The Indian Economy

- Vandana Puttaparthi

Indian EconomyLocation : AsiaCapital : New DelhiFinancial Capital : Mumbai, Maharashtra India : Developing NationRank : 7th (nominal GDP) / 3rd (PPP)Currency : 1 Indian Rupee (INR) = 100 paisaTrade Organizations : WTO, SAFTA, BRICS, G-20 & othersStock Exchanges : BSE, NSE

StatisticsGDP : $2.308 trillion (Nominal, October 2015)  $8.027 trillion (PPP, October 2015)

GDP Growth : 7.0%(Q1 2015 - 2016)

GDP Per Capita : $1,688(Nominal: 131st ; October 2015)   $6,209 (PPP: 121st ; 2015)

Inflation : CPI 3.66% WPI -4.96%

Main Industries : Software, Petroleum products, Chemicals, Pharmaceuticals, Agriculture, Textiles, Steel, Transportation Equipment, Machinery, Leather, Cement, Mining, Construction

ExportsExports : $313.2 billion: merchandise exports

$150.9 billion: services exports $464.2 billion: Total (2013)

Export Goods : Software, Petrochemicals, Agriculture products, Jewellery, engineering goods, Pharmaceuticals, Textiles, Chemicals, Transportation , Ores and other commodities

Main Export Partners :  European union 16.7%(2013)  United States 12.5%  United Arab Emirates 10.1%  China  4.9%  Sinagpore 4.2%

ImportsImports : $466 billion: merchandise imports

$124.6 billion: services imports$590.6 billion: Total (2013)

Import Goods : Crude oil, Gold and Precious stones, Electronics, Engineering goods, Chemicals , Plastics, Coal and ores, iron and steel, Vegetable oil and other commodities

Main Import Partners :  China 11.1% (2013)  European Union 10.6%  Saudi Arabia 7.9%  Unites Arab Emirates 7.1%   Switzerland 5.3%

Public FinancesPublic Debt : 64.9% of GDP (2014)

Budget Deficit : 3.9% of GDP (2015–16)

Revenues : 27.5 trillion (US$420 billion) (2015,IMF)

Expenses : 37.6 trillion (US$570 billion) (2015,IMF)

Sector and contribution Sector Contribution to

GDP (%)Contribution to Employment (%)

Agriculture 17 51Industry 26 22Services 57 27

Factors Contributing to the Decline of Indian EconomyUnemployment - Unemployment Rate Up at 4.9% in FY14:

Labour Ministry.

Government , subsidies, policies

Effect on SENSEX and NIFTY

Global Factors

Taxation Policies

Factors Contributing to the growth of Indian EconomyRate of Youth – young generation ready to workGovernment Policies - Like Increase in FDI Increasing Investors Start up CultureLow dependency rateHealthy savings Increasing integration into global Economy

12th Fiver year Plan - HighlightsTheme of the Approach Paper is “faster, sustainable and

more inclusive growth” Annual average economic growth rate - 8.2 %GDP increase of 37%Agriculture growth of 4%, Manufacturing Sector growth of

10%135% growth from the 11th five year planAreas of main thrust are-infrastructure, health and

educationThe outlay on health would include increased spending in

related areas of drinking water and sanitation

Approaches to achieve results :1. Enhancing the Capacity for Growth2. Enhancing Skills and Faster Generation of Employment3. Managing the Environment4. Markets for Efficiency and Inclusion5. Decentralization, Empowerment and Information6. Technology and Innovation7. Securing the Energy Future for India8. Accelerated Development of Transport Infrastructure9. Rural Transformation and Sustained Growth of Agriculture10. Managing Urbanization11. Improved Access to Quality Education12. Better Preventive and Curative Health Care