference a common-law and an adversarial legal system[40] Indias colonisation by the British coincided with major changes in the world economyindustrialisation and significant growth in production and trade However at the end of colonial rule India inherited an economy that was one of the poorest in the developing world[41] with industrial development stalled agriculture unable to feed a rapidly growing population India had one of the worlds lowest life expectancies and low rates for literacy

The impact of the British rule on Indias economy is a controversial topic Leaders of the Indian independence movement and left-nationalist economic historians have blamed colonial rule for the dismal state of Indias economy in its aftermath and that financial strength required for Industrial development in Europe was derived from the wealth taken from Colonies in Asia and Africa At the same time right-wing historians have countered that Indias low economic performance was due to various sectors being in a state of growth and decline due to changes brought in by colonialism and a world that was moving towards industrialization and economic integration[42]

Independence to 1991

Indian economic policy after independence was influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature) and by those leaders exposure to Fabian socialism Policy tended towards protectionism with a strong emphasis on import substitution industrialization state intervention in labor and financial markets a large public sector business regulation and central planning[43] Five-Year Plans of India resembled central planning in the Soviet Union Steel mining machine tools water telecommunications insurance and electrical plants among other industries were effectively nationalized in the mid-1950s[44] Elaborate licences regulations and the accompanying red tape commonly referred to as Licence Raj were required to set up business in India between 1947 and 1990[45]

Jawaharlal Nehru the first prime minister along with the statistician Prasanta Chandra Mahalanobis carried on by Indira Gandhi formulated and oversaw economic policy They expected favorable outcomes from this strategy because it involved both public and private sectors and was based on direct and indirect state intervention rather than the more extreme Soviet-style central command system[46] The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidizing manual low-skill cottage industries was criticized by economist Milton Friedman who thought it would waste capital and labour and retard the development of small manufacturers[47]

Indias low average growth rate from 194780 was derisively referred to as the Hindu rate of growth because of the unfavourable comparison with growth rates in other Asian countries especially the East Asian Tigers[40]

The Rockefeller Foundations research in high-yielding varieties of seeds their introduction after 1965 and the increased use of fertilizers and irrigation are known collectively as the Green Revolution in

Compare India (orange) with South Korea (yellow) Both started from about the same income level in 1950 The

graph shows GDP per capita of South Asian economies and

South Korea as a percent of the American GDP per capita



India which provided the increase in production needed to make India self-sufficient in food grains thus improving agriculture in India Famine in India once accepted as inevitable has not returned since the end of colonialism

After 1991

Main articles Economic liberalization in India and Economic development in India

In the late 80s the government led by Rajiv Gandhi eased restrictions on capacity expansion for incumbents removed price controls and reduced corporate taxes While this increased the rate of growth it also led to high fiscal deficits and a worsening current account The collapse of the Soviet Union which was Indias major trading partner and the first Gulf War which caused a spike in oil prices caused a major balance-of-payments crisis for India which found itself facing the prospect of defaulting on its loans[49] India asked for a $18 billion bailout loan from IMF which in return demanded reforms[50]

In response Prime Minister Narasimha Rao along with his finance minister Manmohan Singh initiated the economic liberalisation of 1991 The reforms did away with the Licence Raj (investment industrial and import licensing) and ended many public monopolies allowing automatic approval of foreign direct investment in many sectors[51] Since then the overall direction of liberalisation has remained the same irrespective of the ruling party although no party has tried to take on powerful lobbies such as the trade unions and farmers or contentious issues such as reforming labour laws and reducing agricultural subsidies[52] Since 1990 India has emerged as one of the fastest-growing economies in the developing world during this period the economy has grown constantly but with a few major setbacks This has been accompanied by increases in life expectancy literacy rates and food security

While the credit rating of India was hit by its nuclear tests in 1998 it has been raised to investment level in 2007 by SampP and Moodys[53] In 2003 Goldman Sachs predicted that Indias GDP in current prices will overtake France and Italy by 2020 Germany UK and Russia by 2025 and Japan by 2035 By 2035 it was projected to be the third largest economy of the world behind US and China[54][55]

Sectors

Agriculture

Main articles Agriculture in India Forestry in India Animal husbandry in India and Fishing in India

India ranks second worldwide in farm output Agriculture and allied sectors like forestry logging and fishing accounted for 166 of the GDP in 2007 employed 60 of the total workforce[17] and despite a steady decline of its share in the GDP is still the largest economic sector and plays a significant role in the overall socio-economic

Major improvements in educational standards

across India has helped its economic rise Shown here is the Indian School of Business at Hyderabad ranked number 15 in global MBA rankings by the

Financial Times of London in 2009[48]



development of India Yields per unit area of all crops have grown since 1950 due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation technology application of modern agricultural practices and provision of agricultural credit and subsidies since Green revolution in India However international comparisons reveal that the average yield in India is generally 30 to 50 of the highest average yield in the world[58]

India is the largest producer in the world of milk cashew nuts coconuts tea ginger turmeric and black pepper[59] It also has the worlds largest cattle population (193 million)[60] It is the second largest producer of wheat rice sugar groundnut and inland fish[61] It is the third largest producer of tobacco[61] India accounts for 10 of the world fruit production with first rank in the production of bananas sapotas and mangoes[61]

The second largest producer and largest consumer of silk in the world is India with a majority of the 7000 crore production taking place in Karnataka State particularly in Mysore and the North Bangalore regions of Muddenahalli Kanivenarayanapura and Doddaballapura the upcoming sites of a 70 crore Silk City [62] [63]

Industry and services

See also Business process outsourcing in India and Retailing in India

Industry accounts for 276 of the GDP and employ 17 of the total workforce[17] However about one-third of the industrial labour force is engaged in simple household manufacturing only[70] In absolute terms India is 16th in the world in terms of nominal factory output[71] Indias small industry makes up 5 of carbon dioxide emissions in the world

Economic reforms brought foreign competition led to privatisation of certain public sector industries opened up sectors hitherto reserved for the public sector and led to an expansion in the production of fast-moving consumer goods[72] Post-liberalisation the Indian private sector which was usually run by oligopolies of old family firms and required political connections to prosper was faced with foreign competition including the threat of cheaper Chinese imports It has since handled the change by squeezing costs revamping management focusing on designing new products and relying on low labour costs and technology[73]

Textile manufacturing is the second largest source for employment after agriculture and accounts for 26 of manufacturing output[74] Tirupur has gained universal recognition as the leading source of hosiery knitted garments casual wear and sportswear[75] Dharavi slum in Mumbai has gained fame for leather products Tata Motors Nano attempts to be the worlds cheapest car[69]

Farmers work inside a rice field in Andhra Pradesh India is the second largest producer

of rice in the world after China[56] and Andhra Pradesh is the

2nd largest rice producing state in India and West Bengal

being the largest rice producing state in India[57]

Development center of OFSS in Bangalore India has Asias largest outsourcing industry

[64] and is the worlds second most favorable outsourcing destination after the United

States[65]

India has one of the worlds



India is fifteenth in services output It provides employment to 23 of work force and it is growing fast growth rate 75 in 19912000 up from 45 in 195180 It has the largest share in the GDP accounting for 55 in 2007 up from 15 in 1950[17]

Business services (information technology information technology enabled services business process outsourcing) are among the fastest growing sectors contributing to one third of the total output of services in 2000 The growth in the IT sector is attributed to increased specialization and an availability of a large pool of low cost but highly skilled educated and fluent English-speaking workers on the supply side matched on the demand side by an increased demand from foreign consumers interested in Indias service exports or those looking to outsource their operations The share of Indias IT industry to the countrys GDP increased from 48 in 2005-06 to 7 in 2008[76][77] In 2009 seven Indian firms were listed among the top 15 technology outsourcing companies in the world[78] In March 2009 annual revenues from outsourcing operations in India amounted to US$60 billion and this is expected to increase to US$225 billion by 2020[79]

Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana Organized retail such supermarkets accounts for just 4 of the market as of 2008[80] Regulations prevent most foreign investment in retailing Moreover over thirty regulations such as signboard licences and anti-hoarding measures may have to be complied before a store can open doors There are taxes for moving goods to states from states and even within states[80]

Tourism in India is relatively undeveloped but growing at double digits Some hospitals woo medical tourism[81]

Banking and finance

Main article Finance in India

See also Banking in India and Insurance in India

The Indian money market is classified into the organised sector (comprising private public and foreign owned commercial banks and cooperative banks together known as scheduled banks) and the unorganised sector (comprising individual or family owned indigenous bankers or money lenders and non-banking financial companies (NBFCs)) The unorganised sector and microcredit are still preferred over traditional banks in rural and sub-urban areas especially for non-productive purposes like ceremonies and short duration loans[83]

