Economy of India
|Economy of India|
|Currency||Indian rupee (INR) () = 100 Paise|
|1 April – 31 March|
|WTO, SAFTA, BRICS, G-20 and others|
|GDP rank||10th (nominal) / 3rd (PPP)|
5.5% (2014 est.)
GDP per capita
GDP by sector
|agriculture: 13.7%, industry: 21.5%, services: 64.8% (2013)|
|CPI: 4.3%, WPI: 0.0% (Nov 2014)|
Population below poverty line
|29.5% (2012, Rangarajan panel)
22% (2012, Reserve Bank of India),
179.6 million people (2014, World Bank)
|33.9 (2012 est.)|
|487.3 million (2013 est.)|
Labour force by occupation
|agriculture: 49%, industry: 20%, services: 31% (2012 est.)|
|Unemployment||3% Urban, 2% Rural, 10.8 million Total
(2013, NSSO method)
Average gross salary
|$1.46 per hour ($3,036.8 yearly in 2010);
GNI per capita: $1,570 yearly per person (2013);
Average household income: $6,671 yearly (2011)
|agriculture, petroleum products, chemicals, pharmaceuticals, software, textiles, steel, transportation equipment, machinery, cement, mining, construction|
|Exports||$313.2 billion: merchandize exports,
$150.9 billion: services exports,
$464.2 billion: total (2013)
|software, petrochemicals, agriculture products, jewelry, engineering goods, pharmaceuticals, textiles, chemicals, transportation parts, ores and other commodities|
Main export partners
| European Union 16.7%(2013)
United States 12.5%
United Arab Emirates 10.1%
|Imports||$466 billion: merchandize imports,
$124.6 billion: services imports,
$590.6 billion: total (2013)
|crude oil, gold and precious stones, electronics, engineering goods, chemicals, plastics, coal and ores, iron and steel, vegetable oil and other commodities|
Main import partners
| China 11.1% (2013)
European Union 10.6%
Saudi Arabia 7.9%
United Arab Emirates 7.1%
|Inflows: $151.7 billion,
Outflows: $54.6 billion (2009-2013)
|66.7% of GDP (2013.)|
|4.8% of GDP (2012–13)|
|Revenues||$181.3 billion billion (2013 est.)|
|Expenses||$281.6 billion billion (2013 est.)|
|Economic aid||$1.66 billion (2012)|
BBB+ (T&C Assessment)
(Standard & Poor's)
|$314.66 billion (as of 5 December 2014)|
The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). The country is one of the G-20 major economies, a member of BRICS and a developing economy that is among the top 20 global traders according to the WTO. India was the 19th-largest merchandise and the 6th largest services exporter in the world in 2013; it imported a total of $616.7 billion worth of merchandise and services in 2013, as the 12th-largest merchandise and 7th largest services importer. India's economic growth slowed to 4.7% for the 2013–14 fiscal year, in contrast to higher economic growth rates in 2000s. The Indian Finance Ministry projects the GDP growth for fiscal 2014 will be 5.5%. IMF projects India's GDP to grow at 5.6% over 2014-15. Agriculture sector is the largest employer in India's economy but contributes a declining share of its GDP (13.7% in 2012-13). Its manufacturing industry has held a constant share of its economic contribution, while the fastest-growing part of the economy has been its services sector - which includes construction, telecom, software and information technologies, infrastructure, tourism, education, health care, travel, trade, banking and other components of its economy.
The post independence-era Indian economy (from 1947 to 1991) was a mixed economy with an inward-looking, centrally planned, interventionist policies and import-substituting economic model that failed to take advantage of the post-war expansion of trade and that nationalized many sectors of its economy. India's share of global trade fell from 1.3% in 1953 to 0.5% in 1983. This model contributed to widespread inefficiencies and corruption, and it was poorly implemented.
After a fiscal crisis in 1991, India has increasingly adopted free-market principles and liberalised its economy to international trade. These reforms were started by former Finance minister Manmohan Singh under the guidance of Prime Minister P.V.Narasimha Rao. They eliminated much of Licence Raj, a pre- and post-British era mechanism of strict government controls on setting up new industry. Following these economic reforms, and a strong focus on developing national infrastructure such as the Golden Quadrilateral project by former Prime Minister Atal Bihari Vajpayee, the country's economic growth progressed at a rapid pace, with relatively large increases in per-capita incomes. The south western state of Maharashtra contributes the highest towards India's GDP among all states, while Bihar is among its poorest states in terms of GNI per capita. Mumbai is known as the trade and financial capital of India.
- 1 Overview
- 2 History
- 3 GDP history of India after Independence
- 4 Sectors
- 5 External trade and investment
- 6 Currency
- 7 Income and consumption
- 8 Employment
- 9 Economic trends and issues
- 10 Insurance
- 11 Security Markets
- 12 See also
- 13 Notes
- 14 References
- 15 Further reading
- 16 External links
The combination of protectionist, import-substitution, and Fabian socialism, social democratic-inspired policies governed India for sometime after the end of British occupation. The economy was then characterised by extensive regulation, protectionism, public ownership of large monopolies, pervasive corruption and slow growth. Since 1991, continuing economic liberalisation has moved the country towards a market-based economy. By 2008, India had established itself as one of the world's faster-growing economies. Growth significantly slowed to 6.8% in 2008–09, but subsequently recovered to 7.4% in 2009–10, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period. India's current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 2012–13, according to Government of India's Labour Bureau, was 4.7% nationwide, by UPS method; and 3% by NSSO method. India's consumer price inflation has ranged between 8.9 to 12% over the 2009-2013 period.
Pre-colonial period (up to 1773)
The citizens of the Indus Valley civilisation, a permanent settlement that flourished between 2800 BC and 1800 BC, practiced agriculture, domesticated animals, used uniform weights and measures, made tools and weapons, and traded with other cities. Evidence of well-planned streets, a drainage system and water supply reveals their knowledge of urban planning, which included the world's first urban sanitation systems and the existence of a form of municipal government.
Maritime trade was carried out extensively between South India and southeast and West Asia from early times until around the fourteenth century AD. Both the Malabar and Coromandel Coasts were the sites of important trading centres from as early as the first century BC, used for import and export as well as transit points between the Mediterranean region and southeast Asia. Over time, traders organised themselves into associations which received state patronage. Raychaudhuri and Habib claim this state patronage for overseas trade came to an end by the thirteenth century AD, when it was largely taken over by the local Parsi, Jewish and Muslim communities, initially on the Malabar and subsequently on the Coromandel coast.
Other scholars suggest trading from India to West Asia and Eastern Europe was active between 14th and 18th century. During this period, Indian traders had settled in Surakhani, a suburb of greater Baku, Azerbaijan. These traders had built a Hindu temple, now preserved by the government of Azerbaijan. French Jesuit Villotte, who lived in Azerbaijan in late 1600s, wrote this Indian temple was revered by Hindus; the temple has numerous carvings in Sanskrit or Punjabi, dated to be between 1500 and 1745 AD. The Atashgah temple built by the Baku-resident traders from India suggests commerce was active and prosperous for Indians by the 17th century.
Further north, the Saurashtra and Bengal coasts played an important role in maritime trade, and the Gangetic plains and the Indus valley housed several centres of river-borne commerce. Most overland trade was carried out via the Khyber Pass connecting the Punjab region with Afghanistan and onward to the Middle East and Central Asia. Although many kingdoms and rulers issued coins, barter was prevalent. Villages paid a portion of their agricultural produce as revenue to the rulers, while their craftsmen received a part of the crops at harvest time for their services.
Sean Harkin estimates China and India may have accounted for 60 to 70 percent of world GDP in the 17th century.
Assessment of India's pre-colonial economy is mostly qualitative, owing to the lack of quantitative information. The Mughal economy functioned on an elaborate system of coined currency, land revenue and trade. Gold, silver and copper coins were issued by the royal mints which functioned on the basis of free coinage. The political stability and uniform revenue policy resulting from a centralised administration under the Mughals, coupled with a well-developed internal trade network, ensured that India, before the arrival of the British, was to a large extent economically unified, despite having a traditional agrarian economy characterised by a predominance of subsistence agriculture dependent on primitive technology. After the decline of the Mughals, western, central and parts of south and north India were integrated and administered by the Maratha Empire. After the loss at the Third Battle of Panipat, the Maratha Empire disintegrated into several confederate states, and the resulting political instability and armed conflict severely affected economic life in several parts of the country, although this was compensated for to some extent by localised prosperity in the new provincial kingdoms. By the end of the eighteenth century, the British East India Company entered the Indian political theatre and established its dominance over other European powers. This marked a determinative shift in India's trade, and a less powerful impact on the rest of the economy.
