Economic Trends/Outlook in India

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Economic Overview

India is amongst the world's 10 largest economies. The average GNP growth rate was 9.4% in average over the period 2006-07. This growth rate dropped during the global recession, the crisis affected India by the increase of risk aversion, a withdrawal of foreign capital and the drop of global demand.  However, India was a country that quickly got out of the crisis, its growth was stimulated by private consumption and by the state's expenditures.  From 5.7% in 2009, the growth has jumped up and it is expected to reach 9.7% in 2010 according to the estimations. 

The government has established as its priorities to continue the reforms that will allow to sustain the growth, to modernize the economic structure and to fight against poverty.  Programs concerning jobs, health, education, infrastructures and rural communities have also been announced.  The pursuit of a re-balance in public finance is also projected, the objective is to bring the deficit to 5.5% of the GDP. 

India remains a poor country: the GDP per capita is low, almost 25% of the population still lives below the poverty line and the inequalities are very strong.

Main Indicators 2009 2010 2011 2012 2013
GDP (billions USD) 1,268.88 1,537.97e 1,704.06e 1,858.97e 2,061.14e
GDP (Constant Prices, Annual % Change) 6.8 10.4e 8.2e 7.8e 8.2e
GDP per Capita (USD) 1,058e 1,265e 1,382e 1,488e 1,628e
General Government Balance (in % of GDP) -11.0 -10.0e -8.8e -7.7e -6.3e
General Government Gross Debt (in % of GDP) 71.1 69.2e 68.2e 67.7e 65.3e
Inflation Rate (%) 10.9 13.2e 7.5e 6.9e 4.9e
Current Account (billions USD) -25.89e -29.70e -30.43e -32.36e -
Current Account (in % of GDP) -2.1e -2.2e -2.0e -2.0e -

Source: IMF - World Economic Outlook Database

Note: (e) Estimated Data


Main Sectors of Industry

India is the world's fourth agricultural power. Agriculture contributes to about 20% of the GNP and employs close to two-thirds of the active population. The main agricultural products are: wheat, millet, rice, corn, sugar cane, tea, potatoes and cotton.  India is also the second producer of cattle, third producer of sheep and fourth in fishing production. 

Coal is the country's main energy source (India is the third largest world producer of coal). In the manufacturing industry, textile plays a predominant role. In terms of size, the chemical industry is the second largest industrial sector (12% of the GNP).

The services sector is the most dynamic part of the Indian economy.  It contributes to more than half of its GDP, and it does not employ but a third of its active population.  The software sector, which grows rapidly, is boosting the export of services and modernizing the Indian economy.

Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) - - -
Value Added (in % of GDP) 17.1 28.2 54.6
Value Added (Annual % Change) 0.2 9.3 8.5

Source: World Bank - Last Available Data.

For more detailed background on Industries in India, click here.

Indicator of Economic Freedom

Mostly unfree
World Rank:
Regional Rank:

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation


Country Risk

See the Country Risk Analysis Provided By Ducroire.


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