Prime Minister Indira Gandhi nationalised 14 banks in 1969 followed by six others in 1980 and made it mandatory for banks to provide 40 of their net credit to priority sectors like agriculture small-scale industry retail trade small businesses etc to ensure that the

fastest growing automobile industries[66][67] and is global

leader of auto industry[68] Shown here is Tata Motors

Nano worlds least expensive car in production[69]

Structure of the organised banking sector in India Number of banks are in



banks fulfill their social and developmental goals Since then the number of bank branches has increased from 10120 in 1969 to 98910 in 2003 and the population covered by a branch decreased from 63800 to 15000 during the same period The total deposits increased 326 times between 1971 to 1991

compared to 7 times between 1951 to 1971 Despite an increase of rural branches from 1860 or 22 of the total number of branches in 1969 to 32270 or 48 only 32270 out of 5 lakh (500000) villages are covered by a scheduled bank[84][85]

The public sector banks hold over 75 of total assets of the banking industry with the private and foreign banks holding 182 and 65 respectively[86] Since liberalisation the government has approved significant banking reforms While some of these relate to nationalised banks (like encouraging mergers reducing government interference and increasing profitability and competitiveness) other reforms have opened up the banking and insurance sectors to private and foreign players[17][87] Since liberalisation the government has approved significant banking reforms While some of these relate to nationalised banks (like encouraging mergers reducing government interference and increasing profitability and competitiveness) other reforms have opened up the banking and insurance sectors to private and foreign players[17][87]

More than half of personal savings are invested in physical assets such as land houses cattle and gold[88]

Natural resources

Main article Natural resources in India

See also Energy policy of India

Indias total cultivable area is 1269219 kmsup2 (5678 of total land area) which is decreasing due to constant pressure from an ever growing population and increased urbanisation

India has a total water surface area of 314400 kmsup2 and receives an average annual rainfall of 1100 mm Irrigation accounts for 92 of the water utilisation and comprised 380 kmsup2 in 1974 and is expected to rise to 1050 kmsup2 by 2025 with the balance accounted for by industrial and domestic consumers Indias inland water resources comprising rivers canals ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly 6 million people in the fisheries sector In 2008 India had the worlds third largest fishing industry[89]

Indias major mineral resources include coal iron manganese mica bauxite titanium chromite limestone and thorium

India meets most of its domestic energy demand through its 92 billion tonnes of coal reserves (about 10 of worlds coal reserves)[90] Indias oil reserves found in Bombay High off the coast of Maharashtra Gujarat Rajasthan and in eastern Assam meet 25 of the countrys domestic oil demand

brackets[82] Mumbai is the financial and commercial capital of India

Shown here is the World Trade Center of Mumbai

India has the worlds fifth largest wind power industry with an installed wind

power capacity of 9587 MW Shown here is a wind farm in Muppandal Tamil Nadu



[17][91] Indias total proven oil reserves stand at 11 billion barrels[92] of which Bombay High is believed to hold 61 billion barrels[93] and Mangala Area in Rajasthan an additional 36 billion barrels[94] Indias huge thorium reserves about 25 of worlds reserves is expected to fuel the countrys ambitious nuclear energy program in the long-run Indias dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years[95] However the Indo-US nuclear deal has paved the way for India to import uranium from other countries[96] India is also believed to be rich in certain renewable sources of energy with significant future potential such as solar wind and biofuels (jatropha sugarcane)

External trade and investment

Further information Globalisation in India

Global trade relations

Indias economy is mostly dependent on its large internal market with external trade accounting for just 20 of the countrys GDP[98] In 2008 India accounted for 145 of global merchandise trade and 28 of global commercial services export[99] Until the liberalization of 1991 India was largely and intentionally isolated from the world markets to protect its economy and to achieve self-reliance Foreign trade was subject to import tariffs export taxes and quantitative restrictions while foreign direct investment (FDI) was restricted by upper-limit equity participation restrictions on technology transfer export obligations and government approvals these approvals were needed for nearly 60 of new FDI in the industrial sector The restrictions ensured that FDI averaged only around US$200 million annually between 1985 and 1991 a large percentage of the capital flows consisted of foreign aid commercial borrowing and deposits of non-resident Indians[100] Indias exports were stagnant for the first 15 years after independence due to the predominance of tea jute and cotton manufactures demand for which was generally inelastic Imports in the same period consisted predominantly of machinery equipment and raw materials due to nascent industrialization

Since liberalization the value of Indias international trade has become more broad-based and has risen to Rs 63080109 crores in 200304 from Rs1250 crores in 195051 Indias major trading partners are China the US the UAE the UK Japan and the EU[101] The exports during April 2007 were $1231 billion up by 16 and import were $1768 billion with an increase of 1806 over the previous year[102] In 2006-07 major export commodities included engineering goods petroleum products chemicals and pharmaceuticals gems and jewellery textiles and garments agricultural products iron ore and other minerals Major import commodities included crude oil and related products machinery electronic goods gold and silver[103]

India is a founding-member of General Agreement on Tariffs and Trade (GATT) since 1947 and its successor the WTO While participating actively in its general council meetings India has been crucial in voicing the concerns of the developing world For instance India has continued its opposition to the inclusion of such matters as labour and environment issues and other non-tariff barriers into the WTO policies[104]

In March 2008 Indias annual imports and exports stood at

US$236 and US$1555 billion respectively[97] Shown here is the cargo of a container ship

being unloaded at the Jawaharlal Nehru Port Navi

Mumbai



Balance of payments

Since independence Indias balance of payments on its current account has been negative Since liberalisation in the 1990s (precipitated by a balance of payment crisis) Indias exports have been consistently rising covering 803 of its imports in 200203 up from 662 in 199091 Indias growing oil import bill is seen as the main driver behind the large current account deficit[105] In 2007-08 India imported 1201 million tonnes of crude oil more than 34th of the domestic demand at a cost of $6172 billion[106]

Although India is still a net importer since 199697 its overall balance of payments (ie including the capital account balance) has been positive largely on account of increased foreign direct investment and deposits from non-resident Indians until this time the overall balance was only occasionally positive on account of external assistance and commercial borrowings As a result Indias foreign currency reserves stood at $285 billion in 2008 which could be used in infrastructural development of the country if used effectively

Due to the global late-2000s recession both Indian exports and imports declined by 292 and 392 respectively in June 2009[107] The steep decline was because countries hit hardest by the global recession such as United States and members of the European Union account for more than 60 of Indian exports[108] However since the decline in imports was much sharper compared to the decline in exports Indias trade deficit reduced to $2525 billion[107]

Indias reliance on external assistance and commercial borrowings has decreased since 199192 and since 200203 it has gradually been repaying these debts Declining interest rates and reduced borrowings decreased Indias debt service ratio to 45 in 2007[109] In India External Commercial Borrowings (ECBs) are being permitted by the Government for providing an additional source of funds to Indian corporates The Ministry of Finance monitors and regulates these borrowings (ECBs) through ECB policy guidelines[110]

Foreign direct investment in India

As the fourth-largest economy in the world in PPP terms India is a preferred destination for foreign direct investments (FDI)[113] India has strengths in information technology and other significant areas such as auto components chemicals apparels pharmaceuticals and jewellery Despite a surge in foreign investments rigid FDI policies resulted in a significant hindrance However due to some positive economic reforms aimed at deregulating the economy and stimulating foreign investment India has positioned itself as one of the front-runners of the rapidly growing Asia Pacific Region[113] India has a large pool of skilled managerial and technical expertise The size of the middle-class population stands at 50 million and represents a growing consumer market[114]

Cumulative Current Account Balance 1980-2008 based on

the IMF data

Share of top five investing countries in FDI inflows (20002007)[111]

Rank Country Inflows (Million USD) Inflows ()

1 Mauritius 85178 4424[112]

2 United States 18040 9373 United Kingdom 15363 798

4 Netherlands 11177 581

5 Singapore 9742 506



Indias recently liberalized FDI policy (2005) allows up to a 100 FDI stake in ventures Industrial policy reforms have substantially reduced industrial licensing requirements removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI The upward moving growth curve of the real-estate sector owes some credit to a booming economy and liberalized FDI regime In March 2005 the government amended the rules to allow 100 per cent FDI in the construction business[115] This automatic route has been permitted in townships housing built-up infrastructure and construction development projects including housing commercial premises hotels resorts hospitals educational institutions recreational facilities and city- and regional-level infrastructure