Colonial period (1773–1947)
There is no doubt that our grievances against the British Empire had a sound basis. As the painstaking statistical work of the Cambridge historian Angus Maddison has shown, India's share of world income collapsed from 22.6% in 1700, almost equal to Europe's share of 23.3% at that time, to as low as 3.8% in 1952. Indeed, at the beginning of the 20th century, "the brightest jewel in the British Crown" was the poorest country in the world in terms of per capita income.
Company rule in India brought a major change in the taxation and agricultural policies, which tended to promote commercialisation of agriculture with a focus on trade, resulting in decreased production of food crops, mass impoverishment and destitution of farmers, and in the short term, led to numerous famines. The economic policies of the British Raj caused a severe decline in the handicrafts and handloom sectors, due to reduced demand and dipping employment. After the removal of international restrictions by the Charter of 1813, Indian trade expanded substantially and over the long term showed an upward trend. The result was a significant transfer of capital from India to England, which, due to the colonial policies of the British, led to a massive drain of revenue rather than any systematic effort at modernisation of the domestic economy.
India's colonisation by the British created an institutional environment that, on paper, guaranteed property rights among the colonisers, encouraged free trade, and created a single currency with fixed exchange rates, standardised weights and measures and capital markets. It also established a system of railways and telegraphs, a civil service that aimed to be free from political interference, a common-law and an adversarial legal system. This coincided with major changes in the world economy – industrialisation, and significant growth in production and trade. However, at the end of colonial rule, India inherited an economy that was one of the poorest in the developing world, with industrial development stalled, agriculture unable to feed a rapidly growing population, a largely illiterate and unskilled labour force, and extremely inadequate infrastructure.
The 1872 census revealed that 91.3% of the population of the region constituting present-day India resided in villages, and urbanisation generally remained sluggish until the 1920s, due to the lack of industrialisation and absence of adequate transportation. Subsequently, the policy of discriminating protection (where certain important industries were given financial protection by the state), coupled with the Second World War, saw the development and dispersal of industries, encouraging rural-urban migration, and in particular the large port cities of Bombay, Calcutta and Madras grew rapidly. Despite this, only one-sixth of India's population lived in cities by 1951.
The impact of British occupation on India's economy is a controversial topic. Leaders of the Indian independence movement and economic historians have blamed colonial occupation for the dismal state of India's economy in its aftermath and argued that financial strength required for industrial development in Europe was derived from the wealth taken from colonies in Asia and Africa. At the same time, right-wing historians have countered that India's low economic performance was due to various sectors being in a state of growth and decline due to changes brought in by colonialism and a world that was moving towards industrialisation and economic integration.
Pre-liberalisation period (1947–1991)
Indian economic policy after independence was influenced by the colonial experience, which was seen by Indian leaders as exploitative, and by those leaders' exposure to British social democracy as well as the planned economy of the Soviet Union. Domestic policy tended towards protectionism, with a strong emphasis on import substitution industrialisation, economic interventionism, a large government run public sector, business regulation, and central planning, while trade and foreign investment policies were relatively liberal. Five-Year Plans of India resembled central planning in the Soviet Union. Steel, mining, machine tools, telecommunications, insurance, and power plants, among other industries, were effectively nationalised in the mid-1950s.
|“||Never talk to me about profit, Jeh, it is a dirty word.||”|
—Nehru, India's Fabian Socialism inspired first prime minister to industrialist J.R.D. Tata, when Tata suggested state-owned companies should be profitable, 
Jawaharlal Nehru, the first prime minister of India, along with the statistician Prasanta Chandra Mahalanobis, formulated and oversaw economic policy during the initial years of the country's independence. They expected favourable outcomes from their strategy, involving the rapid development of heavy industry by both public and private sectors, and based on direct and indirect state intervention, rather than the more extreme Soviet-style central command system. The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidising manual, low-skill cottage industries was criticised by economist Milton Friedman, who thought it would waste capital and labour, and retard the development of small manufacturers. The rate of growth of the Indian economy in the first three decades after independence was derisively referred to as the Hindu rate of growth by economists, because of the unfavourable comparison with growth rates in other Asian countries.
|“||(In the current Indian regulatory system, ) I cannot decide how much to borrow, what shares to issue, at what price, what wages and bonus to pay, and what dividend to give. I even need the government's permission for the salary I pay to a senior executive.||”|
Since 1965, the use of high-yielding varieties of seeds, increased fertilisers and improved irrigation facilities collectively contributed to the Green Revolution in India, which improved the condition of agriculture by increasing crop productivity, improving crop patterns and strengthening forward and backward linkages between agriculture and industry. However, it has also been criticised as an unsustainable effort, resulting in the growth of capitalistic farming, ignoring institutional reforms and widening income disparities.
Subsequently the Emergency and Garibi Hatao concept under which income tax levels at one point rose to a maximum of 97.5%, a record in the world for non-communist economies, started diluting the earlier efforts.
Post-liberalisation period (since 1991)
In the late 1970s, the government led by Morarji Desai eased restrictions on capacity expansion for incumbent companies, removed price controls, reduced corporate taxes and promoted the creation of small scale industries in large numbers. However, the subsequent government policy of Fabian socialism hampred the benefits of the economy, leading to high fiscal deficits and a worsening current account. The collapse of the Soviet Union, which was India's major trading partner, and the Gulf War, which caused a spike in oil prices, resulted in a major balance-of-payments crisis for India, which found itself facing the prospect of defaulting on its loans. India asked for a $1.8 billion bailout loan from the International Monetary Fund (IMF), which in return demanded de-regulation.
In response, Prime Minister Narasimha Rao, along with his finance minister Manmohan Singh, initiated the economic liberalisation of 1991. The reforms did away with the Licence Raj, reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors. Since then, the overall thrust of liberalisation has remained the same, although no government has tried to take on powerful lobbies such as trade unions and farmers, on contentious issues such as reforming labour laws and reducing agricultural subsidies. By the turn of the 21st century, India had progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased financial liberalisation. This has been accompanied by increases in life expectancy, literacy rates and food security, although urban residents have benefited more than agricultural residents.
While the credit rating of India was hit by its nuclear weapons tests in 1998, it has since been raised to investment level in 2003 by S&P and Moody's. India enjoyed high growth rates for a period from 2003 to 2007 with growth averaging 9% during this period. Growth then moderated due to the global financial crisis starting in 2008. In 2003, Goldman Sachs predicted that India's GDP in current prices would overtake France and Italy by 2020, Germany, UK and Russia by 2025 and Japan by 2035, making it the third largest economy of the world, behind the US and China. India is often seen by most economists as a rising economic superpower and is believed to play a major role in the global economy in the 21st century.
Starting in 2012, India entered a period of more anaemic growth, with growth slowing down to 4.4%. Other economic problems also became apparent: a plunging Indian rupee, a persistent high current account deficit and slow industrial growth. Hit by the U.S. Federal Reserve's decision to taper quantitative easing, foreign investors had been rapidly pulling out money from India though this has now reversed with the Stock market at near all time high and the current account deficit narrowing substantially.
India is ranked at 134 out of 189, overall, in World Bank's 2013 ease of doing business index. However, this score masks the underlying data: in terms of starting a business, dealing with bureaucratic permits and enforcing contracts, it is ranked among the 10 worst in the world; while in terms of protecting investors, general operations and other measures, India ranks very favorably among 189 countries.
GDP history of India after Independence
|Year||India's GDP at Current Prices(in crore rupees)||India's GDP at Current Prices in billion US $(Nominal GDP)||India's GDP at factor cost 2004-2005 prices||Real Growth rate %||Nominal Growth rate %|
Historically, India has classified and tracked its economy and GDP as three sectors - agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India's definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, health care, banking and insurance, and many other economic activities.
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP and employed 51% of the total workforce in 2012. As Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the largest employment source and a significant piece of the overall socio-economic development of India. Crop yield per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the Green Revolution in India. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world. Indian states Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Andhra Pradesh, Bihar, West Bengal, Gujarat and Maharashtra are key agricultural contributing states of India.
