Economy India
Economy - overview:
India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. About three-fifths of the work force is in agriculture, leading the United Progressive Alliance (UPA) government to articulate an economic reform program that includes developing basic infrastructure to improve the lives of the rural poor and boost economic performance. The government has reduced controls on foreign trade and investment. Higher limits on foreign direct investment were permitted in a few key sectors, such as telecommunications. However, tariff spikes in sensitive categories, including agriculture, and incremental progress on economic reforms still hinder foreign access to India's vast and growing market. Privatization of government-owned industries remains stalled and continues to generate political debate; populist pressure from within the UPA government and from its Left Front allies continues to restrain needed initiatives. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India achieved 8.5% GDP growth in 2006, and again in 2007, significantly expanding production of manufactures. India is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers. Economic expansion has helped New Delhi continue to make progress in reducing its federal fiscal deficit. However, strong growth combined with easy consumer credit and a real estate boom fueled inflation concerns in 2006 and 2007, leading to a series of central bank interest rate hikes that have slowed credit growth and eased inflation concerns. The huge and growing population is the fundamental social, economic, and environmental problem.
GDP (purchasing power parity):
$2.989 trillion (2007 est.)
GDP (official exchange rate):
$1.099 trillion (2007 est.)
GDP - real growth rate:
9.2% (2007 est.)
GDP - per capita (PPP):
$2,700 (2007 est.)
GDP - composition by sector:
agriculture: 17.6%
industry: 29.4%
services: 52.9% (2007 est.)
Labor force:
516.4 million (2007 est.)
Labor force - by occupation:
agriculture: 60%
industry: 12%
services: 28% (2003)
Unemployment rate:
7.2% (2007 est.)
Population below poverty line:
25% (2007 est.)
Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 31.1% (2004)
Distribution of family income - Gini index:
36.8 (2004)
Inflation rate (consumer prices):
6.4% (2007 est.)
Investment (gross fixed):
34.6% of GDP (2007 est.)
Budget:
revenues: $141.8 billion
expenditures: $178.3 billion (2007 est.)
Public debt:
58% of GDP (federal and state debt combined) (2007 est.)
Agriculture - products:
rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish
Industries:
textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software
Industrial production growth rate:
8.9% (2007 est.)
Electricity - production:
661.6 billion kWh (2005)
Electricity - production by source:
fossil fuel: 81.7%
hydro: 14.5%
nuclear: 3.4%
other: 0.3% (2001)
Electricity - consumption:
488.5 billion kWh (2005)
Electricity - exports:
67 million kWh (2005)
Electricity - imports:
1.764 billion kWh (2005)
Oil - production:
834,600 bbl/day (2005 est.)
Oil - consumption:
2.438 million bbl/day (2005 est.)
Oil - exports:
350,000 bbl/day (2005 est.)
Oil - imports:
2.098 million bbl/day (2004 est.)
Oil - proved reserves:
5.7 billion bbl (2007 est.)
Natural gas - production:
28.68 billion cu m (2005 est.)
Natural gas - consumption:
34.47 billion cu m (2005 est.)
Natural gas - exports:
0 cu m (2005 est.)
Natural gas - imports:
5.793 billion cu m (2005)
Natural gas - proved reserves:
1.056 trillion cu m (1 January 2006 est.)
Current account balance:
-$19.35 billion (2007 est.)
Exports:
$150.8 billion f.o.b. (2007 est.)
Exports - commodities:
petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures
Exports - partners:
US 17%, UAE 8.3%, China 7.7%, UK 4.3% (2006)
Imports:
$230.2 billion f.o.b. (2007 est.)
Imports - commodities:
crude oil, machinery, gems, fertilizer, chemicals
Imports - partners:
China 8.7%, US 6%, Germany 4.6%, Singapore 4.6%, Australia 4% (2006)
Economic aid - recipient:
$1.724 billion (2005)
Reserves of foreign exchange and gold:
$275 billion (31 December 2007 est.)
Debt - external:
$148.1 billion (31 December 2007)
Stock of direct foreign investment - at home:
$95.28 billion (2007 est.)
Stock of direct foreign investment - abroad:
$37.62 billion (2007 est.)