A number of changes were approved on the FDI policy to remove the caps in most sectors Fields which require relaxation in FDI restrictions include civil aviation construction development industrial parks petroleum and natural gas commodity exchanges credit-information services and mining But this still leaves an unfinished agenda of permitting greater foreign investment in politically sensitive areas such as insurance and retailing FDI inflows into India reached a record $195 billion in fiscal year 2006-07 (April-March) according to the governments Secretariat for Industrial Assistance This was more than double the total of US$78bn in the previous fiscal year The FDI inflow for 2007-08 has been reported as $24 billion[116] and for 2008-09 it is expected to be above $35 billion[117] A critical factor in determining Indias continued economic growth and realizing the potential to be an economic superpower is going to depend on how the government can create incentives for FDI flow across a large number of sectors in India[118]

Currency

Main articles Indian rupee and Reserve Bank of India

The Indian rupee is the only legal tender accepted in India The exchange rate as of September 1 2009 is 490003 rupees to the US dollar[119] 6665 to a Euro and 7760 to a UK pound The Indian rupee is accepted as legal tender in the neighboring Nepal and Bhutan both of which peg their currency to that of the Indian rupee The rupee is divided into 100 paise The highest-denomination banknote is the 1000 rupee note the lowest-denomination coin in circulation is the 25 paise coin (it earlier had 1 2 5 10 and 20 paise coins which have been discontinued by the Reserve Bank of India)[120] There has been a recent fall in the value of the Rupee as a result of the global financial crisis of 2008 as foreign institutional investors sold $14 billion worth of Indian stocks in 2008 and invested in US treasury bonds

The RBI the countrys central bank was established on April 1 1935 It serves as the nations monetary authority regulator and supervisor of the financial system manager of exchange control and as an issuer of currency The RBI is governed by a central board headed by a governor who is appointed by the Central government of India

Income and consumption

Main article Income in India

The RBI headquarters in

Mumbai



As of 2005

857 of the population lives on less than $250 (PPP) a day down from 925 in 1981 This compares with 805 in Sub-Saharan Africa[121]

756 of the population lives on less than $2 a day (PPP) which is around 20 rupees or $05 a day in nominal terms It was down from 866 and compares with 730 in Sub-Saharan Africa[121][122][123][124][125]

243 of the population earned less than $1 (PPP around $025 in nominal terms) a day in 2005 down from 421 in 1981[121][126]

416 of its population is living below the new international poverty line of $125 (PPP) per day down from 598 in 1981[121] The World Bank further estimates that a third of the global poor now reside in India

Today more people can afford a bicycle than ever before Some 40 of Indian households owns a bicycle with ownership rates ranging from around 30 to 70 at state level[127] Housing is still very modest According to Times of India a majority of Indians have per capita space equivalent to or less than a 10 feet x 10 feet room for their living sleeping cooking washing and toilet needs and one in every three urban Indians lives in homes too cramped to exceed even the minimum requirements of a prison cell in the US[128] The average is 103 sq ft (96 m2) per person in rural areas and 117 sq ft (109 m2) per person in urban areas[128]

Around half of Indian children are malnourished The proportion of underweight children is nearly double that of Sub-Saharan Africa[25][129] However India has not had famines since the Green Revolution in the early 1970s While poverty in India has reduced significantly official figures estimate that 275[130] of Indians still lived below the national poverty line of $1 (PPP around 10 rupees in nominal terms) a day in 2004-2005[131] A 2007 report by the state-run National Commission for Enterprises in the Unorganised Sector (NCEUS) found that 65 of Indians or 750 million people lived on less than 20 rupees per day[132] with most working in informal labour sector with no job or social security living in abject poverty[133]

Since the early 1950s successive governments have implemented various schemes under planning to alleviate poverty that have met with partial success All these programmes have relied upon the strategies of the Food for work programme and National Rural Employment Programme of the 1980s which attempted to use the unemployed to generate productive assets and build rural infrastructure[134] In August 2005 the Indian parliament passed the Rural Employment Guarantee Bill the largest programme of this type in terms of cost and coverage which promises 100 days of minimum wage employment to every rural household in 200 of Indias 600 districts The question of whether economic reforms have reduced poverty or not has fuelled debates without generating any clear cut answers and has also put political pressure on further economic reforms especially those involving the downsizing of labour and cutting agricultural subsidies[135][136]

Percentage of population living under the poverty line of $1 (PPP) a day currently 35635 rupees a

month in rural areas (around $74 a month)



Employment

See also Indian labour laws

Agricultural and allied sectors accounted for about 60 of the total workforce in 2003 same as in 199394 While agriculture has faced stagnation in growth services have seen a steady growth Of the total workforce 8 is in the organised sector two-thirds of which are in the public sector The NSSO survey estimated that in 19992000 106 million nearly 10 of the population were unemployed and the overall unemployment rate was 73 with rural areas doing marginally better (72) than urban areas (77) Indias labor force is growing by 25 annually but employment only at 23 a year[137]

Official unemployment exceeds 9 Regulation and other obstacles have discouraged the emergence of formal businesses and jobs Almost 30 of workers are casual workers who work only when they are able to get jobs and remain unpaid for the rest of the time[137] Only 10 of the workforce is in regular employment[137] Indias labor regulations are heavy even by developing country standards and analysts have urged the government to abolish them[8][138]

Unemployment in India is characterized by chronic underemployment or disguised unemployment Government schemes that target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem by providing financial assistance for setting up businesses skill honing setting up public sector enterprises reservations in governments etc The decreased role of the public sector after liberalization has further underlined the need for focusing on better education and has also put political pressure on further reforms[134][139]

Child labor is a complex problem that is basically rooted in poverty The Indian government is implementing the worlds largest child labor elimination program with primary education targeted for ~250 million Numerous non-governmental and voluntary organizations are also involved Special investigation cells have been set up in states to enforce existing laws banning employment of children (under 14) in hazardous industries The allocation of the Government of India for the eradication of child labor was $10 million in 1995-96 and $16 million in 1996-97 The allocation for 2007 is $21 million[140]

In 2006 remittances from Indian migrants overseas made up $27 billion or about 3 of Indias GDP[141]

Economic trends

In the revised 2007 figures based on increased and sustaining growth more inflows into foreign direct investment Goldman Sachs predicts that from 2007 to 2020 Indias GDP per capita in US$ terms will quadruple and that the Indian economy will surpass the United States (in US$) by 2043[10] Inspite of the high growth rate the report stated that India would continue to remain a low-income country for decades to come but could be be a motor for the world economy if it fulfills its growth potential[10] Goldman Sachs has outlined 10 things that it needs to do in order to achieve its potential and grow 40 times by 2050 These are

Indias 300 million strong middle-class population is growing at an annual rate of 5[142] Shown here is a residential area in the



1 improve governance 2 raise educational achievement 3 increase quality and quantity of universities 4 control inflation 5 introduce a credible fiscal policy 6 liberalize financial markets 7 increase trade with neighbours 8 increase agricultural productivity 9 improve infrastructure and

10 improve environmental quality[143]

Issues

Agriculture

Main article Agriculture in India

Slow agricultural growth is a concern for policymakers as some two-thirds of Indias people depend on rural employment for a living Current agricultural practices are neither economically nor environmentally sustainable and Indias yields for many agricultural commodities are low Poorly maintained irrigation systems and almost universal lack of good extension services are among the factors responsible Farmers access to markets is hampered by poor roads rudimentary market infrastructure and excessive regulation

World Bank India Country Overview 2008[144]

The low productivity in India is a result of the following factors

According to India Priorities for Agriculture and Rural Development by World Bank Indias large agricultural subsidies are hampering productivity-enhancing investment Overregulation of agriculture has increased costs price risks and uncertainty Government interventions in labor land and credit markets are hurting the market Infrastructure and services are inadequate[145]

Illiteracy general socio-economic backwardness slow progress in implementing land reforms and inadequate or inefficient finance and marketing services for farm produce

The average size of land holdings is very small (less than 20000 msup2) and is subject to fragmentation due to land ceiling acts and in some cases family disputes Such small holdings are often over-manned resulting in disguised unemployment and low productivity of labour

Adoption of modern agricultural practices and use of technology is inadequate hampered by ignorance of such practices high costs and impracticality in the case of small land holdings

World Bank says that the allocation of water is inefficient unsustainable and inequitable The irrigation infrastructure is deteriorating[145] Irrigation facilities are inadequate as revealed by the fact that only 526 of the land was irrigated in 200304[146] which result in farmers still being dependent on rainfall specifically the Monsoon season A good monsoon results in a robust growth for the economy as a whole while a poor monsoon leads to a sluggish growth[147] Farm credit is regulated by NABARD which is the statutory apex agent for rural development in the

Mumbai metropolitan area

An Indian farmer



subcontinent

India has many farm insurance companies that insure wheat fruit rice and rubber farmers in the event of natural disasters or catastrophic crop failure under the supervision of the Ministry of Agriculture One notable company that provides all of these insurance policies is Agriculture Insurance Company of India and it alone insures almost 20 million farmers