India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annual precipitation of 4000 billion cubic metres, with the total utilisable water resources, including surface and groundwater, amounting to 1123 billion cubic metres. 546,820 square kilometres (211,130 sq mi) of the land area, or about 39% of the total cultivated area, is irrigated. India's inland water resources including rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly six million people in the fisheries sector. In 2008, India had the world's third largest fishing industry.
India is the largest producer in the world of milk, jute and pulses, and also has the world's second largest cattle population with 175 million animals in 2008. It is the second largest producer of rice, wheat, sugarcane, cotton and groundnuts, as well as the second largest fruit and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production respectively. India is also the second largest producer and the largest consumer of silk in the world, producing 77,000 tons in 2005.
India exports several agriculture products, such as Basmati rice, wheat, cereals, spices, fresh fruits, dry fruits, buffalo beef meat, cotton, tea, coffee and other cash crops particularly to the Middle East, Southeast and East Asian countries. It earns about 10 percent of its export earnings from this trade.
Industry accounts for 26% of GDP and employs 22% of the total workforce. According to the World Bank, India's industrial manufacturing GDP output in 2012 was 10th largest in the world on current US dollar basis ($239.5 billion), and 9th largest on inflation adjusted constant 2005 US dollar basis ($197.1 billion). The Indian industrial sector underwent significant changes as a result of the economic liberalisation in India economic reforms of 1991, which removed import restrictions, brought in foreign competition, led to the privatisation of certain government owned public sector industries, liberalised the FDI regime, improved infrastructure and led to an expansion in the production of fast moving consumer goods. Post-liberalisation, the Indian private sector was faced with increasing domestic as well as foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced employment generation even by smaller manufacturers who earlier relied on relatively labour-intensive processes.
Petroleum products and chemicals
Petroleum products and chemicals are a major contributor to India's industrial GDP, and together they contribute over 34% of its export earnings. India hosts many oil refinery and petrochemical operations, including the world's largest refinery complex in Jamnagar that processes 1.24 million barrels of crude per day. By volume, Indian chemical industry was the third largest producer in Asia, and it alone contributed 5% of its GDP. India is one of the top 5 world producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals. Despite being a large producer and exporter of chemicals, India is a net importer of chemicals given its domestic demand for products.
The Indian pharmaceutical industry has grown in recent years to become a major manufacturer of health care products to the world. India produced about 8 per cent of global pharmaceutical supply in 2011 by value, that included over 60,000 generic brands of medicines sold around the world. It is one of the fastest-growing sub-sectors of its industry and significant contributor of India's export earnings. The state of Gujarat has become a hub for the manufacture and export of pharmaceuticals and APIs. The industry is expected to double from its 2012 levels to US$55 billion by 2020, according to a McKinsey report.
Engineering industry of India is the largest sub-sector of its industry GDP and is one of three largest foreign exchange earning sectors for the country. It includes transport equipment, machine tools, capital goods, transformers, switchgears, furnaces, cast and forged simple to precision parts for turbines, automobiles and railways. The industry employs about four million workers. On value added basis, India's engineering industry sector exported $67 billion worth of engineering goods in 2013-14 fiscal year, as well served part of the domestic demand for engineering goods.
The engineering industry of India includes its growing car, motorcycle and scooters industry, as well as productivity machinery such as tractors. India manufactured and assembled about 18 million passenger and utility vehicles in 2011, of which 2.3 million were exported. India is the world's largest producer of and the largest market for tractors, accounting for 29% of world's tractor production in 2013. India is the 12th largest producer and 7th largest consumer of machine tools in the world.
Gems and jewelry
India is one of the world's largest diamonds and gem polishing and jewelry manufacturing center; it is also one of the two largest consumers of gold. After crude oil and petroleum products, the export and import of gold, precious metals, precious stones, gems and jewelry accounts for the largest portion of India's global trade. The industry contributes about 7% of India's GDP, employs millions, and is a major source of its foreign exchange earnings. The gems and jewellery industry, in 2013, created 251000 crore (US$41 billion) in economic output on value added basis. It is growing sector of Indian economy, and A.T. Kearney projects it to grow to 500000 crore (US$81 billion) by 2018.
The gems and jewelry industry has been an ancient art and continuous economic activity in India, traced over several thousand years. Till 18th century, India was the world's only known major reliable source of diamond mining and its processing. Now, South Africa and Australia are the major sources of diamonds and precious metals, but along with Antwerp, New York, and Ramat Gan, Indian cities such as Surat and Mumbai are the hubs of world's jewelry polishing, cutting, precision finishing, supply and trade. Unlike other centers, the gems and jewelry economic activity in India is primarily artisans driven, is manual, the sector is highly fragmented, and 96% of the industry is served by family owned operations.
Indian gem and jewelry economy's particular strength is in precision cutting, polishing and processing small diamonds (below one carat). Yet, India is also a hub for processing of larger diamonds, pearls and other precious stones. About 11 out of 12 diamonds set in any jewellery in the world are cut and polished in India. It is also a major hub of gold and other precious metal-based precision jewelry industry. Its domestic demand for gold and jewelry products is another driver of India's GDP.
Textile industry contributes about 4 per cent to the country’s GDP, 14 per cent of the industrial production, and 17 per cent to export earnings. India's textile industry has transformed from a declining sector to a rapidly developing one in recent years. After freeing the industry in 2004–2005 from a number of limitations, primarily financial, the government gave a green light to massive investment inflows – both domestic and foreign. During the period from 2004 to 2008, total investment into textile sector increased by 27 billion dollars. Ludhiana produces 90% of woollens in India and is known as the Manchester of India. Tirupur has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear. Expanding textile centers such as Ichalkaranji enjoy one of the highest per capita incomes in the country. India's cotton farms, fiber and textile industry provides employment to 45 million people in India, including some child labour (1%). The sector is estimated to employ around 400,000 children under the age of 18.
India's mining industry was the 4th largest producer of minerals in the world by volume, and 8th largest producer by value in 2009. In 2013, it mined and processed 89 minerals, of which 4 were fuel, 3 were atomic energy minerals, and 80 non-fuel. The government owned public sector accounted for 68% of mineral produced by volume, in 2011-12.
Nearly 50% of India's mining industry, by output value, is concentrated in eight states - Odisha, Rajasthan, Chhattisgarh, Andhra Pradesh, Telangana, Jharkhand, Madhya Pradesh and Karnataka. Another 25% of the output by value comes from its offshore oil and gas resources. India operated about 3,000 mines in 2010, half of which were coal, limestone and iron ore. On output value basis, India's was one of five largest producers of mica, chromite, coal, lignite, iron ore, bauxite, barites, zinc, manganese; while being one of the 10 largest global producers of many other minerals. India was fourth largest producer of steel in the world in 2013, and seventh largest producer of aluminum.
India's mineral resources are vast. However, its mining industry has declined - contributing 2.3% of its GDP in 2010 compared to 3% in 2000, and employed 2.9 million people - a decreasing percentage of its total labor. India is a net importer of many minerals including coal. India's mining sector decline is because of complex permit, regulatory and administrative procedures that take 6 to 20 fold more time than other mining countries such as Australia and South Africa, inadequate infrastructure, shortage of capital resources, and slow adoption of ecologically and environmentally sustainable technologies.
India's services sector has the largest share in the GDP, accounting for 57% in 2012, up from 15% in 1950. It is the 12th largest in the world by nominal GDP, and fourth largest when purchasing power is taken into account. The services sector provides employment to 27% of the work force. Information technology and business process outsourcing are among the fastest-growing sectors, having a cumulative growth rate of revenue 33.6% between 1997 and 1998 and 2002–03 and contributing to 25% of the country's total exports in 2007–08. The growth in the IT sector is attributed to increased specialisation, and an availability of a large pool of low cost, highly skilled, educated and fluent English-speaking workers, on the supply side, matched on the demand side by increased demand from foreign consumers interested in India's service exports, or those looking to outsource their operations. The share of the Indian IT industry in the country's GDP increased from 4.8% in 2005–06 to 7% in 2008. In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world.
Energy and power
As of 2009, India is the fourth largest producer of electricity and oil products and the fourth largest importer of coal and crude-oil in the world. Coal and oil together account for 66% of the energy consumption of India.
