India

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

India is amongst the world's 10 largest economies. The GDP growth rate was 9.4% in 2006-07. It decreased in 2008 and reached 6% in 2009. From 2010, growth should bounce.

Despite the economic crisis, domestic demand remained strong. This should enable the country to reduce its trade deficit, which is still at almost USD 5 billion because of the fact that the country is highly dependent on imported petroleum products. With a rate of over 6% over the past year, India is facing an inflation surge due particularly to rising food prices. The public finances situation is also worrying, with a deficit of about 4.5% of the GDP. India remains a poor country with 25% of its population still living below the threshold of poverty.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	874.77	1,102.35	1,209.69e	1,185.73e	1,234.04
GDP (constant prices, annual % change)	9.8	9.3	7.3e	4.5	5.6e
GDP per capita (USD)	757	940	1,016	982e	1,008e
Inflation rate (%)	6.2	6.4	8.3	6.3	4.0
Unemployment rate (% of the labor force)	-	-	6.8	-	-
Current Account (billions USD)	-9.30	-11.29	-33.33e	-29.13e	-32.42
Current Account (in % of GDP)	-1.1	-1.0	-2.8	-2.5	-2.6

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

India is the world's fourth agricultural power. Agriculture contributes about 20% of the GDP and employs almost two-thirds of the active population.

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

Services sector is the most dynamic part of the Indian economy both in terms of employment potential and contribution to the national income. The rapidly growing software sector is boosting service exports and modernizing Indian economy.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	-	-	-
Value added (in % of GDP)	18.1	29.5	52.4
Value added (annual % change)	4.9	8.1	10.9

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Indian Rupee (INR) - Average annual exchange rate for 1 USD	45.32	44.10	45.31	41.35	43.51

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 54.4/100
Position:: mostly unfree
World Rank:: 123 out of 179
Regional Rank:: 25 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

India had been protectionist state for a long time, but from the begining of the 1990's, the country has gradually opened up to international exchanges. In 2008, India was the world's 26th biggest exporter and the 16th biggest importer. India shows a strong trade deficit, caused by the increase in prices of raw materials, which renders imports more expensive. As for exports, the increase is slower due to the appreciation of the rupie in relation to the dollar (most exports being made in dollars) and the contraction in global demand.
The Indian government lowered the customs duties and the others non-tariff barriers on all the sectors. Nevertheless, agriculture, insurance, and retail are still widely protected.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	68,081	95,539	134,702	166,695	-
Exports of goods (millions USD)	60,893	77,939	102,176	123,617	-
Imports of services (millions USD)	24,878	35,641	47,989	63,537	-
Exports of services (millions USD)	23,902	38,281	55,831	75,354	-
Imports of goods and services (annual % change)	16.8	16.0	45.6	24.5	7.7
Exports of goods and services (annual % change)	5.8	28.1	14.8	18.9	7.5
Imports of goods and services (in % of GDP)	16.1	19.9	22.7	25.2	24.4
Exports of goods and services (in % of GDP)	14.8	18.1	19.9	22.2	21.3
Trade Balance (millions USD)	-7,188	-17,600	-32,526	-43,078	-
Trade Balance (including service) (millions USD)	-8,164	-14,960	-24,684	-31,261	-
Foreign trade (in % of GDP)	30.9	37.9	42.5	47.4	45.7

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
United States	13.8%
United Arab Emirates	9.9%
China	6.5%
Singapore	4.4%
United Kingdom	4.3%
Hong Kong	4.0%
Germany	3.2%
Netherlands	3.0%
Belgium	2.8%
Italy	2.6%
Japan	2.2%
Saudi Arabia	2.2%
Sri Lanka	1.8%
South Korea	1.7%
France	1.7%
South Africa	1.5%
Bangladesh	1.4%
Spain	1.4%
Brazil	1.3%
Indonesia	1.3%
See more countries	61.1%

