India Economy

Is India a rich country?

India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly less than half of the workforce is in agriculture, but services are the major source of economic growth, accounting for nearly two-thirds of India's output but employing 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, business outsourcing services, and software workers. Nevertheless, per capita income remains below the world average. India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and served to accelerate the country's growth, which averaged nearly 7% per year from 1997 to 2017.

India's economic growth slowed in 2011 because of a decline in investment caused by high interest rates, rising inflation, and investor pessimism about the government's commitment to further economic reforms and about slow world growth. Investors’ perceptions of India improved in early 2014, due to a reduction of the current account deficit and expectations of post-election economic reform, resulting in a surge of inbound capital flows and stabilization of the rupee. Growth rebounded in 2014 through 2016. Despite a high growth rate compared to the rest of the world, India’s government-owned banks faced mounting bad debt, resulting in low credit growth. Rising macroeconomic imbalances in India and improving economic conditions in Western countries led investors to shift capital away from India, prompting a sharp depreciation of the rupee through 2016.

The economy slowed again in 2017, due to shocks of "demonetizaton" in 2016 and introduction of GST in 2017. Since the election, the government has passed an important goods and services tax bill and raised foreign direct investment caps in some sectors, but most economic reforms have focused on administrative and governance changes, largely because the ruling party remains a minority in India’s upper house of Parliament, which must approve most bills.

India has a young population and corresponding low dependency ratio, healthy savings and investment rates, and is increasing integration into the global economy. However, long-term challenges remain significant, including: India's discrimination against women and girls, an inefficient power generation and distribution system, ineffective enforcement of intellectual property rights, decades-long civil litigation dockets, inadequate transport and agricultural infrastructure, limited non-agricultural employment opportunities, high spending and poorly targeted subsidies, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.

India Economy Data

What is the GDP of India?

Currency Name and Code Indian Rupee (INR)
GDP - Gross Domestic Product (PPP) $7,411,000,000,000 (USD)
GDP - official exchange rate $2,183,000,000,000 (USD)
GDP - real growth rate 7.3%
GDP Per Capita $6,300.00 (USD)
GDP by Sector- agriculture 16.1%
GDP by Sector- Industry 29.5%
GDP by Sector- services 54.4%
GDP - composition, by end use household consumption: 59.7%

government consumption: 11.7%

investment in fixed capital: 26.8%

investment in inventories: 4.4%

exports of goods and services: 19.4%

imports of goods and services: -22%
Population Below Poverty Line 29.8%
Inflation Rate 9.2%
Labor Force 498,400,000
Labor Force By Occupation- agriculture 49%
Labor Force By Occupation- industry 20%
Labor Force By Occupation- services 31%
Unemployment Rate 9.9%
Fiscal Year 1 April - 31 March
Annual Budget $171,500,000,000 (USD)
Budget Surplus or Deficit - percent of GDP -5.7%
Public Debt (% of GDP) 51.9%
Taxes and other revenues - percent of GDP 10.3%
Major Industries textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals
Industrial Growth Rate 4.8%
Agriculture Products rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish
Exchange Rate per US Dollar Indian rupee (INR)
Child Labor - % of children ages 5-14 12%
Child Labor - # of children ages 5-14 26,965,074
Commercial Bank Prime Lending Rate 10.6%

Labor Force by Occupation- As reported by India

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