India's oil reserves meet 25% of the country's domestic oil demand. As of 2012, India's total proven oil reserves of 5.5 million barrels (870 million litres), while gas reserves stood at 43,800 million cubic feet (1,240 million cubic metres). Oil and natural gas fields are located offshore at Mumbai High, Krishna Godavari Basin and the Cauvery Delta, and onshore mainly in the states of Assam, Gujarat and Rajasthan. India is the fourth largest consumer of oil in the world and imported 726386 crore (US$120 billion) worth of oil in 2011-12, which had an adverse effect on its current account deficit. The petroleum industry in India mostly consists of public sector companies such as Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in the oil sector such as Reliance Industries Limited (RIL) which operates the world's largest oil refining complex.
As of December 2011, India had an installed power generation capacity of 233.929 GW as of December 2013, of which thermal power contributed 68.31%, hydroelectricity 17.05%, other sources of renewable energy 12.59%, and nuclear power 2.04%. India meets most of its domestic energy demand through its 106 billion tonnes of coal reserves. India is also rich in certain alternative sources of energy with significant future potential such as solar, wind and biofuels (jatropha, sugarcane). India's dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years. Recent discoveries of natural uranium in Tummalapalle belt, which promises to be one of the top 20 of the world's reserves, and an estimated reserve of 846,477 metric tons (933,081 short tons) of thorium – about 25% of world's reserves – are expected to fuel the country's ambitious nuclear energy program in the long-run. The Indo-US nuclear deal has also paved the way for India to import uranium from other countries.
India's infrastructure and transport sector contributes about 5% of its GDP. India has the world's second largest road network in quantitative terms, covering more than 4.3 million kilometers. Qualitatively, India's roads are a mix of modern highways and narrow, unpaved roads. India also has the lowest kilometer lane road density per 100,000 people among G-27 countries - leading to traffic congestion. It is upgrading its infrastructure. As of May 2014, India had completed and placed in use over 22,600 kilometres of recently built 4 or 6-lane highways connecting most of its major manufacturing, commercial and cultural centers. India's road infrastructure carries 60% of freight and 87% of passenger traffic.
Indian Railways is the fourth largest rail network in the world, with a track length of 114,500 kilometers and 7,172 stations. This government owned and operated railway network carried an average of 23 million passengers a day, and over a billion tonnes of freight a year. India has a coastline of 7,500 kilometers with 13 major ports and 60 operational non-major ports, which together handle 95% of the country’s external trade by volume and 70% by value (rest handled by air). Nhava Sheva, Mumbai is the largest public port, while Mundra is the largest private sea port. The airport infrastructure of India includes 125 airports, of which 66 airports are licensed to handle both passengers and logistics.
About 74 people out of 100 have land or wireless telephones in India, or about 927 million telephone subscribers, two-thirds of them in urban areas. Internet use has been growing rapidly in India, with an estimated 243 million users in June 2014. This is projected to grow to 330–370 million users by 2016.
Retail industry contributes between 14–15% to 20% of India's GDP. The Indian retail market is estimated to be US$450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest-growing retail market in the world, and is projected to reach $1.3 trillion by 2020.
India's retailing industry mostly consists of the local mom and pop store, owner manned shops and street vendors. Organised retail supermarkets are growing but small, with a market share of 4% as of 2008. In 2012 government permitted 51% FDI in multi brand retail and 100% FDI in single brand retail. However, a lack of back end warehouse retail infrastructure, as well as state level permits and red tape continues to limit organized retail's growth in Indian economy. Over thirty regulations such as "signboard licences" and "anti-hoarding measures" have to be complied before a store can open doors. There are taxes for moving goods from state to state, and even within states. The lack of infrastructure and efficient retail network, according to The Wall Street Journal, causes a third of India's agriculture produce to be lost from spoilage.
International and domestic tourism industry contributes more to India's GDP than its textile sector. India attracted 6.85 million international tourist arrivals and $18.4 billion in foreign exchange earnings from tourism receipts in 2013. Tourism to India has seen a steady growth, year on year, from 4.45 million arrivals in 2006 to nearly 7 million arrivals in 2013. The United States is the largest source of international tourists to India, while European Union nations and Japan are other major sources of international tourists. Less than 10% of international tourists visit the Taj Mahal, with majority visiting other cultural, thematic and holiday circuits. Over 12 million Indian citizens take international trips each year for tourism, while domestic tourism within India adds about 740 million Indian travelers. The combined international and domestic tourism contributed 5.92% of India's GDP, and 9.3% to its employment in 2011. India has a fast-growing medical tourism sector of its health care economy offering low cost health and long term care.
Banking and finance
The Indian money market is classified into the organised sector, comprising private, public and foreign owned commercial banks and cooperative banks, together known as scheduled banks, and the unorganised sector, which includes individual or family owned indigenous bankers or money lenders and non-banking financial companies. The unorganised sector and microcredit are still preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes, like ceremonies and short duration loans.
Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure that the banks fulfill their social and developmental goals. Since then, the number of bank branches has increased from 8,260 in 1969 to 72,170 in 2007 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The total bank deposits increased from 59.1 billion (US$960 million) in 1970–71 to 38309.22 billion (US$620 billion) in 2008–09. Despite an increase of rural branches, from 1,860 or 22% of the total number of branches in 1969 to 30,590 or 42% in 2007, only 32,270 out of 500,000 villages are covered by a scheduled bank.
India's gross domestic saving in 2006–07 as a percentage of GDP stood at a high 32.8%. More than half of personal savings are invested in physical assets such as land, houses, cattle, and gold. The government owned public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. Since liberalisation, the government has approved significant banking reforms. While some of these relate to nationalised banks, like encouraging mergers, reducing government interference and increasing profitability and competitiveness, other reforms have opened up the banking and insurance sectors to private and foreign players.
External trade and investment
Global trade relations
Until the liberalisation of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, while foreign direct investment (FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals; these approvals were needed for nearly 60% of new FDI in the industrial sector. The restrictions ensured that FDI averaged only around $200 million annually between 1985 and 1991; a large percentage of the capital flows consisted of foreign aid, commercial borrowing and deposits of non-resident Indians. India's exports were stagnant for the first 15 years after independence, due to general neglect of trade policy by the government of that period. Imports in the same period, due to industrialisation being nascent, consisted predominantly of machinery, raw materials and consumer goods.
Since liberalisation, the value of India's international trade has increased sharply, with the contribution of total trade in goods and services to the GDP rising from 16% in 1990–91 to 47% in 2008–10. India accounts for 1.44% of exports and 2.12% of imports for merchandise trade and 3.34% of exports and 3.31% of imports for commercial services trade worldwide. India's major trading partners are the European Union, China, the United States of America and the United Arab Emirates. In 2006–07, major export commodities included engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals. Major import commodities included crude oil and related products, machinery, electronic goods, gold and silver. In November 2010, exports increased 22.3% year-on-year to 850.63 billion (US$14 billion), while imports were up 7.5% at 1251.33 billion (US$20 billion). Trade deficit for the same month dropped from 468.65 billion (US$7.6 billion) in 2009 to 400.7 billion (US$6.5 billion) in 2010.
India is a founding-member of General Agreement on Tariffs and Trade (GATT) since 1947 and its successor, the WTO. While participating actively in its general council meetings, India has been crucial in voicing the concerns of the developing world. For instance, India has continued its opposition to the inclusion of such matters as labour and environment issues and other non-tariff barriers to trade into the WTO policies.
Balance of payments
Since independence, India's balance of payments on its current account has been negative. Since economic liberalisation in the 1990s, precipitated by a balance of payment crisis, India's exports rose consistently, covering 80.3% of its imports in 2002–03, up from 66.2% in 1990–91. However, the global economic slump followed by a general deceleration in world trade saw the exports as a percentage of imports drop to 61.4% in 2008–09. India's growing oil import bill is seen as the main driver behind the large current account deficit, which rose to $118.7 billion, or 11.11% of GDP, in 2008–09. Between January and October 2010, India imported $82.1 billion worth of crude oil.
Indian economy has run a trade deficit every year over 2002-2012 period, with a merchandise trade deficit of US$189 billion in 2011-12. Its trade with China has the largest deficit, about $31 billion in 2013.