Market value of publicly traded shares:
$818.9 billion (2006)
Currency (code):
Indian rupee (INR)
Currency code:
INR
Exchange rates:
Indian rupees per US dollar - 41.487 (2007), 45.3 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003)
Fiscal year:
1 April - 31 March
Communications India
Telephones - main lines in use:
49.75 million (2005)
Telephones - mobile cellular:
166.1 million (2006)
Telephone system:
general assessment: recent deregulation and liberalization of telecommunications laws and policies have prompted rapid growth; local and long distance service provided throughout all regions of the country, with services primarily concentrated in the urban areas; steady improvement is taking place with the recent admission of private and private-public investors, but combined fixed and mobile telephone density remains low at about 20 for each 100 persons nationwide and much lower for persons in rural areas; fastest growth is in cellular service with modest growth in fixed lines
domestic: mobile cellular service introduced in 1994 and organized nationwide into four metropolitan areas and 19 telecom circles each with about three private service providers and one state-owned service provider; in recent years significant trunk capacity added in the form of fiber-optic cable and one of the world's largest domestic satellite systems, the Indian National Satellite system (INSAT), with 6 satellites supporting 33,000 very small aperture terminals (VSAT)
international: country code - 91; a number of major international submarine cable systems, including Sea-Me-We-3 with landing sites at Cochin and Mumbai (Bombay), Sea-Me-We-4 with a landing site at Chennai, Fiber-Optic Link Around the Globe (FLAG) with a landing site at Mumbai (Bombay), South Africa - Far East (SAFE) with a landing site at Cochin, the i2i cable network linking to Singapore with landing sites at Mumbai (Bombay) and Chennai (Madras), and Tata Indicom linking Singapore and Chennai (Madras), provide a significant increase in the bandwidth available for both voice and data traffic; satellite earth stations - 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean region); 9 gateway exchanges operating from Mumbai (Bombay), New Delhi, Kolkata (Calcutta), Chennai (Madras), Jalandhar, Kanpur, Gandhinagar, Hyderabad, and Ernakulam
Radio broadcast stations:
AM 153, FM 91, shortwave 68 (1998)
Radios:
116 million (1997)
Television broadcast stations:
562 (1997)
Televisions:
63 million (1997)
Internet country code:
.in
Internet hosts:
2.306 million (2007)
Internet Service Providers (ISPs):
43 (2000)
Internet users:
60 million (2005)
Transportation India
Airports:
346 (2007)
Airports - with paved runways:
total: 250
over 3,047 m: 18
2,438 to 3,047 m: 52
1,524 to 2,437 m: 75
914 to 1,523 m: 84
under 914 m: 21 (2007)
Airports - with unpaved runways:
total: 96
over 3,047 m: 1
2,438 to 3,047 m: 1
1,524 to 2,437 m: 7
914 to 1,523 m: 40
under 914 m: 47 (2007)
Heliports:
30 (2007)
Pipelines:
condensate/gas 9 km; gas 7,488 km; liquid petroleum gas 1,861 km; oil 7,883 km; refined products 6,422 km (2007)
Railways:
total: 63,221 km
broad gauge: 46,807 km 1.676-m gauge (17,343 km electrified)
narrow gauge: 13,290 km 1.000-m gauge (165 km electrified); 3,124 km 0.762-m gauge and 0.610-m gauge (2006)
Roadways:
total: 3,383,344 km
paved: 1,603,705 km
unpaved: 1,779,639 km (2002)
Waterways:
14,500 km
note: 5,200 km on major rivers and 485 km on canals suitable for mechanized vessels (2006)
Merchant marine:
total: 477 ships (1000 GRT or over) 8,350,093 GRT/14,339,440 DWT
by type: bulk carrier 101, cargo 220, chemical tanker 18, combination ore/oil 1, container 9, liquefied gas 19, passenger 3, passenger/cargo 10, petroleum tanker 95, roll on/roll off 1
foreign-owned: 5 (China 1, Hong Kong 1, UAE 2, UK 1)
registered in other countries: 54 (Barbados 1, Comoros 2, Cyprus 1, Dominica 2, North Korea 1, Liberia 2, Malta 3, Mauritius 2, Panama 25, Singapore 9, St Kitts and Nevis 1, St Vincent and The Grenadines 5, unknown 2) (2007)
Ports and terminals:
Chennai, Haldia, Jawaharal Nehru, Kandla, Kolkata (Calcutta), Mormugao, Mumbai (Bombay), New Mangalore, Vishakhapatnam
Military India
Military branches:
Army, Navy (includes naval air arm), Air Force, Coast Guard (2008)
Military service age and obligation:
16 years of age for voluntary military service; no conscription (2008)
Manpower available for military service:
males age 16-49: 301,094,084
females age 16-49: 283,047,141 (2008 est.)