Indias population is growing faster than its ability to produce rice and wheat[24] The most important structural reform for self-sufficiency is the ITC Limited plan to connect 20000 villages to the Internet by 2013[148] This will provide farmers with up to date crop prices for the first time which should minimise losses incurred from neighbouring producers selling early and in turn facilitate investment in rural areas

Corruption

Main article Corruption in India

India ranked 120th on the Ease of Doing Business Index 2008 behind countries such as China (83rd) Pakistan (86th) and Nigeria (108th)

Corruption has been one of the pervasive problems affecting India The economic reforms of 1991 reduced the red tape bureaucracy and the Licence Raj that had strangled private enterprise and was blamed for the corruption and inefficiencies Yet a 2005 study by Transparency International (TI) India found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get a job done in a public office[149]

The Right to Information Act (2005) and equivalent acts in the Indian states that require government officials to furnish information requested by citizens or face punitive action computerisation of services and various central and state government acts that established vigilance commissions have considerably reduced corruption or at least have opened up avenues to redress grievances[149] The 2007 report by Transparency International ranks India at 72nd place and states that significant improvements were made by India in reducing corruption[150][151]

Government

Main article Government of India

See also Taxation in India and Corruption in India

The current government has concluded that most spending fails to reach its intended recipients[152] Lant Pritchett calls Indias public sector one of the worlds top ten biggest problems of the order of AIDS and climate change[152] The Economists article about Indian civil service (2008) says that Indian central government employs around 3 million people and states another 7 million including vast armies of paper-shuffling peons[152] Million dollar bureaucracies can be run without a single computer

Overview of the index of

perception of corruption 2007



in the management[152]

At local level administration can be worse It is not unheard of that most state assembly seats are held by convicted criminals[153] One study found out that 25 of public sector teachers and 40 of public sector medical workers could not be found at the workplace Indias absence rates are one of the worst in the world[154][155][156][157]

The Reserve Bank of India has warned that Indias public-debt to GDP ratio is over 70[158] The government of India is highly indebted and its former investment-grade status has deteriorated near junk status[159] Indias current public-debt to GDP ratio is 582 (US has 608) [160][161]

Education

Main article Education in India

India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately two thirds of the population[162] However education is still far behind developing countries such as China Most children never attend secondary schools[162] An optimistic estimate is that only one in five job-seekers in India has ever had any sort of vocational training[163]

Infrastructure

See also Transport in India Indian Road Network Ports in India Electricity in India States of India by installed power capacity Water supply and sanitation in India and Communications in India

Development of infrastructure was completely in the hands of the public sector and was plagued by corruption bureaucratic inefficiencies urban-bias and an inability to scale investment[164] Indias low spending on power construction transportation telecommunications and real estate at $31 billion or 6 of GDP in 2002 had prevented India from sustaining higher growth rates This has prompted the government to partially open up infrastructure to the private sector allowing foreign investment[134][165][166] which has helped in a sustained growth rate of close to 9 for the past six quarters[167]

Some 600 million Indians have no mains electricity at all[168] While 80 of Indian villages have at least an electricity line just 44 of rural households have access to electricity[169] According to a sample of 97882 households in 2002 electricity was the main source of lighting for 53 of rural households compared to 36 in 1993[170] Some half of the electricity is stolen compared with 3 in China The stolen electricity amounts to 15 of GDP[169][171] Almost all of the electricity in India is produced by the public sector Power outages are common[168] Many buy their own power generators to ensure electricity supply As of 2005 the electricity production was at 6616 billion kWh with oil production standing at 785000 bblday In 2007 electricity demand exceeded supply by 15[168] Multi Commodity Exchange has tried to get a

The number of people employed in non-agricultural occupations in the public and private sectors Totals

are rounded Private sector data relates to non-agriculture establishments with 10 or more

employees[134]

Rapid increases in exports has

resulted in congestion on highways across India Shown

here is the Mumbai-Pune expressway in Maharashtra



permit to offer electricity future markets[172]

Indian Road Network is developing Trucking goods from Gurgaon to the port in Mumbai can take up to 10 days[173] India has the worlds second largest road network[174] Container traffic is growing at 15 a year[175] Some 60 of Indias container traffic is handled by the Jawaharlal Nehru Port Trust in Mumbai Internet use is rare there were only 21 million broadband lines in India in January 2007[176]

Most urban cities have good water supply water 24 hours a day while some smaller cities face water shortages in summer season A World Bank report says it is an institutional problem in water agencies or how the agency is embedded in the relationships between politics and the citizens who are the consumers[177]

Labour laws

Main article Indian labour laws

Indias labor regulations among the most restrictive and complex in the world have constrained the growth of the formal manufacturing sector where these laws have their widest application Better designed labor regulations can attract more labor- intensive investment and create jobs for Indias unemployed millions and those trapped in poor quality jobs Given the countrys momentum of growth the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade


Indias restrictive labor regulations hamper the large-scale creation of formal industrial jobs[8][163][178]

Economic disparities

Main article Economic disparities in India

Lagging states need to bring more jobs to their people by creating an attractive investment destination Reforming cumbersome regulatory procedures improving rural connectivity establishing law and order creating a stable platform for natural resource investment that balances business interests with social concerns and providing rural finance are important


One of the critical problems facing Indias economy is the sharp and growing regional variations among Indias different states and

territories in terms of per capita income poverty availability of infrastructure and socio-economic development[180] Seven low-income states - Bihar Chhattisgarh Jharkhand Madhya Pradesh Orissa Rajasthan and Uttar Pradesh - are home to more than half of Indias population[181]



Between 1999 and 2008 the annualized growth rates for Gujarat (88) Haryana (87) or Delhi (74) were much higher than for Bihar (51) Uttar Pradesh (44) or Madhya Pradesh (35)[182]

Poverty rates in rural Orissa (43) and rural Bihar (40) are some of the worst in the world[177] On the other hand rural Haryana (57) and rural Punjab (24) compare well with middle-income countries[177]

The five-year plans have attempted to reduce regional disparities by encouraging industrial development in the interior regions but industries still tend to concentrate around urban areas and port cities[183] After liberalization the more advanced states are better placed to benefit from them with infrastructure like well developed ports urbanisation and an educated and skilled workforce which attract manufacturing and service sectors The union and state governments of backward regions are trying to reduce the disparities by offering tax

holidays cheap land etc and focusing more on sectors like tourism which although being geographically and historically determined can become a source of growth and is faster to develop than other sectors[184][185]

Environment and health

Main articles Environment of India Water supply and sanitation in India and Healthcare in India

On Yale and Columbias Environmental Performance Index Indias score is 21100 on sanitation compared with 67100 for the region and 48100 for the country income group[186]

About 12 billion people in developing nations lack clean safe water because most household and industrial wastes are dumped directly into rivers and lakes without treatment This contributes to the rapid increase in waterborne diseases in humans[187] Out of Indias 3119 towns and cities just 209 have partial treatment facilities and only 8 have full wastewater treatment facilities (WHO 1992)[188] Indoor air pollution from burning wood coal and animal dung is widespread[189] 70 of rural households in India lack ventilation Particulate concentrations in houses are reported to range from 8300 to 15000 igravegm3 greatly exceeding the 75 igravegm3 maximum standard for indoor particulate matter in the United States[190]

See also

Economic development in India Below Poverty Line (India) Bilateral Investment Treaty Energy policy Indian Construction Industry

Slums next to high-rise commercial buildings in

Kaloor Kochi Hundreds of people mostly comprising

migrant labourers who come to the city seeking job

prospects reside in such shabby areas[179]

Calicut Medical College

Kerala



Indian states ranking by families owning house International investment position List of co-operative banks in India List of Indian companies

Notes

1 ^ [1] 2 ^ India manages to clock 67 growth in 2008-09 3 ^ [2] 4 ^ Poverty estimates for 2004-05 Planning commission Government of India March 2007 Accessed

August 25 2007 5 ^

[httpeconomictimesindiatimescomMr_Rupee_pulls_India_into_1_trillion_GDP_gangarticleshow1957520cms India twelfth wealthiest boss in 2005 World Bank] The Economic Times httpeconomictimesindiatimescomMr_Rupee_pulls_India_into_1_trillion_GDP_gangarticleshow1957520cms Retrieved 2006-07-08

6 ^ CIA The World Factbook Rank Order GDP (purchasing power parity) Ciagov 2009-03-05 httpswwwciagovlibrarypublicationsthe-world-factbookrankorder2001rankhtml Retrieved 2009-03-13

7 ^ Eugene M Makar (2007) An Americans Guide to Doing Business in India 8 ^ a b c d e f Economic survey of India 2007 Policy Brief (PDF) OECD

httpwwwoecdorgdataoecd175239452196pdf Retrieved 2009-06-21 9 ^ a b The India Report (PDF) Astaire Research httpwwwukibccomukindia2filesIndia60pdf