India's reliance on external assistance and concessional debt has decreased since liberalisation of the economy, and the debt service ratio decreased from 35.3% in 1990–91 to 4.4% in 2008–09. In India, External Commercial Borrowings (ECBs), or commercial loans from non-resident lenders, are being permitted by the Government for providing an additional source of funds to Indian corporates. The Ministry of Finance monitors and regulates them through ECB policy guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act of 1999. India's foreign exchange reserves have steadily risen from $5.8 billion in March 1991 to $318.6 billion in December 2009.  In 2012, the United Kingdom announced an end to all financial aid to India, citing the growth and robustness of Indian economy.
Foreign direct investment
See also Foreign direct investment, India section.
- Into India
As the third-largest economy in the world in PPP terms, India has attracted foreign direct investment; During the year 2011, FDI inflow into India stood at $36.5 billion, 51.1% higher than 2010 figure of $24.15 billion. India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI  policies were a significant hindrance. Over time, India has adopted a number of FDI reforms. India has a large pool of skilled managerial and technical expertise. The size of the middle-class population stands at 300 million and represents a growing consumer market.
India's liberalised its FDI policy in 2005, allowing up to a 100% FDI stake in ventures. Industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI. The upward moving growth curve of the real-estate sector owes some credit to a booming economy and liberalised FDI regime. In March 2005, the government amended the rules to allow 100% FDI in the construction sector, including built-up infrastructure and construction development projects comprising housing, commercial premises, hospitals, educational institutions, recreational facilities, and city- and regional-level infrastructure. Over 2012-14, India extended these reforms to defense, telecom, oil, retail, aviation and a number of other sectors.
During 2000–10, the country attracted $178 billion as FDI. The inordinately high investment from Mauritius is due to routing of international funds through the country given significant tax advantages; double taxation is avoided due to a tax treaty between India and Mauritius, and Mauritius is a capital gains tax haven, effectively creating a zero-taxation FDI channel.
- From India
Since 2000, Indian companies have expanded overseas, investing FDI and creating jobs outside India. Over the 2006-2010 period, FDI by Indian companies outside India amounted to 1.34 per cent of its GDP. Indian companies have deployed FDI and started operations in the United States, while others have expanded in Europe and Africa. The Indian company Tata is United Kingdom's largest manufacturer and private sector employer.
|Year||Indian₹ per US$
The Indian rupee () is the only legal tender in India, and is also accepted as legal tender in the neighbouring Nepal and Bhutan, both of which peg their currency to that of the Indian rupee. The rupee is divided into 100 paise. The highest-denomination banknote is the 1,000 note; the lowest-denomination coin in circulation is the 50 paise coin; with effect from 30 June 2011 all denominations below 50 paise have ceased to be legal currency. India's monetary system is managed by the Reserve Bank of India (RBI), the country's central bank. Established on 1 April 1935 and nationalised in 1949, the RBI serves as the nation's monetary authority, regulator and supervisor of the monetary system, banker to the government, custodian of foreign exchange reserves, and as an issuer of currency. It is governed by a central board of directors, headed by a governor who is appointed by the Government of India.
The rupee was linked to the British pound from 1927 to 1946 and then the U.S. dollar till 1975 through a fixed exchange rate. It was devalued in September 1975 and the system of fixed par rate was replaced with a basket of four major international currencies – the British pound, the U.S. dollar, the Japanese yen and the Deutsche mark. In 1991, after the collapse of its largest trading partner Soviet Union, India faced the major foreign exchange crisis and the rupee was devalued by around 19% in two stages on 1 and 2 July. In 1992 a Liberalized Exchange Rate Mechanism – LERMS- was introduced. Under LERMS exporters had to surrender 40 percent of their foreign exchange earnings to the RBI at the RBI determined exchange rate. The balance 60% was allowed to be converted at the market determined exchange rate. In 1994 the rupee was convertible on the current account, with some capital controls.
After the sharp devaluation in 1991 and transition to current account convertibility in 1994, the value of the rupee is largely determined by the market forces. The rupee has been fairly stable during the decade 2000 to 2010. In September 2013, the rupee touched an all time low 68.27 to the U.S. dollar.
Income and consumption
India's gross national income per capita had experienced high growth rates since 2002. India's Per Capita Income has tripled from Rs. 19,040 in 2002–03 to Rs. 53,331 in 2010–11, averaging 13.7% growth over these eight years peaking 15.6% in 2010–11. However growth in the inflation adjusted Per capita income of the nation slowed to 5.6% in 2010–11, down from 6.4% in the previous year. These consumption levels are on an individual basis, not household. On a household basis, the average income in India was $6,671 per household in 2011.
Per 2011 census, India has about 330 million houses and 247 million households. The household size in India has dropped in recent years, with 2011 census reporting 50% of households have 4 or less members. The average per 2011 census was 4.8 members per household, and included surviving grandparents. These households produced a GDP of about $1.7 Trillion. The household consumption patterns per 2011 census: approximately 67% of households use firewood, crop residue or cow dung cakes for cooking purposes; 53% do not have sanitation or drainage facilities on premises; 83% have water supply within their premises or 100 metres from their house in urban areas and 500 metres from the house in rural areas; 67% of the households have access to electricity; 63% of households have landline or mobile telephone connection; 43% have a television; 26% have either a two wheel (motorcycle) or four wheel (car) vehicle. Compared to 2001, these income and consumption trends represent moderate to significant improvements. One report in 2010 claimed that the number of high income households has crossed lower income households.
The World Bank in 2010, using its older 2005 methodology, estimated about 400 million people in India, as compared to 1.29 billion people worldwide, live on less than $1.25 (PPP) per day. The World Bank reviewed and proposed revisions in May 2014, to its poverty calculation methodology and purchasing power parity basis for measuring poverty worldwide, including India. According to this revised methodology, the world had 872.3 million people below the new poverty line, of which 179.6 million people lived in India. In other words, India with 17.5% of total world's population, had 20.6% share of world's poorest in 2013. According to a 2005-2006 survey, India had about 61 million children under the age of 5 who were chronically malnourished. A 2011 UNICEF report stated that that between 1990 to 2010, India achieved a 45 percent reduction in under age 5 mortality rates, and now ranks 46 in 188 countries on this metric.
Since the early 1950s, successive governments have implemented various schemes to alleviate poverty, under central planning, that have met with partial success. In 2005, Indian government enacted the Mahatma Gandhi National Rural Employment Guarantee Act, guaranteeing 100 days of minimum wage employment to every rural household in all the districts of India. In 2011, this Rural Employment Guarantee programme was widely criticised as no more effective than other poverty reduction programs in India. Despite its best intentions, MGNREGA is beset with controversy about corrupt officials, deficit financing as the source of funds, poor quality of infrastructure built under this program, and unintended destructive effect on poverty. Other studies suggest that the Rural Employment Guarantee welfare program has helped in reducing rural poverty in some cases. Yet other studies report that India's economic growth has been the driver of sustainable employment and poverty reduction, but a sizable population remains in poverty.
Agricultural and allied sectors accounted for about 52.1% of the total workforce in 2009–10. While agriculture employment has fallen over time in percentage of labor employed, services which includes construction and infrastructure have seen a steady growth accounting for 20.3% of employment in 2012-13. Of the total workforce, 7% is in the organised sector, two-thirds of which are in the government controlled public sector. About 51.2% of the labor in India is self-employed. According to 2005-06 survey, there is a gender gap in employment and salaries. In rural areas, both men and women are primarily self-employed, mostly in agriculture. In urban areas, salaried work was the largest source of employment for both men and women in 2006.
Unemployment in India is characterised by chronic (disguised) unemployment. Government schemes that target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem, by providing financial assistance for setting up businesses, skill honing, setting up public sector enterprises, reservations in governments, etc. The decline in organised employment due to the decreased role of the public sector after liberalisation has further underlined the need for focusing on better education and has also put political pressure on further reforms. India's labour regulations are heavy even by developing country standards and analysts have urged the government to abolish or modify them in order to make the environment more conducive for employment generation. The 11th five-year plan has also identified the need for a congenial environment to be created for employment generation, by reducing the number of permissions and other bureaucratic clearances required. Further, inequalities and inadequacies in the education system have been identified as an obstacle preventing the benefits of increased employment opportunities from reaching all sectors of society.
