The economy of India is the eleventh largest economy in the world by nominal GDP[1] and the fourth

largest by purchasing power parity (PPP).[9] Following strong economic reforms from the socialist
inspired economy of a post-independence Indian nation, the country began to develop a fast-
paced economic growth, as free market principles were initiated in 1990 for international competition and
foreign investment.[10] India is an emerging economic power with a very large pool of human and natural
resources, and a growing large pool of skilled professionals. According to the book 'Contours of the World
Economy, 1-2030AD' by Angus Maddison, India was the largest economy from the year 1 AD until the
colonial period whereupon it was taken over by other countries such as China and the U.K. Economists
predict that by 2020,India will be among the leading economies of the world.[11]

India was under social democratic-based policies from 1947 to 1991. The economy was characterised
by extensive regulation,protectionism, public ownership, pervasive corruption and slow growth.[12][13][14]
[15]
Since 1991, continuing economic liberalisationhas moved the country toward a market-based
economy.[13][14] A revival of economic reforms and better economic policy in first decade of the 21st
century accelerated India's economic growth rate. In recent years, Indian cities have continued to
liberalize business regulations.[6] By 2008, India had established itself as the world's second-fastest
growing major economy.[16][17][18]However, as a result of the financial crisis of 2007–2010, coupled with a
poor monsoon, India's gross domestic product (GDP) growth rate significantly slowed to 6.7% in 2008-09,
but subsequently recovered to 7.2% in 2009-10, while the fiscal deficit rose from 5.9% to a high 6.5%
during the same period.[19]

India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural
sector contribute 28% and 14.6% respectively.[20] Agriculture is the predominant occupation in India,
accounting for about 52% of employment. The servicesector makes up a further 34%, and industrial
sector around 14%.[21] The labour force totals half a billion workers. Major
agriculturalproducts include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water
buffalo, sheep, goats, poultry and fish.[22]Major industries
include telecommunications, textiles, chemicals, food processing, steel, transportation
equipment, cement, mining,petroleum, machinery, information technology enabled services
and pharmaceuticals.[22]

India's per capita income (nominal) is 40,745 (US$ 924.91),[23] ranked 139th in the world,[24] while its per
capita (PPP) of US$2,940 is ranked 128th.[25][26] Previously a closed economy, India's trade has grown
fast.[13] India currently accounts for 1.5% of World trade as of 2007 according to the WTO. According to
the World Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and
imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was
$143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services
trade was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's
trade has reached a still relatively moderate share 24% of GDP in 2006, up from 6% in 1985.[13]

Modern Indian notes

Rank 11th (nominal) / 4th (PPP)

Currency
1 Indian Rupee (INR) ( ) = 100 Paise

Fiscal year Calendar year (1 April — 31 March)

Trade WTO, SAFTA, G-20 and others

organizatio

ns

Statistics

GDP $1.235 trillion (nominal: 11th; 2009)[1]

$3.526 trillion (PPP: 4th; 2009)[1]

GDP 8.8% (2010, Q1)[2]

growth

GDP per
$1,032 (nominal: 142th; 2009)[1]
capita
$3,015 (PPP: 127th; 2009)[1]

GDP by agriculture (15%), industry (28%), services (57%) (2009-10)

sector

Inflation ( 8.62% (September 2010)[3]

CPI)

Population 37% (2010)[4]

below pove

rty line

Gini index 36.8 (List of countries)

Labour 467 million (2nd; 2009)

force

Labour agriculture (52%), industry (14%), services (34%) (2009 est.)

force
by

occupation

Unemploy 9.4% (2009-10)[5]

ment

Main telecommunications, textiles,chemicals, food

industries processing, steel,transportationequipment, cement,mining, petroleum, machine

ry,informationtechnology,pharmaceuticals

Ease of 133rd[6]

Doing

Business

Rank

External

Exports $176.5 billion (18th; 2009)

Export software, petroleum products, textile goods, gems and jewelry, engineering

goods goods, chemicals, leather manufactures

Main US 12.3%, UAE 9.4%, China 9.3% (2008)

export

partners

Imports $287.5 billion (15th; 2009)

Import crude oil, machinery, gems, fertilizer, chemicals

goods

Main China 11.1%, Saudi

import Arabia 7.5%, US6.6%, UAE 5.1%, Iran 4.2%, Singapore4.2%, Germany 4.2%

partners (2008)

FDI stock Home: $161.3 billion (24th; 2009)

Abroad: $77.4 billion (24th; 2009)

Gross $223.9 billion (31 December 2009 est.)

external

debt

Public finances

Public 58% of GDP (2009 est.)[7]

debt

Revenues $129.8 billion (2009 est.)

Expenses $214.6 billion (2009 est.)