Retrieved 2009-06-21 10 ^ a b c d Indias Rising Growth Potential (PDF) Goldman Sachs 2007

httpwwwusindiafriendshipnetviewpoints1Indias_Rising_Growth_Potentialpdf Retrieved 2009-06-21 11 ^ India now second fastest growing economy 12 ^ USDA - India 13 ^ Marketing in the 21st Century New world marketing - By Bruce David Keillor 14 ^ 2009 MOSPI Official Press Release 15 ^ httpwwwrediffcommoney2009feb20bcrisis-india-fiscal-deficit-to-be-highesthtm Indias fiscal deficit

to be highest in the world Goldman 16 ^ httpwwwbusiness-standardcomindianewspmeac-for-including-expense-targets-in-fiscal-

discipline374074 PMEAC for including expense targets in fiscal discipline 17 ^ a b c d e f g CIA The World Factbook India CIA 2007-09-20

httpswwwciagovlibrarypublicationsthe-world-factbookgeosinhtmlEcon Retrieved 2007-10-02 18 ^ a b Country Profile India (PDF) Library of Congress - Federal Research Division December 2004

httplcweb2locgovfrdcsprofilesIndiapdf Retrieved 2007-06-24 19 ^ [3] 20 ^ [4] 21 ^ Inclusive Growth and Service delivery Building on Indias Success (PDF) World Bank 2006

httpsiteresourcesworldbankorgSOUTHASIAEXTResourcesDPR_FullReportpdf Retrieved 2007-04-28

22 ^ Inequality in India and China Is Globalization to Blame Yale Global 15 October 2007 httpyaleglobalyaleedudisplayarticleid=9819

23 ^ Data refer to the most recent year available during 1990-2005 Human and income poverty developing countries Population living below $2 a day () Human Development Report 200708 UNDP Retrieved February 3 2008

24 ^ a b The Food Chain In Fertile India Growth Outstrips Agriculture New York Times 22 June 2008 httpwwwnytimescom20080622business22indiafoodhtml_r=1

25 ^ a b Many rural Indians malnourished BBC httpnewsbbccouk2hisouth_asia7902136stm 26 ^ Corn amp Glasserman 1999 Prologue 27 ^ Donkin Robin A (August 2003) Between East and West The Moluccas and the Traffic in Spices Up to



the Arrival of Europeans Diane Publishing Company ISBN 0871692481 28 ^ Nehru Jawaharlal (1946) Discovery of India Penguin Books ISBN 0-14-303103-1 29 ^ Kumar Dharma (Ed) (1982) The Cambridge Economic History of India (Volume 2) c 1757 - c 1970

Penguin Books p 519 30 ^ Datt Ruddar amp Sundharam KPM (2005) 2 Indian Economy SChand pp 1516 ISBN 81-219-

0298-3 31 ^ Sankaran S (1994) 3 Indian Economy Problems Policies and Development Margham Publications

p 50 ISBN 32 ^ Kumar Dharma (Ed) 4 The Cambridge Economic History of India (Volume 2) p 422 33 ^ Datt Ruddar amp Sundharam KPM 2 Indian Economy p 16 34 ^ Economy of Mughal Empire Bombay Times (Times of India) 2004-08-17 35 ^ Kumar Dharma (Ed) 1 The Cambridge Economic History of India (Volume 2) pp 3235 36 ^ Ch20 Unuedu httpwwwunueduunupressunupbooks80815e80815E0khtm Retrieved 2009-03-13 37 ^ [5] 38 ^ [6] 39 ^ Of Oxford economics empire and freedom The Hindu October 2 2005

httpwwwhinducom20050710stories2005071002301000htm 40 ^ a b Williamson John and Zagha Roberto (2002) (PDF) From the Hindu Rate of Growth to the Hindu Rate

of Reform Working Paper No 144 Center for research on economic development and policy reform httpscidstanfordedupdfcredpr144pdf

41 ^ Roy Tirthankar (2000) 1 The Economic History of India Oxford University Press p 1 ISBN 0-19-565154-5


43 ^ Kelegama Saman and Parikh Kirit (2000) Political Economy of Growth and Reforms in South Asia Second Draft httpwwweldisorgstaticDOC12473htm

44 ^ Sam Staley (2006) The Rise and Fall of Indian Socialism Why India embraced economic reform httpwwwreasoncomnewsshow36682html

45 ^ Street Hawking Promise Jobs in Future The Times of India 2001-11-25 46 ^ Cameron John and Ndhlovu P Tidings (2001) (PDF) Cultural Influences on Economic Thought in India

Resistance to diffusion of neo-classical economics and the principles of Hinduism Archived from the original on 2006-08-23 httpwebarchiveorgweb20060823161225httpwwweconomicissuesorgarchivepdfs5v6p2PDF

47 ^ Milton Friedman on the NehruMahalanobis Plan httpwwwindiapolicyorgdebateNotesfried_opinionhtml Retrieved 2005-07-16

48 ^ MBA global Top 100 rankings - FT ftcom httprankingsftcombusinessschoolrankingsglobal-mba-rankings Retrieved 2009-03-04

49 ^ Ghosh Arunabha (2004-06-01) (PDF) Indias pathway trough economic crisis Global Economic Governance Programme GEG Working Paper 200406 httpwwwglobaleconomicgovernanceorgdocsGhosh20-20Indiapdf Retrieved 2007-10-02

50 ^ Economic reforms in India Task force report (PDF) 2006 httpharrisschooluchicagoeduNewspress-releasesIPP20Economic20Reform20in20Indiapdf Retrieved 2009-06-21

51 ^ Panagariya Arvind (2004) India in the 1980s and 1990s A Triumph of Reforms httpideasrepecorgpwpawuwpit0403005html

52 ^ That old Gandhi magic The Economist November 27 1997 httpwwweconomistcomworldasiadisplaystorycfmstory_id=107076

53 ^ Moodys upgrade Uplifts the mood but raises questions Business Line httpwwwthehindubusinesslinecom20030210stories2003021000040900htm Retrieved 2009-03-13

54 ^ Wilson Dominic Purushothaman Roopa (2003-10-01) DreamingWith BRICs The Path to 2050 (PDF) Global economics paper No 99 Goldman Sachs httpwww2goldmansachscominsightresearchreports99pdf Retrieved 2007-10-04

55 ^ Grammaticas Damian Indian economy to overtake UK BBC News httpnewsbbccouk1hiworldsouth_asia6294409stm Retrieved 2007-01-26

56 ^ Taipei Times - archives 57 ^ httpwwwirriorgsciencericestatdatamay2008WRS2008-Table07pdf 58 ^ Datt Ruddar amp Sundharam KPM 28 Indian Economy pp 485491



59 ^Agriculture sector Indo British Partnership network Retrieved on December 2007 60 ^ Lester R Brown Worlds Rangelands Deteriorating Under Mounting Pressure Earth Policy Institute

Retrieved on- February 2008 61 ^ a b c Indian agriculture Agribusiness Information Centre Retrieved on- February 2008 62 ^ httpwwwdeccanheraldcomcontent31009silk-city-come-up-nearhtml 63 ^ httpsifycomfinancefullstoryphpa=jhpsgPhcaaaamptitle=Silk_export_likely_to_be_Rs_7

2C000_cr_by_20123A_Minister 64 ^ Asian countries lead list of top outsourcing destinations 65 ^ Outsourcing Statistics - 2009 Black Book of Outsourcing 66 ^ Tyres amp Accessories Reifenpressede httpwwwreifenpressedeCDML007engastdetailphp

tk=ampt=untampRecID=7767ampwert1=19843ampwert2= Retrieved 2008-11-03 67 ^ The small car dream-merchants- Tatas Peoples Car-Specials-The Economic Times

Economictimesindiatimescom httpeconomictimesindiatimescomarticleshow2682810cms Retrieved 2008-11-03

68 ^ Quamnetcom stock news Quamnetcom httpwwwquamnetcomnewscolumnistcontentactionarticleId=924056 Retrieved 2008-11-03

69 ^ a b The Next Peoples Car forbescom httpwwwforbescomhomefree_forbes20070416070html Retrieved 2008-01-21

70 ^ Census Reference Tables B-Series Economic Tables Censusindiagovin httpwwwcensusindiagovinCensus_Data_2001Census_data_finderB_SeriesIndustrial_Category_of_workerhtm Retrieved 2008-11-03

71 ^ Please see the sources for the List of countries by GDP sector composition The data is compiled through CIA World Factbook figures

72 ^ Economic structure The Economist October 6 2003 httpwwweconomistcomcountriesIndiaprofilecfmfolder=Profile2DEconomic20Structure

