About Indian Economy

Introduction

India, a South Asian nation, is the 7th largest country by area, the 2nd most populous country with over 1.33 billion people, and the most populous democracy in the world. India boasts of an immensely rich cultural heritage including numerous languages, traditions and people. The country holds its uniqueness in its diversity and hence has adapted itself to international changes with poise and comfort. While the economy has welcomed international companies to invest in it with open arms since liberalization in 1990s, Indians have been prudent and pro-active in adopting global approach and skills. Indian villagers proudly take up farming, advanced agriculture and unique handicrafts as their profession on one hand while modern industries and professional services sectors are coming up in a big way on the other .

Thus, the country is attracting many global majors for strategic investments owing to the presence of vast range of industries, investment avenues and a supportive government. Huge population, mostly comprising the youth, is a strong driver for demand and an ample source of manpower.

Geographical Characteristics

Location: India lies to the north of the equator in Southern Asia

Longitude: 68° 7' to 97° 25' east

Latitude: 8° 4' to 37° 6' north

Neighbouring Countries: India lies to the north of the equator in Southern Asia

Location: Pakistan and Afghanistan share political borders with India on the West while Bangladesh and Myanmar stand adjacent on the Eastern borders. The northern boundary comprises the Sinkiang province of China, Tibet, Nepal and Bhutan. Sri Lanka is another neighbouring country which is separated by a narrow channel of sea formed by the Palk Strait and the Gulf of Mannar.

Capital: New Delhi

Coastline: 7,517 km, including the mainland, the coastlines of Andaman and Nicobar Islands in the Bay of Bengal and Lakshadweep Islands in the Arabian Sea.

Climate: Southern India majorly enjoys tropical climate but northern India experiences temperatures from sub-zero degrees to 50 degrees Celsius. Winters embrace northern India during December to February while springs blossom in March and April. Monsoons arrive in June and stay till September, followed by autumn in October and November.

Area: India measures 3,214 km from north to south and 2,933 km from east to west with a total area of 3,287,263 sq km.

Natural Resources: Coal (4th largest reserves in the world), iron ore, manganese, mica, bauxite, rare earth elements, titanium ore, chromite, natural gas, diamonds, petroleum, limestone, arable land.

Land: 2,973,190 sq km

Water: 314,070 sq km

Political Profile

Political System and Government: The world's largest democracy implemented its Constitution in 1950 that provided for a parliamentary system of Government with a bicameral parliament and three independent branches: the executive, the legislature and the judiciary. The country has a federal structure with elected governments in States.

Administrative Divisions: The Constitution of India came into force on January 26, 1950

Constitution: 29 States and 7 Union Territories

Executive Branch: The President of India is the Head of State, while the Prime Minister is the Head of the government and runs office with the support of the Council of Ministers who forms the Cabinet.

Legislative Branch: The Federal Legislature comprises of the Lok Sabha (House of the People) and the Rajya Sabha (Council of States) forming both the Houses of the Parliament.

Judicial Branch: : The Supreme Court of India is the apex body of the Indian legal system, followed by other High Courts and subordinate Courts.

Chief of State: : Hon’ble President, Mr Pranab Mukherjee (since July 25, 2012) Head of Government: Hon’ble Prime Minister, Mr Narendra Modi (since May 26, 2014) .

Demographic profile

Population: 1.33 billion

Population Growth Rate: 1.2% (2015)

Religions: Hinduism, Islam, Christianity, Sikhism, Buddhism, Jainism

Languages: Hindi, English and at least 16 other official languages

Literacy: Total population: 74.04% (provisional data-2011 census)

Male: 82.14%

Female: 65.46%

Suffrage: 18 years of age; universal

Life expectancy: 66.9 years (men), 69.9 years (women) (2015 – WHO 2016 Report)

Economic Profile

• Gross Domestic Product (GDP) Composition by Sector (2016-17 Estimate)

  • Services: 45.4%
  • Industry: 29.8%
  • Agriculture:16.5%

• Forex Reserves: US$ 366.78 billion as on March 17, 2017.

• Gross Fixed Capital Formation (GFCF) at current prices: Gross Fixed Capital Formation (GFCF) at current prices stood at Rs 8,797.63 billion (US$ 135.36 billion) in the fourth quarter of 2016.

• Value of Exports: India's exports stood at US$ 274.65 billion in 2016-17.

• Value of Imports: India’s imports stood at US$ 380.37 billion in 2016-17.

• Major Export Partners: US, Germany, UAE, China, Japan, Thailand, Indonesia and European Union. India is also tapping newer markets in Africa and Latin America.

• Currency (code): Indian rupee (INR)

• Fiscal Year: April 01 – March 31

• Cumulative FDI Equity Inflows: US$ 331.99 billion (April 2000 to March 2017)

• Share of Top Investing Countries FDI Equity Inflows: Mauritius (34%), Singapore (16%), Japan (8%), UK (7%), USA (6%), and Netherlands (6%) during April 2000 – March 2017.

• Major Sectors Attracting Highest FDI Equity Inflows: Services Sector (18%), Computer Software and Hardware (7%), Construction Development (7%), Telecommunications (7%), Automobile (5%), Drugs and Pharmaceuticals (4%), Trading (4%), Chemical (4%) during April 2000 – March 2017.