Child labour in India is a complex problem that is basically rooted in poverty. The Indian government has implemented, since the 1990s, a variety of programs to eliminate child labor. These have included setting up schools, launching free school lunch program, setting up special investigation cells and others. Desai et al. state that recent studies on child labour in India have found some pockets of industries in which children are employed, but overall, relatively few Indian children are employed. Child labor below the age of 10 is now rare. In the 10-14 group, the latest surveys find only 2% of children working for wage, while another 9% work within their home or rural farms assisting their parents in times of high work demand such as sowing and harvesting of crops.
India has the second largest diaspora around the world, an estimated 25 million people, many of whom work overseas and remit funds back to their families. The Middle East region is the largest source of employment of expat Indians. The crude oil production and infrastructure industry of Saudi Arabia employs over 2 million expat Indians. Cities such as Dubai and Abu Dhabi in United Arab Emirates alone have employed another 2 million Indian construction workers during its construction boom in recent decades. In 2009–10, remittances from Indian migrants overseas stood at 2500 billion (US$41 billion), the highest in the world, but their share in FDI remained low at around 1%.
Economic trends and issues
With 1.2 billion people and the world’s fourth-largest economy, India’s recent growth and development has been one of the most significant achievements of our times. Over the six and half decades since independence, the country has brought about a landmark agricultural revolution that has transformed the nation from chronic dependence on grain imports into a global agricultural powerhouse that is now a net exporter of food. Life expectancy has more than doubled, literacy rates have quadrupled, health conditions have improved. India will soon have the largest and youngest workforce the world has ever seen. At the same time, the country is in the midst of a massive wave of urbanization as some 10 million people move to towns and cities each year in search of jobs and opportunity. It is the largest rural-urban migration of this century. Massive investments will be needed to create the jobs, housing, and infrastructure to meet soaring aspirations and make towns and cities more livable and green.
— World Bank: "India Country Overview 2013"
Agriculture is an important part of Indian economy. In 2008, a New York Times article claimed, with the right technology and policies, India could contribute to feeding not just itself but the world. However, agricultural output of India lags far behind its potential. The low productivity in India is a result of several factors. According to the World Bank, India's large agricultural subsidies are distorting what farmers grow and they are hampering productivity-enhancing investment. While overregulation of agriculture has increased costs, price risks and uncertainty, governmental intervention in labour, land, and credit markets are hurting the market. Infrastructure such as rural roads, electricity, ports, food storage, retail markets and services are inadequate. Further, the average size of land holdings is very small, with 70% of holdings being less than one hectare in size. Irrigation facilities are inadequate, as revealed by the fact that only 39% of the total cultivable land was irrigated as of 2010, resulting in farmers still being dependent on rainfall, specifically the monsoon season, which is often inconsistent and unevenly distributed across the country. Farmer incomes are low also in part because of lack of food storage and distribution infrastructure. A third of India's agriculture produce is lost from spoilage.
Corruption has been one of the pervasive problems affecting India. A 2005 study by Transparency International (TI) found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get a job done in a public office in the previous year. A follow-on 2008 TI study found this rate to be 40 percent. In 2011, Transparency International ranked India at 95th place amongst 183 countries in perceived levels of public sector corruption.
In 1996, red tape, bureaucracy and the Licence Raj were suggested as a cause for the institutionalised corruption and inefficiency. More recent reports suggest the causes of corruption in India include excessive regulations and approval requirements, mandated spending programs, monopoly of certain goods and service providers by government controlled institutions, bureaucracy with discretionary powers, and lack of transparent laws and processes.
The Right to Information Act (2005) which requires government officials to furnish information requested by citizens or face punitive action, computerisation of services, and various central and state government acts that established vigilance commissions, have considerably reduced corruption and opened up avenues to redress grievances.
In 2011, the Indian government concluded that most spending fails to reach its intended recipients. A large, cumbersome and tumor-like bureaucracy sponges up or siphons off spending budgets. India's absence rates are one of the worst in the world; one study found that 25% of public sector teachers and 40% of government owned public sector medical workers could not be found at the workplace. Similarly, there are many issues facing Indian scientists, with demands for transparency, a meritocratic system, and an overhaul of the bureaucratic agencies that oversee science and technology.
The Indian economy has an underground economy, with a 2006 report alleging that the Swiss Bankers Association suggested 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. These allegations have been denied by Swiss Banking Association. James Nason, the Head of International Communications for Swiss Banking Association, suggests "The (black money) figures were rapidly picked up in the Indian media and in Indian opposition circles, and circulated as gospel truth. However, this story was a complete fabrication. The Swiss Bankers Association never published such a report. Anyone claiming to have such figures (for India) should be forced to identify their source and explain the methodology used to produce them."
India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately three-fourths of the population. India's literacy rate had grown from 52.2% in 1991 to 74.04% in 2011. The right to education at elementary level has been made one of the fundamental rights under the eighty-sixth Amendment of 2002, and legislation has been enacted to further the objective of providing free education to all children. However, the literacy rate of 74% is still lower than the worldwide average and the country suffers from a high dropout rate. Further, the literacy rates and educational opportunities vary by region, gender, urban and rural areas, and among different social groups.
Poverty rates in India’s poorest states are three to four times higher than those in the more advanced states. While India’s average annual per capita income was $1,410 in 2011 – placing it among the poorest of the world’s middle-income countries – it was just $436 in Uttar Pradesh (which has more people than Brazil) and only $294 in Bihar, one of India’s poorest states.
— World Bank: India Country Overview 2013
A critical problem facing India's economy is the sharp and growing regional variations among India's different states and territories in terms of poverty, availability of infrastructure and socio-economic development. Six low-income states – Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh – are home to more than one-third of India's population. Severe disparities exist among states in terms of income, literacy rates, life expectancy and living conditions.
The five-year plans, especially in the pre-liberalisation era, attempted to reduce regional disparities by encouraging industrial development in the interior regions and distributing industries across states, but the results have not been very encouraging since these measures in fact increased inefficiency and hampered effective industrial growth. After liberalisation, the more advanced states have been better placed to benefit from them, with well-developed infrastructure and an educated and skilled workforce, which attract the manufacturing and service sectors. The governments of backward regions are trying to reduce disparities by offering tax holidays and cheap land, and focusing more on sectors like tourism which, although being geographically and historically determined, can become a source of growth and develops faster than other sectors. India's income Gini coefficient is 33.9, according to The World Bank, indicating overall income distribution to be more uniform than East Asia, Latin America and Africa that have higher Gini coefficients.
There is a continuing debate on whether India's economic expansion has been pro-poor or anti-poor. Studies suggest that the economic growth has been pro-poor and has reduced poverty in India.
India became the 10th largest insurance market in the world in 2013, rising from 15th rank in 2011. At a total market size of US$66.4 billion in 2013, it remains small compared to world's major economies, and Indian insurance market accounts for 2% of world's annual insurance business. India's life and non-life insurance industry has been growing at double digit growth rates and this growth is expected to continue through 2021.
- Life Insurance
Indian economy retains about 360 million active life insurance policies, the largest in the world. Of the 52 insurance companies in India, 24 are active in life insurance business. The life insurance industry in the country is projected to increase at double digit compounded annual growth rates through 2019, with targets to reach US$1 trillion annual notional values by 2021.
- Other Insurance
The industry which reported a growth rate of around 10 percent during the period 1996–97 to 2000–10 has, post opening up the sector, reported average annual growth of 15.85% over the period 2001–02 to 2010–11. In addition, the specialized insurers Export Credit Guarantee Corporation and Agriculture Insurance Company (AIC) are offering credit guarantee and corp insurance respectively. AIC, which has initially offering coverage under the National Agriculture Insurance Company (NAIS), has now started providing crop insurance cover on commercial line as well. It has introduced several innovative products such as weather insurance and specific crop related products. The premium underwritten by the non life insurers during 2010–11 was Rs 42,576 crore as against Rs 34,620 crore in 2009–10. The growth was satisfactory, particularly in the view of the across the broad cuts in the tariff rates. The private insurers underwrote premium of Rs 17,424 crore as against rs Rs 13,977 crore in 2009–10. The public sector insurers on the other hand, underwrote a premium of Rs 25,151.8 in 2010–11 as against Rs 20,643.5 crore in 2009–10, i.e. a growth of 21.8% as against 14.5% in 2009–10.