73 ^ Indian manufacturers learn to compete The Economist February 12 2004 httpwwweconomistcomdisplaystorycfmstory_id=S272983C2FPQ3B2121P2140A

74 ^ Industry Overview Indian Overview httpwwwcitiindiacomindian_overviewasppgname=Overview

75 ^ Helping Tirupur emerge as a leader in knitwear exports in India Tiruppur The Hindu httpwwwthehinducom20070611stories2007061110090500htm

76 ^ Share of IT ITeS in Indias GDP to go up to 7 by 2008 domain-bcom 20 December 2006 httpwwwdomain-bcominfotechitnews200620061220_per_centhtml

77 ^ The Coming Death Of Indian Outsourcing Forbes 2008-02-29 httpwwwforbescomhomeenterprisetech20080229mitra-india-outsourcing-tech-enter-cx_sm_0229outsourcehtml

78 ^ Outlook for Outsourcing - WSJ 79 ^ Indias Revenue From Outsourcing Could Be $225B in 2020 80 ^ a b Retailing in India Unshackling the chain stores Economist 2008

httpwwweconomistcomdisplayStorycfmstory_id=11465586 81 ^ Mudur Ganapati (June 2004) Hospitals in India woo foreign patients British Medical Journal 328

1338 doi101136bmj32874521338 PMID 15178611 82 ^ Old private banks are private banks existing prior to opening up of the banking sector 83 ^ Datt Ruddar amp Sundharam KPM 50 Indian Economy pp 847850 84 ^ Ghosh Jayati Bank Nationalisation The Record Macroscan

httpwwwmacroscancomcurjul05cur210705Bank_Nationalisationhtm Retrieved 2005-08-05 85 ^ Datt Ruddar amp Sundharam KPM 50 Indian Economy pp 850851 86 ^ India growth story is attracting talent from govt establishments HT media Retrieved on- December 2007 87 ^ a b Datt Ruddar amp Sundharam KPM 50 Indian Economy pp 865867 88 ^ Diana Farrell and Susan Lund Reforming Indias Financial System (PDF)

httpunpan1unorgintradocgroupspublicdocumentsAPCITYUNPAN028982pdf Retrieved 2009-06-21

89 ^ The Hindu Kerala Kochi News Diversify fishing methods says Pawar Hinducom httpwwwhinducom20080105stories2008010552830300htm Retrieved 2008-11-03

90 ^ httpwwwnationmastercomgraphene_coa_pro_res_tot-energy-coal-proved-reserves-total 91 ^ Datt Mihir Bhojani amp Vivek Sundharam KPM 7 Indian Economy pp 909798100



92 ^ Indias energy security challenge 93 ^ Indian Oil and Natural Gas 94 ^ Petronas takes key stake in Cairn before pound36bn Indian float 95 ^ Uranium shortage holding back Indias nuclear power drive 96 ^ Bush signs India-US nuclear deal into law 97 ^ Indias March Exports Grow 266 98 ^ Resilient India - By Shashi Tharoor 99 ^ India says export growth will continue to slow

100 ^ Srinivasan TN (2002) (PDF) Economic Reforms and Global Integration January 17 2002 httpwwweconyaleedu7Esrinivasec_reformspdf Retrieved 2009-06-21

101 ^ Datt Ruddar amp Sundharam KPM 46 Indian Economy pp 76777276 102 ^ INDIAS FOREIGN TRADE APRIL-DECEMBER 2007 103 ^ Ministry of Commerce Government of India - Imports and Exports Databank 104 ^ India amp the World Trade Organization httpwwwindianembassyorgpolicyWTOoverviewhtml

Retrieved 2005-07-09 105 ^ Oil prices to dent Indias balance sheet Goldman Sachs 106 ^ Research and Markets The Total Crude Oil Import in India 107 ^ a b Indias exports continue to fall 108 ^ India Cuts Export Aim Seeks Solace in New Markets 109 ^ India`s external debt rises to US$1905bn 110 ^ External Commercial Borrowings 111 ^ FDI in India Statistics httpdippnicinfdi_statisticsindia_fdi_indexhtm Retrieved 2008-02-12 112 ^ Much of Indias FDI is routed through Mauritius because both countries have an agreement to avoid

double taxation India to sign free trade agreement with Mauritius httpwwwbilateralsorgarticlephp3id_article=1521 Retrieved 2005-08-15

113 ^ a b India 2nd best country for biz investment Survey The Financial Express Financialexpresscom httpwwwfinancialexpresscomnewsIndia-2nd-best-country-for-biz-investment-Survey343344 Retrieved 2008-11-03

114 ^ Next Big Spenders Indias Middle Class 115 ^ The Hinduonline 116 ^ Hindustan Times India attracts $ 25 billion FDI in 2007-08 117 ^ Economic Times FDI inflows to exceed $35 billion target in 2008-09 118 ^ [Indian Economic Superpower Fiction or Future edited by Jayashankar M Swaminathan World

Scientific Publishing 2008] 119 ^ US Dollar to Indian Rupee Exchange Rate Yahoo Finance India Infinanceyahoocom

httpfinanceyahoocomcurrency-converteramt=1ampfrom=USDampto=INRampsubmit=Convertfrom=USDto=INRamt=1 Retrieved 2009-03-07

120 ^ RBI RBI httpwwwrbiorgincurrencycoinshtml Retrieved 2009-03-13 121 ^ a b c d The developing world is poorer than we thought but no less successful in the fight against poverty

World Bank 2008 httpeconworldbankorgexternaldefaultmainpagePK=64165259amppiPK=64165421amptheSitePK=469372ampmenuPK=64166093ampentityID=000158349_20080826113239

122 ^ One-third of worlds poor in India Survey-India-The Times of India Timesofindiaindiatimescom httptimesofindiaindiatimescomIndiaOne-third_of_worlds_poor_in_Indiaarticleshow3409374cms Retrieved 2008-11-03

123 ^ The Hindu National World Banks new poverty norms find larger number of poor in India Thehinducom httpwwwthehinducom20080828stories2008082856061300htm Retrieved 2008-11-03

124 ^ Define poverty anew- Opinion-The Economic Times Economictimesindiatimescom httpeconomictimesindiatimescomEditorialsDefine_poverty_anewarticleshow3423435cms Retrieved 2008-11-03

125 ^ Steve Schifferes (27 August 2008) BBC NEWS | Business | World poverty more widespread Newsbbccouk httpnewsbbccouk2hibusiness7583719stm Retrieved 2008-11-03

126 ^ India has fewer poor people World Bank Business Standard httpwwwbusiness-standardcomindiastorypagephpautono=332669

127 ^ Bicycle Ownership in India httpwwwbike-eucomnews1573bicycle-ownership-in-indiahtml



128 ^ a b 33 of Indians live in less space than US prisoners Times of India 2008 httptimesofindiaindiatimescom33_of_Indians_live_in_less_space_than_US_prisonersarticleshow3753189cms

129 ^ Malnutrition Among Indian Children Worse Than in Sub-Saharan Africa Medindia httpwwwmedindianetnewsMalnutrition-Among-Indian-Children-Worse-Than-in-Sub-Saharan-Africa-30955-1htm

130 ^ This figure is extremely sensitive to the surveying methodology used The Uniform Recall Period (URP) gives 275 The Mixed Recall Period (MRP) gives a figure of 218

131 ^ Planning commission of India Poverty estimates for 2004-2005 132 ^ NCEUS Report (PDF) httpnceusgovinCondition_of_workers_sep_2007pdf Retrieved 2009-06-21 133 ^ Nearly 80 of India Lives On Half Dollar A Day Reuters August 10 2007

httpwwwreuterscomarticlelatestCrisisidUSDEL218894 Retrieved 2007-08-15 134 ^ a b c d Economic Survey 20042005 httpindiabudgetnicines2004-05esmainhtm Retrieved 2006-07-

15 135 ^ Datt Ruddar amp Sundharam KPM 22 Indian Economy pp 367369370 136 ^ Jawahar gram samriddhi yojana httpruralnicinjgsyghtm Retrieved 2005-07-09 137 ^ a b c Growing Unemployment Problem in India (PDF)

httpnewsgroupsderkeilercompdfArchiveSocsocculturepakistan2008-09msg00054pdf Retrieved 2009-06-21

138 ^ Why India needs labour law reform BBC 139 ^ Datt Ruddar amp Sundharam KPM 24 Indian Economy pp 403405 140 ^ Embassy of India Child Labor and India Embassy of India Indianembassyorg

httpwwwindianembassyorgpolicyChild_Laborchildlaborhtmintro Retrieved 2009-03-13 141 ^ Remittances from Indians abroad push India to the top 2007

httpwwwnrirealtynewscomstoriesoct07remittances-from-indians-abroad-push-india-to-topphp 142 ^ Marketing in the 21st Century New world marketing - By Bruce David Keillor 143 ^ The top 10 challenges for India Rediff httpspecialsrediffcommoney2008jun17slid01htm 144 ^ a b c India Country Overview 2008 World Bank 2008

httpwwwworldbankorginWBSITEEXTERNALCOUNTRIESSOUTHASIAEXTINDIAEXTN0contentMDK20195738~menuPK295591~pagePK141137~piPK141127~theSitePK29558400html