Main suppliers (% of imports)	2007
China	11.2%
Saudi Arabia	7.6%
United States	6.5%
United Arab Emirates	5.4%
Switzerland	4.9%
Iran	4.2%
Germany	4.0%
Australia	3.5%
Nigeria	3.2%
Singapore	3.2%
Kuwait	3.0%
Japan	2.7%
Malaysia	2.6%
Iraq	2.5%
South Korea	2.5%
Belgium	2.2%
Indonesia	2.2%
United Kingdom	2.2%
Italy	1.6%
South Africa	1.5%
See more countries	64.5%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	16.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	13.1%
Organic chemicalsOrganic chemicals	4.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.2%
Iron and steelIron and steel	4.1%
Ores, slag and ashOres, slag and ash	4.0%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	3.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	3.2%
Articles of iron or steelArticles of iron or steel	3.1%
CottonCotton	3.0%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	2.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	2.8%
Pharmaceutical productsPharmaceutical products	2.6%
Copper and articles thereofCopper and articles thereof	2.0%
CerealsCereals	1.9%
Plastics and articles thereofPlastics and articles thereof	1.8%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	1.6%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.0%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.9%
Man-made staple fibresMan-made staple fibres	0.9%
Ships, boats and floating structuresShips, boats and floating structures	0.9%
Man-made filamentsMan-made filaments	0.8%
Rubber and articles thereofRubber and articles thereof	0.8%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.8%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.8%
Sugars and sugar confectionerySugars and sugar confectionery	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.6%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Meat and edible meat offalMeat and edible meat offal	0.6%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.6%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.4%
Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.3%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
Zinc and articles thereofZinc and articles thereof	0.3%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
SilkSilk	0.2%
Glass and glasswareGlass and glassware	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.1%
Ceramic productsCeramic products	0.1%
Prepared feathers and down and articles made of...Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair	0.1%
Other vegetable textile fibres; paper yarn and...Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.1%
See more products	58.0%

Main imports (% of imports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	33.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	12.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	10.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.5%
Iron and steelIron and steel	3.8%
Organic chemicalsOrganic chemicals	3.4%
Ores, slag and ashOres, slag and ash	2.3%
FertilizersFertilizers	1.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.8%
Plastics and articles thereofPlastics and articles thereof	1.7%
Articles of iron or steelArticles of iron or steel	1.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.4%
Ships, boats and floating structuresShips, boats and floating structures	1.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.2%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Rubber and articles thereofRubber and articles thereof	0.6%
Copper and articles thereofCopper and articles thereof	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.6%
CerealsCereals	0.6%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.5%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.4%
Nickel and articles thereofNickel and articles thereof	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Pharmaceutical productsPharmaceutical products	0.3%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
CottonCotton	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Man-made filamentsMan-made filaments	0.2%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.2%
Ceramic productsCeramic products	0.2%
SilkSilk	0.2%
Glass and glasswareGlass and glassware	0.2%
Zinc and articles thereofZinc and articles thereof	0.2%
Lead and articles thereofLead and articles thereof	0.2%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
See more products	31.4%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

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

Political outline

Executive Power: President is the chief of the state and is elected by an electoral college consisting of elected members of both houses of Parliament and the legislatures of the provinces for a five-year term.
Prime Minister is the head of the government and is chosen by parliamentary members of the majority party following legislative elections, to serve a term of five years. The President, on the recommendation of the Prime Minister, appoints the Cabinet.
Legislative Power: The legislature is bicameral. The Parliament consists of: Council of States and the People's Assembly. People of India enjoy considerable political rights.
Main political parties: India has a multi-party system with predominance of small regional parties.

The major political parties in the country are:

- Indian National Congress: a major political party involved in India's independence movement
- Bharatiya Janta Party: pro-Hindu, nationalist ideology,
- Communist Party of India: Marxism-Leninism,
- Bahujan Samajwadi Party: draws support from backward classes & religious minorities.
Current political leaders: President: Mrs. Pratiba Patil (since July 2007) - non-partisan
Prime Minister: Manmohan SINGH (since May 2004, reelected in May 2009) – INC, heading a coalition government with CPI(M) & other parties.
Next election dates: Presidential: July 2012