- Market Penetration
The Indian insurance business has in the past remained under developed with low levels of insurance penetration. Post liberalization sector has succeeded in raising the levels of insurance penetration from 2.3 (life 1.8 and non life 0.7) in 2000 to 5.1 (life 4.4 and non life 0.7) in 2010.
The development of Indian security markets began with launch of Bombay Stock Exchange (BSE), Mumbai in July 1875 and Ahmedabad Stock exchange in 1894 and 22 other exchange in various cities over the years. In 2014, India's stock exchange market became the 10th largest in the world by market capitalization, just above those of South Korea and Australia. India's two major stock exchanges, BSE and National Stock Exchange of India, had a market capitalization of US$1.4997 trillion and US$1.4722 trillion respectively as of June 2014, according to World Federation of Exchanges.
The Initial Public Offering (IPO) market in India has been small compared to NYSE and NASDAQ, raising US$300 million in 2013 and US$1.4 billion in 2012. Ernst and Young states that the low IPO activity reflects market conditions as well as slow government approval process and complex regulations. Before 2013, Indian companies were not allowed to list their securities internationally without first completing an IPO in India. In 2013, these security laws were reformed and Indian companies can now choose where they want to list first - overseas, domestically, or concurrently. Further, security laws have been revised to ease overseas listings of already listed companies, to increase liquidity for private equity and international investors in Indian companies.
- List of companies of India
- List of the largest trading partners of India
- Income in India
- Trade unions in India
- Economic history of India
- Minerals in India
- "Information About Maharashtra, Industries, Economy, Exports of Maharashtra". ibef.org. Retrieved 2014-04-12.
- SUDALAIMUTHU, S.; RAJ, S.A. (2009). Logistics Management for International Business: Text and Cases. PHI Learning. ISBN 9788120337923.
- "Report for Selected Countries and Subjects". World Economic Outlook Database, International Monetary Fund. October 2014. Retrieved 8 October 2014.
- "Mid-Year Economic Analysis 2014-2015, The Indian Finance Ministry". 2014-12-19. Retrieved 19 December 2014.
- "Mid-Year Economic Analysis 2014-2015, The Indian Finance Ministry". 2014-12-19. Retrieved 19 December 2014.
- Agriculture's share in GDP declines to 13.7% in 2012-13 The Economic Times ppppppp
- India's Fiscal Budget 2012-13 Chapter 10, Government of India (February 2014)
- . The Economics Times. 15 Dec 2014 http://m.economictimes.com/news/economy/indicators/november-wpi-inflation-plunges-sharply-to-0-0-versus-1-77-in-october/articleshow/45519845.cms. Retrieved 2014-12-15. Missing or empty
- "30% of India is poor, says Rangarajan panel's new poverty line formula". The First Post. 7 July 2014. Retrieved 2014-07-07.
- "India has 100 million more poor: C Rangarajan Committee". The Economic Times. 7 July 2014. Retrieved 2014-07-07.
- "Number and Percentage of Population Below Poverty Line (see 3rd of 3 tables)". Reserve Bank of India. 2012. Retrieved 17 July 2014.
- Shawn Donnan, World Bank eyes biggest global poverty line increase in decades The Financial Times (9 May 2014)
- Chandy and Kharas, What Do New Price Data Mean for the Goal of Ending Extreme Poverty? Brookings Institute, Washington D.C. (May 2014)
- GINI index World Bank (2009-2012)
- "Report on Employment & Unemployment Survey (2012–13)". Bureau of Labour Statistics, Indian Government. January 2014. Retrieved 2014-07-25.
- ND Shiva Kumar (23 June 2013). "Unemployment rate increases in India". The Times of India. Retrieved 23 May 2014.
- International Labor Comparisons - India Average Salary Tables, Bureau of Labor Statistics, US Government (2012)
- GNI per capita, Atlas method (current US$) World Bank (2014)
- Table 3.4, World Consumer Income and Expenditure Patterns - Annual Household Income Euro Monitor International (2013), pp 45
- GDP of India and major Sectors of Economy Government of India (2013)
- Foreign Trade Performance of India Annual Report Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry, Government of India (2012)
- "Doing Business in India 2014". World Bank. Retrieved 2011-11-21.
- Trade Profile - India World Trade Organization (2013)
- India's definition of engineering goods includes metal products, industrial machinery and equipment, auto and its components, and transport equipment
- World Investment Report 2014 UNCTAD - United Nations Conference on Trade and Development (February 2014), page 206
- World Economic Outlook Database, October 2012
- India 2014 Article IV Consultation - Country Report 14/57 International Monetary Fund, page 6 (February 2014)
- "Net official development assistance received (current US$)". World Bank. Retrieved 20 October 2014.
- "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
- "Forex reserves dip $1.65 billion, biggest weekly fall in 2 months". The Financial Express. 12 December 2014. Retrieved 17 December 2014.
- "India". International Monetary Fund. Retrieved 2014-04-08.
- World Trade Organization, World Trade Report 2013, Geneva, ISBN 978-92-870-3859-3
- Modest trade growth anticipated for 2014 and 2015 following two year slump World Trade Organization (14 April 2014)
- RBI governor Raghuram Rajan meets Narendra Modi LiveMint (1 June 2014)
- "Mid-Year Economic Analysis 2014-2015, The Indian Finance Ministry". 2014-12-19. Retrieved 19 December 2014.
- "IMF projects India's GDP to pick up in 2015 to 6.4 per cent". The Economic Times. 8 October 2014. Retrieved 23 October 2014.
- The India Model, by Das, Gurcharan. 1936. Foreign Affairs, Vol. 85, No. 4 (Jul.–Aug. 2006), p. 4: "Father and daughter shackled the energies of the Indian people under a mixed economy that combined the worst features of capitalism and socialism. Their model was inward-looking and import—substituting rather than an outward-looking and export-promoting, and it denied India a share in the prosperity that a massive expansion in global trade brought in the post-World War II era."
- List of Tables, World Trade, WTO Geneva, pp 22-23
- The India Model, by Das, Gurcharan. 1936. Foreign Affairs, Vol. 85, No. 4 (Jul.–Aug. 2006), p. 4: "But even this system could have delivered more had it been better implemented. It did not have to degenerate into a 'license-permit-quota raj'... "
- "India's surprising economic miracle". The Economist. 30 September 2010. Retrieved 2010-09-30.
- "Maharashtra » Maharashtra Economic Development Council". medcindia.com. Retrieved 2014-04-12.
- "Economic survey of India 2007: Policy Brief" (PDF). OECD. Retrieved 2009-06-21.
- ref name="potential">"India's Rising Growth Potential" (PDF). Goldman Sachs. 2007. Retrieved 2009-06-21.
- Economic Survey 2010, pp. 1–2.
- Inflation, consumer prices (annual %) The World Bank (2014)
- Nehru, Jawaharlal (1946). The Discovery of India. Penguin Books. ISBN 0-14-303103-1.
- Donkin, Robin A. (August 2003). Between East and West: The Moluccas and the Traffic in Spices Up to the Arrival of Europeans. Diane Publishing Company. ISBN 0-87169-248-1.
- Raychaudhuri & Habib 2004, pp. 17–18
- Raychaudhuri & Habib 2004, pp. 40–41
- Jonas Hanway (1753), An Historical Account of the British Trade Over the Caspian Sea, Sold by Mr. Dodsley,
... The Persians have very little maritime strength ... their ship carpenters on the Caspian were mostly Indians ... there is a little temple, in which the Indians now worship
- Stephen Frederic Dale (2002), Indian Merchants and Eurasian Trade, 1600–1750, Cambridge University Press, ISBN 0-521-52597-7,
... The Russian merchant, F.A. Kotov ... saw in Isfahan in 1623, both Hindus and Muslims, as Multanis.
- Scott Cameron Levi (2002), The Indian diaspora in Central Asia and its trade, 1550–1900, BRILL, ISBN 90-04-12320-2,
... George Forster ... On the 31st of March, I visited the Atashghah, or place of fire; and on making myself known to the Hindoo mendicants, who resided there, I was received among these sons of Brihma as a brother
- J. Villotte (1730). Voyage d'un missionnaire de la Compagnie de Jésus en Turquie, en Perse, en Arménie, en Arabie et en Barbarie, Paris.