Manpower fit for military service:
males age 16-49: 231,161,111
females age 16-49: 236,633,962 (2008 est.)
Manpower reaching militarily significant age annually:
males age 16-49: 11,592,516
females age 16-49: 10,636,857 (2008 est.)
Military expenditures - percent of GDP:
2.5% (2006)
Transnational Issues India
Disputes - international:
since China and India launched a security and foreign policy dialogue in 2005, consolidated discussions related to the dispute over most of their rugged, militarized boundary, regional nuclear proliferation, Indian claims that China transferred missiles to Pakistan, and other matters continue; various talks and confidence-building measures have cautiously begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world's largest and most militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); India and Pakistan have maintained the 2004 cease fire in Kashmir and initiated discussions on defusing the armed stand-off in the Siachen glacier region; Pakistan protests India's fencing the highly militarized Line of Control and construction of the Baglihar Dam on the Chenab River in Jammu and Kashmir, which is part of the larger dispute on water sharing of the Indus River and its tributaries; UN Military Observer Group in India and Pakistan (UNMOGIP) has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; to defuse tensions and prepare for discussions on a maritime boundary, India and Pakistan seek technical resolution of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch in the Arabian Sea; Pakistani maps continue to show its Junagadh claim in Indian Gujarat State; discussions with Bangladesh remain stalled to delimit a small section of river boundary, to exchange territory for 51 Bangladeshi exclaves in India and 111 Indian exclaves in Bangladesh, to allocate divided villages, and to stop illegal cross-border trade, migration, violence, and transit of terrorists through the porous border; Bangladesh protests India's attempts to fence off high-traffic sections of the border; dispute with Bangladesh over New Moore/South Talpatty/Purbasha Island in the Bay of Bengal deters maritime boundary delimitation; India seeks cooperation from Bhutan and Burma to keep Indian Nagaland and Assam separatists from hiding in remote areas along the borders; Joint Border Committee with Nepal continues to examine contested boundary sections, including the 400 square kilometer dispute over the source of the Kalapani River; India maintains a strict border regime to keep out Maoist insurgents and control illegal cross-border activities from Nepal
Refugees and internally displaced persons:
refugees (country of origin): 77,200 (Tibet/China); 69,609 (Sri Lanka); 9,472 (Afghanistan)
IDPs: at least 600,000 (about half are Kashmiri Pandits from Jammu and Kashmir) (2007)
Trafficking in persons:
current situation: India is a source, destination, and transit country for men, women, and children trafficked for the purposes of forced labor and commercial sexual exploitation; internal forced labor may constitute India's largest trafficking problem; men, women, and children are held in debt bondage and face forced labor working in brick kilns, rice mills, agriculture, and embroidery factories; women and girls are trafficked within the country for the purposes of commercial sexual exploitation and forced marriage; children are subjected to forced labor as factory workers, domestic servants, beggars, and agriculture workers, and have been used as armed combatants by some terrorist and insurgent groups; India is also a destination for women and girls from Nepal and Bangladesh trafficked for the purpose of commercial sexual exploitation; Indian women are trafficked to the Middle East for commercial sexual exploitation; men and women from Bangladesh and Nepal are trafficked through India for forced labor and commercial sexual exploitation in the Middle East
tier rating: Tier 2 Watch List - India is on the Tier 2 Watch List for a fifth consecutive year for its failure to provide evidence of increasing efforts to combat human trafficking in 2007; despite the reported extent of the trafficking crisis in India, government authorities made uneven efforts to prosecute traffickers and protect trafficking victims; government authorities continued to rescue victims of commercial sexual exploitation and forced child labor and child armed combatants, and began to show progress in law enforcement against these forms of trafficking; a critical challenge overall is the lack of punishment for traffickers, effectively resulting in impunity for acts of human trafficking; India has not ratified the 2000 UN TIP Protocol (2008)