145 ^ a b India Priorities for Agriculture and Rural Development World Bank httpwebworldbankorgWBSITEEXTERNALCOUNTRIESSOUTHASIAEXTEXTSAREGTOPAGRI0contentMDK20273764~menuPK548214~pagePK34004173~piPK34003707~theSitePK45276600html

146 ^ Multiple authors (2004) Agricultural Statistics at a Glance 2004 httpdacnetnicineands46(a)All20lndia20Area20Production20and20Yield20of20Ricexls

147 ^ Sankaran S 28 Indian Economy Problems Policies and Development pp 492493 148 ^ India on the Move India Reborn 2009-02-17 No 2 season 1 149 ^ a b Transparency International India India Corruption Study 2005 (PDF) Centre for Media Studies

httpwwwcmsindiaorgcmseventscorruptionpdf Retrieved 2008-03-14 150 ^ 2007 Corruption Perceptions Index reinforces link between poverty and corruption Transparency

International httpwwwtransparencyorgpolicy_researchsurveys_indicescpi2007 Retrieved 2008-03-15

151 ^ CPI Table Transparency International httpwwwtransparencyorgnews_roomin_focus2006cpi_2006__1cpi_table Retrieved 2008-03-15

152 ^ a b c d Indias civil service Battling the babu raj Mar 6th 2008 The Economist 153 ^ The criminalisation of Indian democracy (May 2 2007) Jo Johnson Financial Times

httpwwwftcomcmss21d0f5f8-f8c1-11db-a940-000b5df10621html Retrieved 2007-05-12 154 ^ Teachers and Medical Worker Incentives in India by Karthik Muralidharan (PDF)

httpeconucsdedu~kamuraliteachers20and20medical20worker20incentives20in20indiapdf Retrieved 2009-06-21

155 ^ Combating Indias truant teachers BBC 156 ^ Private Schools in Rural India Some Facts (presentation) Public and Private Schools in Rural India (a

paper) Karthik Muralidharan Michael Kremer 157 ^ Teacher absence in India A snapshot (PDF)



httpglobetrotterberkeleyedumacarthurinequalitypapersKremerTeacherAbsenceinIndiapdf Retrieved 2009-06-21

158 ^ India is vulnerable to high public debt - RBI Reuters 159 ^ Indian debt faces risk of a cut to junk status International Herald Tribune 2008

httpwwwihtcomarticles20080720businessinvest21php 160 ^ httpswwwciagovlibrarypublicationsthe-world-factbookprintinhtml 161 ^ httpswwwciagovlibrarypublicationsthe-world-factbookprintushtml 162 ^ a b Education in India World Bank

httpwwwworldbankorginWBSITEEXTERNALCOUNTRIESSOUTHASIAEXTINDIAEXTN0contentMDK21493265~pagePK141137~piPK141127~theSitePK29558400html

163 ^ a b A special report on India An elephant not a tiger Economist 11 December 2008 httpwwweconomistcomspecialreportsdisplayStorycfmstory_id=12749735

164 ^ Sankaran S (1994) Indian Economy Problems Policies and Development Margham Publications ISBN 165 ^ Infrastructure the missing link httpeditioncnncom2004WORLDasiapcf0903indiaeyeinfra

Retrieved 2005-08-14 166 ^ Infrastructure in India Requirements and favorable climate for foreign investment

httpwwwasiatradehubcomindiaintroasp Retrieved 2005-08-14 167 ^ Indias Economic Growth Unexpectedly Quickens to 92 Bloomberg

httpbloombergcomappsnewspid=20601087ampsid=ayAK98NMbmCAamprefer=home 168 ^ a b c A special report on India Creaking groaning Infrastructure is Indias biggest handicap The

Economist 11 December 2008 httpwwweconomistcomspecialreportsdisplaystorycfmstory_id=12749787

169 ^ a b Reforming the Power Sector Controlling Electricity Theft and Improving Revenue (PDF) The World Bank httprruworldbankorgdocumentspublicpolicyjournal272bhatia_Gulatipdf Retrieved 2009-06-21

170 ^ Housing condition in India Household amenities and other characteristics (July September 2002) Government of India httpwwwmospinicinnss_58round_press_note_6june05htm

171 ^ India struggles with power theft BBC httpnewsbbccouk2hibusiness4802248stm 172 ^ MCX move to launch electricity future faces legal hurdle The Financial Express

httpwwwfinancialexpresscomnewsmcx-move-to-launch-electricity-future-faces-legal-hurdle401592 173 ^ The Trouble With India Crumbling roads jammed airports and power blackouts could hobble growth

BusinessWeek 19 March 2007 httpwwwbusinessweekcommagazinecontent07_12b4026001htm 174 ^ Infrastructure Rankings httpswwwciagovlibrarypublicationsthe-world-

factbookrankorder2085rankhtml 175 ^ Ageing Indian infrastructure causes congestion The Age 2005

httpwwwtheagecomaunewsbusinessageing-indian-infrastructure-causes-congestion200509211126982123165html

176 ^ httpwwwtraigovintraiuploadPressReleases419pr15jan07no6pdf 177 ^ a b c Development Policy Review World Bank

httpwebworldbankorgWBSITEEXTERNALCOUNTRIESSOUTHASIAEXT0contentMDK20980493~pagePK146736~piPK146830~theSitePK22354700html

178 ^ Why India needs labour law reform BBC httpnewsbbccouk2hisouth_asia4103554stm 179 ^ BBC News Online | Business | Winners and losers as India booms Newsbbccouk

httpnewsbbccouknolpdaukfs_newshinewsid_66770006677645stm Retrieved 2008-11-03 180 ^ Datt Ruddar amp Sundharam KPM 27 Indian Economy pp 471472 181 ^ Country Strategy for India (CAS) 2009-2012 (PDF) World Bank

httpwwwukibccomukindia2filesIndia60pdf Retrieved 2009-06-21 182 ^ A special report on India Ruled by Lakshmi The Economist 11 December 2008

httpwwweconomistcomsurveysdisplaystorycfmstory_id=12749719ampfsrc=rss 183 ^ Bharadwaj Krishna (1991) Regional differentiation in India in Sathyamurthy TV (ed) Industry amp

agriculture in India since independence Oxford University Press pp 189199 ISBN 0-19-564394-1 184 ^ Sachs D Jeffrey Bajpai Nirupam and Ramiah Ananthi (2002) (PDF) Understanding Regional

Economic Growth in India Working paper 88 Archived from the original on 2007-07-01 httpwebarchiveorgweb20070701042205httpwww2cidharvardeducidwp088pdf

185 ^ Kurian NJ Regional disparities in india httpplanningcommissionnicinreportssereportservision2025regdsprtydoc Retrieved 2005-08-06

186 ^ SPECIAL REPORT Putrid Rivers Of Sludge Delhis bureaucrats bicker over cholera and the role of city



drains and state sewers NewsWeek on July 7-14 2008 issue 187 ^ Gleick PH 1993 Water in Crisis New York Oxford University Press 188 ^ Russell Hopfenberg and David Pimentel HUMAN POPULATION NUMBERS AS A FUNCTION OF

FOOD SUPPLY oilcrashcom Retrieved on- February 2008 189 ^ Indoor air pollution is the biggest killer The Times of India 190 ^ Christiani DC 1993 Urban and trans-boundary air pollution Human health consequences Pages 13-30 in

Chivian E McCally M Hu H Haines A eds Critical Condition Human Health and the Environment Cambridge (MA) MIT Press

References

Books

Nehru Jawaharlal (1946) Discovery of India Penguin Books ISBN 0-14-303103-1 Kumar Dharma (Ed) (1982) The Cambridge Economic History of India (Volume 2) c 1757 - c

1970 Penguin Books Sankaran S (1994) Indian Economy Problems Policies and Development Margham

Publications ISBN Roy Tirthankar (2000) The Economic History of India Oxford University Press ISBN 0-19-

565154-5 Bharadwaj Krishna (1991) Regional differentiation in India in Sathyamurthy TV (ed)

Industry amp agriculture in India since independence Oxford University Press pp 189199 ISBN 0-19-564394-1

Alamgir Jalal (2008) Indias Open-Economy Policy Routledge ISBN 978-0-415-77684-4

Papers

Williamson John and Zagha Roberto (2002) (PDF) From the Hindu Rate of Growth to the Hindu Rate of Reform Working Paper No 144 Center for research on economic development and policy reform httpscidstanfordedupdfcredpr144pdf

