Indian Economy is Our Economy

 

In 1947, the average annual income in India was US$619, compared with US$439 for China, US$770 for South Korea, and US$936 for Taiwan. By 1999, the numbers were US$1,818; US$3,259; US$13,317; and US$15,720, respectively. (Numbers are in 1990 international Maddison dollars.) In other words, the average income in India was not much different from South Korea in 1947, but South Korea became a developed country by the 2000s. At the same time, India was left as one of the world's poorer countries.
In 2004 BBC stated that about a quarter of the world's poor people lives in india. If you take on the calorific count than 50% of the people in india are poor people.  The major setback is due to our population of 1.2 billion growing steadily at 1.3% per year.

Other main reasons for india still being a developing nation is because of the fact that division of resources, as well as wealth, is uneven in India. This disparity creates different poverty ratios for different states. For instance, states such as Delhi and Punjab have low poverty ratios. On the other hand, almost half the population in states like Bihar, U.P. and Orissa live below the poverty line.

National Shame: The dedfinition of poverty by the Indian Goevrnment has been questioned by several world bodies like U.N. and also BBC.

 Malnutririon is fact associated with the poverty. About 45% of world's malnutritioned childrens live in india. About 6.3% of indian children die every year before reaching the age of 5, 4 children every minute.

The Indian economy has an underground economy, with an alleged 2006 report by the Swiss Bankers Association suggesting India topped the worldwide list for black money with almost $1,456 billion stashed in Swiss banks. This amounts to 13 times the country's total external debt.

India has many long-term challenges that it has not yet fully addressed, including poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration. Economic growth is constrained by inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities, regulatory and foreign investment controls, the "reservation" of key products for small-scale industries, and high fiscal deficits. The outlook for further trade liberalization is mixed, and a key World Trade Organization (WTO) Doha Ministerial in July 2008 was unsuccessful due to differences between the U.S. and India (as well as China) over market access. India eliminated quotas on 1,420 consumer imports in 2002 and incrementally lowered non-agricultural customs duties in later budgets. However, the tax structure is complex, with compounding effects of various taxes.

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for nearly two-thirds of India's output, with less than one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers.

GDP (purchasing power parity):
$4.735 trillion (2012 est.) country comparison to the world: 4 $4.492 trillion (2011 est.) $4.205 trillion (2010 est.) note:data are in 2012 US dollars
GDP (official exchange rate):
$1.947 trillion (2012 est.)
GDP - real growth rate:
5.4% (2012 est.) country comparison to the world: 50 6.8% (2011 est.) 10.1% (2010 est.)
GDP - per capita (PPP):
$3,900 (2012 est.) country comparison to the world: 164 $3,700 (2011 est.) $3,500 (2010 est.) note:data are in 2012 US dollars
GDP - composition by sector:
agriculture: 17% industry: 18% services: 65% (2011 est.)
Labor force:
498.4 million (2012 est.) country comparison to the world: 2
Labor force - by occupation:
agriculture: 53% industry: 19% services: 28% (2011 est.)
Unemployment rate:
9.9% (2012 est.) country comparison to the world: 108 9.8% (2011 est.)
Population below poverty line:
29.8% (2010 est.)
Household income or consumption by percentage share:
lowest 10%: 3.6% highest 10%: 31.1% (2005)
Distribution of family income - Gini index:
36.8 (2004) country comparison to the world: 76 37.8 (1997)
Investment (gross fixed):
30% of GDP (2012 est.) country comparison to the world: 19
Budget:
revenues: $171.5 billion expenditures: $281 billion (2012 est.)
Taxes and other revenues:
8.8% of GDP (2012 est.) country comparison to the world: 209
Budget surplus (+) or deficit (-):
-5.6% of GDP (2012 est.) country comparison to the world: 166
Public debt:
51.9% of GDP (2012 est.) country comparison to the world: 60 50.5% of GDP (2011 est.) note:data cover central government debt, and exclude debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data exclude debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
Inflation rate (consumer prices):
9.2% (2012 est.) country comparison to the world: 195 8.9% (2011 est.)
Central bank discount rate:
5.5% (31 December 2010 est.) country comparison to the world: 62 6% (31 December 2009 est.) note:the Indian central bank's policy rate - the repurchase rate - was 8% during December 2012
Commercial bank prime lending rate:
10.8% (31 December 2012 est.) country comparison to the world: 90 10.19% (31 December 2011 est.)
Stock of narrow money:
$342.3 billion (31 December 2012 est.) country comparison to the world: 16 $305.7 billion (31 December 2011 est.)
Stock of broad money:
$1.451 trillion (31 December 2012 est.) country comparison to the world: 15 $1.293 trillion (31 December 2011 est.)
Stock of domestic credit:
$1.402 trillion (31 December 2012 est.) country comparison to the world: 14 $1.249 trillion (31 December 2011 est.)
Market value of publicly traded shares:
$1.015 trillion (31 December 2011) country comparison to the world: 9 $1.616 trillion (31 December 2010) $1.179 trillion (31 December 2009)
Agriculture - products:
rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish
Industries:
textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals
Industrial production growth rate:
4.8% (2011 est.) country comparison to the world: 68
Current account balance:
-$80.15 billion (2012 est.) country comparison to the world: 192 -$46.91 billion (2011 est.)
Exports:
$309.1 billion (2012 est.) country comparison to the world: 18 $305 billion (2011 est.)
Exports - commodities:
petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel
Exports - partners:
UAE 12.7%, US 10.8%, China 6.2%, Singapore 5.3%, Hong Kong 4.1% (2011)
Imports:
$500.3 billion (2012 est.) country comparison to the world: 9 $490 billion (2011 est.)
Imports - commodities:
crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals
Imports - partners:
China 11.9%, UAE 7.7%, Switzerland 6.8%, Saudi Arabia 6.1%, US 4.9% (2011)
Reserves of foreign exchange and gold:
$287.2 billion (31 December 2012 est.) country comparison to the world: 10 $297.9 billion (31 December 2011 est.)
Debt - external:
$299.2 billion (31 December 2012 est.) country comparison to the world: 30 $287.5 billion (31 December 2011 est.)
Stock of direct foreign investment - at home:
$256.6 billion (31 December 2012 est.) country comparison to the world: 21 $232.7 billion (31 December 2011 est.)
Stock of direct foreign investment - abroad:
$121.3 billion (31 December 2012 est.) country comparison to the world: 28 $106.3 billion (31 December 2011 est.)
Exchange rates:
Indian rupees (INR) per US dollar - 53.17 (2012 est.) 46.671 (2011 est.) 45.726 (2010 est.) 48.405 (2009) 43.319 (2008)
Fiscal year:
1 April - 31 March.