Economic $1.724 billion (2005)[8]

aid
 Foreign $294.01 billion (6th; Oct 2010)

reserves

Main data source: CIA World Fact Book

All values, unless otherwise stated, are in US dollars

Industry and services

See also: Information technology in India, Business process outsourcing in India, and Retailing in India

India has one of the world's fastest growing automobile industries[63][64] Shown here is the Tata Motors' Nano, the world's
cheapest car.[65]

Industry accounts for 28% of the GDP and employ 14% of the total workforce.[21] However, about one-
third of the industrial labour force is engaged in simple household manufacturing only.[66][verification needed] In
absolute terms, India is 16th in the world in terms of nominal factory output.[67]

Economic reforms brought foreign competition, led to privatisation of certain public sector industries,
opened up sectors hitherto reserved for the public sector and led to an expansion in the production of
fast-moving consumer goods.[68] Post-liberalisation, the Indian private sector, which was usually run by
oligopolies of old family firms and required political connections to prosper was faced with foreign
competition, including the threat of cheaper Chinese imports. It has since handled the change by
squeezing costs, revamping management, focusing on designing new products and relying on low labour
costs and technology.[69]

Textile manufacturing is the second largest source for employment after agriculture and accounts for 26%
of manufacturing output.[70] Ludhianaproduces 90% of woolens in India and is also known as the
Manchester of India. Tirupur has gained universal recognition as the leading source of hosiery, knitted
garments, casual wear and sportswear.[71] Dharavi slum in Mumbai has gained fame for leather
products. Tata Motors' Nanoattempts to be the world's cheapest car.[65]

India is fifteenth in services output. It provides employment to 23% of work force, and it is growing fast,
growth rate 7.5% in 1991–2000 up from 4.5% in 1951–80. It has the largest share in the GDP, accounting
for 55% in 2007 up from 15% in 1950.[21]

Business services (information technology, information technology enabled services, business process
outsourcing) are among the fastest growing sectors contributing to one third of the total output of services
in 2000. The growth in the IT sector is attributed to increased specialization, and an availability of a large
pool of low cost, but highly skilled, educated and fluent English-speaking workers, on the supply side,
matched on the demand side by an increased demand from foreign consumers interested in India's
service exports, or those looking tooutsource their operations. The share of India's IT industry to the
country's GDP increased from 4.8 % in 2005-06 to 7% in 2008.[72][73] In 2009, seven Indian firms were
listed among the top 15 technology outsourcing companies in the world.[74] In March 2009, annual
revenues from outsourcing operations in India amounted to US$60 billion and this is expected to increase
to US$225 billion by 2020.[75]

Organized retail such supermarkets accounts for 24% of the market as of 2008.[76] Regulations prevent
most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licences" and
"anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for
moving goods to states, from states, and even within states.[76]

Tourism in India is relatively undeveloped, but growing at double digits. Some hospitals woo medical
tourism.[77]

Mining forms an important segment of the Indian economy, with the country producing 79 different
minerals (excluding fuel and atomic resources) in 2009-10, including iron
ore,manganese, mica, bauxite, chromite, limestone, asbestos, fluorite, gypsum, ochre, phosphorite and si
lica sand.[78]
INDIA GDP GROWTH RATE
The Gross Domestic Product (GDP) in India expanded at an annual rate of 8.80 percent in the last reported quarter. From
2004 until 2010, India's average quarterly GDP Growth was 8.37 percent reaching an historical high of 10.10 percent in
September of 2006 and a record low of 5.50 percent in December of 2004. 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. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by
about 10 percentage points. This page includes: India GDP Growth Rate chart, historical data and news.

Country Interest Rate Growth Rate Inflation Rate Jobless Rate Current Account Exchange Rate

India 5.25% 8.80% 9.82% 8.00% -13 45.0150

November 2010 UPDATE DATES

2006 DOWNLOAD DATA COMPARE INDICATORS

to
 Year Mar Jun Sep Dec

2010 8.60 8.80

2009 5.80 6.00 8.60 6.50

2008 8.50 7.80 7.50 6.10

INDIA’S SECOND QUARTER GDP RISES TO 8.8%

Published: 9/5/2010 1:59:44 PM By: TradingEconomics.com, MarketWatch

India's economy expanded 8.8% in the second quarter from a year earlier, compared
to an 8.6% on-year expansion in the first, lifted by robust activity in manufacturing.
Agricultural output along with strong development in the Industrial and Mining sector has helped
to boost the Indian economy. Agricultural output rose 2.8 per cent y-o-y thanks to improved
harvests. Industrial production increased by 12% and in the mining sector by 9%.

However, in spite of strong supply data, private consumption slumped to 0.3% y-o-y in Q2 from
2.6% in Q1, fixed investment has dropped to 3.7% from 17.7%, government consumption growth
was negative and both export and import growth contracted.

The Reserve Bank Of India has stated that it had seen an annual growth of 8.5% steadily. The
main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% last
month. Interest rates have been increased by the banks to contain the inflation, but it could slow
down the growth of the Indian economy in the coming months. But even thought there has been a
rise in the interest rates there hasn’t been much change in the distribution of loans, the Indian
customer is hardly affected with the hiked interest rates.