Centre for Media Studies (2005) (PDF) India Corruption Study 2005 To Improve Governance Volume I Key Highlights Transparency International India httpwwwprajanetorgnewsroominternaltiiICS2k5_Vol1pdf Retrieved 2009-06-21

Kelegama Saman and Parikh Kirit (2000) Political Economy of Growth and Reforms in South Asia Second Draft httpwwweldisorgstaticDOC12473htm

Panagariya Arvind (2004) India in the 1980s and 1990s A Triumph of Reforms httpideasrepecorgpwpawuwpit0403005html

Rodrik Dani and Subramanian Arvind (2004) (PDF) From Hindu Growth To Productivity Surge The Mystery Of The Indian Growth Transition httpksghomeharvardedu~drodrikIndiapaperdraftMarch2pdf Retrieved 2009-06-21

Bernardi Luigi and Fraschini Angela (2005) Tax System And Tax Reforms In India Working paper n 51 httpideasrepecorgpucaucapdv45html

Gordon Jim and Gupta Poonam (2003) (PDF) Understanding Indias Services Revolution November 12 2003 httpwwwimforgexternalnpapdseminars2003newdelhigordonpdf Retrieved 2009-06-21

Ghosh Jayati Bank Nationalisation The Record Macroscan httpwwwmacroscancomcurjul05cur210705Bank_Nationalisationhtm Retrieved 2005-08-05

Srinivasan TN (2002) (PDF) Economic Reforms and Global Integration January 17 2002 httpwwweconyaleedu7Esrinivasec_reformspdf Retrieved 2009-06-21

Sachs D Jeffrey Bajpai Nirupam and Ramiah Ananthi (2002) (PDF) Understanding Regional




Government publications

Jawahar gram samriddhi yojana httpruralnicinjgsyghtm Retrieved 2005-07-09 India amp the World Trade Organization

httpwwwindianembassyorgpolicyWTOoverviewhtml Retrieved 2005-07-09 Economic Survey 20042005 httpindiabudgetnicines2004-05esmainhtm Retrieved 2005-

07-15 History of the Planning Commission

httpplanningcommissionnicinaboutushistoryabouthtm Retrieved 2005-07-22 Multiple authors (2004) (PDF) Agricultural Statistics at a Glance 2004

httpagricoopnicinstatatglance2004AtGlancepdf Retrieved 2009-06-21 Kurian NJ Regional disparities in india

httpplanningcommissionnicinreportssereportservision2025regdsprtydoc Retrieved 2005-08-06

News

That old Gandhi magic The Economist November 27 1997 httpeconomistcomdisplaystorycfmstory_id=S2629H2C2BPQ27250A

Indif_real_GDP_per_capitaa says 21 of 29 states to launch new tax Daily Times March 25 2005 httpwwwdailytimescompkdefaultasppage=story_25-3-2005_pg5_13

Economic structure The Economist October 6 2003 httpwwweconomistcomcountriesIndiaprofilecfmfolder=Profile2DEconomic20Structure

Indian manufacturers learn to compete The Economist February 12 2004 httpwwweconomistcomdisplaystorycfmstory_id=S272983C2FPQ3B2121P2140A

Indias next 50 years The Economist August 14 1997 httpeconomistcomdisplaystorycfmstory_id=S2629H82FRQ3B220A

The plot thickens The Economist May 31 2001 httpeconomistcomdisplaystorycfmstory_id=S26288202BRQ3F240A

The voters big surprise The Economist May 13 2004 httpeconomistcomdisplaystorycfmstory_id=S2729842BRQ32B2140202C0A

Regional stock exchanges Bulldozed by the Big Two httpwwwthehindubusinesslinecombusinessline20010720stories042062crhtm Retrieved 2005-08-10

Infrastructure the missing link httpeditioncnncom2004WORLDasiapcf0903indiaeyeinfra Retrieved 2005-08-14

Of Oxford economics empire and freedom The Hindu October 2 2005 httpwwwhinducom20050710stories2005071002301000htm

Articles

[[[MediaEconomic Development of Indiapdf|Economic Development of Indiapdf]] Economic Development of India] (PDF) Economic Development of Indiapdf Retrieved MAy 17 2007

Milton Friedman on the NehruMahalanobis Plan httpwwwindiapolicyorgdebateNotesfried_opinionhtml Retrieved 2005-07-16

Forex reserves up by $88 mn httpwwwbusiness-standardcombsonlinestorypagephp



bKeyFlag=BOampautono=9047 Retrieved 2005-08-10 CIA The World Factbook httpswwwciagovlibrarypublicationsthe-world-

factbookgeosinhtml Retrieved 2005-08-02 Infrastructure in India Requirements and favorable climate for foreign investment

httpwwwasiatradehubcomindiaintroasp Retrieved 2005-08-14

External links

Government of India websites

Finance Ministry of India India in Business- Official website for Investment and Trade in India Reserve Bank of Indias database on the Indian economy

Publications and statistics

World Bank - India Country Overview Ernst amp Young 2006 report on doing Business in India CIA - The World Factbook India India Economic Scan Will India Become a Superpower Here are 12 Hints

Retrieved from httpenwikipediaorgwikiEconomy_of_India Categories South Asia Free Trade Agreement | Economy of India | World Trade Organization member economies

This page was last modified on 24 October 2009 at 0907 Text is available under the Creative Commons Attribution-ShareAlike License additional terms

may apply See Terms of Use for details Wikipediareg is a registered trademark of the Wikimedia Foundation Inc a non-profit organization



Indias per capita income (nominal) is $1016 ranked 142th in the world[19] while its per capita (PPP) of US$2762 is ranked 129th[20][21] Previously a closed economy Indias trade has grown fast[8] India currently accounts for 15 of World trade as of 2007 according to the WTO According to the World Trade Statistics of the WTO in 2006 Indias total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and Indias services trade inclusive of export and import was $143 billion Thus Indias global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion up by a record 72 from a level of $253 billion in 2004 Indias trade has reached a still relatively moderate share 24 of GDP in 2006 up from 6 in 1985[8]

Despite robust economic growth India continues to face many major problems The recent economic development has widened the economic inequality across the country[22] Despite sustained high economic growth rate approximately 80 of its population lives on less than $2 a day (nominal) more than double the same poverty rate in China[23] Even though the arrival of Green Revolution brought end to famines in India[24] 40 of children under the age of three are underweight and a third of all men and women suffer from chronic energy deficiency[25]

Goldman Sachs predicts that inspite of the high growth rate India will continue to remain a low-income country for several decades with per capita incomes well below its other BRIC peers[10]

chemicals leather manufactures

Main export

partners

US 15 the Peoples Republic of China

87 UAE 87 UK 44 (2007)

Imports $2875 billion fob (2008 est)

Import goods crude oil machinery gems fertilizer

chemicals

Main import

partners

Peoples Republic of China 106 US

78 Germany 44 Singapore 44

Public finances

Public debt $1638 billion (2008)

Revenues $1535 billion (2008 est)

Expenses $2053 billion (2008 est)

Main data source CIA World Fact Book

All values unless otherwise stated are in US dollars

Contents

1 History 11 Pre-colonial 12 Colonial 13 Independence to 1991 14 After 1991

2 Sectors 21 Agriculture 22 Industry and services 23 Banking and finance 24 Natural resources

3 External trade and investment 31 Global trade relations 32 Balance of payments



History



Pre-colonial











of Discovery[27]








Colonial



(18571900) as per 194849 prices[32]




World War II
















After 1991





Sectors

Agriculture






















States[65]








Banking and finance















Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links










History



Pre-colonial











of Discovery[27]








Colonial



(18571900) as per 194849 prices[32]




World War II
















After 1991





Sectors

Agriculture






















States[65]








Banking and finance















Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links















Colonial



(18571900) as per 194849 prices[32]




World War II
















After 1991





Sectors

Agriculture






















States[65]








Banking and finance















Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links























After 1991





Sectors

Agriculture






















States[65]








Banking and finance















Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links
























States[65]








Banking and finance















Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links














Banking and finance















Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links














Natural resources























Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links




















Mumbai



Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links










Balance of payments








the IMF data



1 Mauritius 85178 4424[112]








Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links












Currency







Mumbai



As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links










As of 2005












Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links










Employment







Economic trends







Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links












Issues

Agriculture











An Indian farmer



subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links










subcontinent



Corruption





Government











Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links













Education



Infrastructure






employees[134]









Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links













Labour laws





















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links


















See also







Kerala




Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links











Notes


August 25 2007 5 ^













































































































































References

Books







Papers





















News











Articles









External links





































































































































References

Books







Papers





















News











Articles









External links


















News











Articles









External links













External links










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