- Abraham Valentine Williams Jackson (1911), From Constantinople to the home of Omar Khayyam: travels in Transcaucasia and northern Persia for historic and literary research, The Macmillan company
- George Forster (1798), A journey from Bengal to England: through the northern part of India, Kashmire, Afghanistan, and Persia, and into Russia, by the Caspian-Sea, R. Faulder,
... A society of Moultan Hindoos, which has long been established in Baku, contributes largely to the circulation of its commerce; and with the Armenians they may be accounted the principal merchants of Shirwan ...
- James Justinian Morier (1818), A Second Journey through Persia, Armenia, and Asia Minor, to Constantinople, between the Years 1810 and 1816, A. Strahan
- United States Bureau of Foreign Commerce (1887), Reports from the consuls of the United States, 1887, United States Government,
... Six or 7 miles southeast is Surakhani, the location of a very ancient monastery of the fire-worshippers of India ...
- Raychaudhuri & Habib 2004, pp. 10–13
- Datt & Sundharam 2009, p. 14
- Sean Harkin (19 April 2012). "Will China really dominate". World Finance.
- Raychaudhuri & Habib 2004, pp. 360–361
- Kumar 2005, p. 3
- Kumar 2005, pp. 5–8
- Kumar 2005, p. 26
- "Of Oxford, economics, empire, and freedom". The Hindu (Chennai). 2 October 2005. Retrieved 2010-12-06.
- Roy 2006, pp. 158–160
- Kumar 2005, pp. 538–540
- Kumar 2005, pp. 826–827
- Kumar 2005, pp. 876–877
- Maddison A (2007), Contours of the World Economy I-2030AD, Oxford University Press, ISBN 978-0199227204. The data tables from this book are available online here
- Kumar 2005, p. 422
- Roy 2006, pp. 291–292
- Roy 2006, p. 1
- Datt & Sundharam 2009, p. 179
- Kumar 2005, p. 519
- Kumar 2005, pp. 520–521
- Roy 2006, pp. 22–24
- Panagariya 2008, pp. 31–32
- Panagariya 2008, p. 24
- Sam Staley (2006). "The Rise and Fall of Indian Socialism: Why India embraced economic reform". Reason. Retrieved 2011-01-17.
- Gurcharan Das (2002). India Unbound. Anchor Books. pp. 167–174. ISBN 978-0-385-72074-8.
- Datt & Sundharam 2009, pp. 185–187
- Cameron, John; Ndhlovu, P Tidings (September 2001). "Cultural Influences on Economic Thought in India: Resistance to diffusion of neo-classical economics and the principles of Hinduism" (PDF). Economic Issues 6 (2). Archived from the original on 23 August 2006. Retrieved 2011-01-17.
- Subroto Roy (22 September 1998). "Milton Friedman on the Nehru/Mahalanobis Plan". India Policy Institute. Retrieved 2005-07-16.
- Panagariya 2008, pp. 6–7
- Salil Tripathi (13 June 2006). "Escaping the 'Hindu rate of growth'". The Guardian (London). Retrieved 2010-11-25.
- Datt & Sundharam 2009, pp. 504–506
- Datt & Sundharam 2009, p. 507
- Ghosh, Arunabha (1 June 2004). "India's pathway through economic crisis(which makes failer of mixed economy)" (PDF). GEG Working Paper 2004/06. Global Economic Governance Programme. Retrieved 2009-12-12.
- Task Force Report 2006, p. 7.
- Task Force Report 2006, pp. 7–8.
- "That old Gandhi magic". The Economist. 27 November 1997. Retrieved 2011-01-17.
- Kumar 2005, p. 1037
- Task Force Report 2006, pp. 17–20.
- S. Venkitaramanan (10 February 2003). "Moody's upgrade — Uplifts the mood but raises questions". Business Line. Retrieved 2011-01-17.
- Wilson, Dominic; Purushothaman, Roopa (1 October 2003). "DreamingWith BRICs: The Path to 2050" (PDF). Global economics paper No. 99. Goldman Sachs. Retrieved 2007-10-04.
- Grammaticas, Damian (24 January 2007). "Indian economy 'to overtake UK'". BBC News. Retrieved 2007-01-26.
- GDP growth in 2012-13 worse than expected LiveMint and The Wall Street Journal (31 January 2014)
- Ease of Doing Business Indices, World Bank (June 2013)
- Employment across various sectors, NSSO 66th Nationwide Survey, Planning Commission, Government of India (June 3, 2014), pp 116
- Indian Economy Government of India (2013)
- Employment across various sectors, NSSO 66th Nationwide Survey, Planning Commission, Government of India (3 June 2014)
- Economic Survey 2010, p. 180.
- Datt & Sundharam 2009, pp. 499–501
- "India – Land and Water Resources at a glance". Central Water Commission, Government of India. Retrieved 2010-11-18.
- "State-Wise Details of Net Irrigated Area (NIA), Net Sown Area (NSA) And Percentage of NIA To NSA". Ministry of Water Resources, Government of India. Retrieved 2010-11-18.
- "Diversify fishing methods, says Pawar". The Hindu (Chennai). 5 January 2008. Retrieved 2008-11-03.
- "India's Position in World Agriculture". Agricultural Statistics at a Glance 2010. Ministry of Agriculture, Government of India. Retrieved 2010-11-18.
- "Major Food And Agricultural Commodities And Producers – Countries By Commodity". FAO. Retrieved 2009-12-12.
- "India – All Economic Indicators on Quandl". Retrieved 2013-10-08.
- GDP and its breakdown at current prices in US Dollars United Nations Statistics Division (2013)
- GDP and its breakdown at constant 2005 prices in US Dollars United Nations Statistics Division (2013)
- Task Force Report 2006, pp. 9–10.
- Kumar 2005, pp. 1040–1041
- Top ten large oil refineries Hydrocarbon Technologies (September 2013)
- Indian Chemical Industry IBEF, Ministry of Commerce and Industry, Government of India (March 2013)
- Indian Chemical Industry IBEF, Ministry of Commerce and Industry, Government of India (August 2013)
- Indian Pharmaceutical Industry IBEF, Ministry of Commerce and Industry, Government of India (2013)
- Gujarat Pharma Industry KPMG (2010)
- Indian Pharmaceutical Industry IBEF, Ministry of Commerce and Industry, Government of India (2013)
- Engineering industry of India IBEF, Ministry of Commerce and Industry, Government of India (April 2014)
- Making a case for higher engineering exports The Financial Express (24 July 2014)
- Engineering industry of India MECCANICA AND BENI STRUMENTALI, Government of Italy (2013)
- Global Tractor Market Analysis Available to AEM Members from Agrievolution Alliance Association of Equipment Manufacturers, Milwaukee, Wisconsin, USA (2014)
- India Before Europe, C.E.B. Asher and C. Talbot, Cambridge University Press, 2006, ISBN 0-521-80904-5, p. 40
- A History of India, Hermann Kulke and Dietmar Rothermund, Edition: 3, Routledge, 1998, p. 160; ISBN 0-415-15482-0
- India's gem and Jewelry Sector Dun and Bradstreet (2012)
- Consumer demand for gold up 53% in Q2 2013 led by strong growth in China and India World Gold Council (August 2013)
- Gems and Jewelry Industry in India IBEF, Ministry of Commerce and Industry, Government of India (2013)
- All that glitters is Gold: India Jewellery Review 2013 A.T. Kearny (2014)
- Oppi Untracht (1997), Traditional jewelry of India, ISBN 978-0810938861, pp 1-23
- Indian diamond cutting and polishing sector Rough and Polished (6 March 2013)
- "Textile Industry in India, Indian Textile Industry, Garment Industry". IBEF, Govt of India. Retrieved 2014-04-12.
- "Helping Tirupur emerge as a leader in knitwear exports in India". The Hindu (Chennai). 11 June 2007. Retrieved 2011-01-17.
- Neal, John (23 February 2014). "The task of protecting India's child cotton pickers". www.bbc.co.uk. The BBC. Retrieved 23 February 2014.
- Mining Chapter 15, Ministry of Statistics and Programme Implementation, Govt of India (2011)
- Emerging economies and India’s mining industry Ernst & Young (2014)
- Development of Indian Mining Industry FICCI (2012), pp 12-14
- Mining Chapter 15, Ministry of Statistics and Programme Implementation, Govt of India (2011), pp 205
- World Steel Figures in 2013 World Steel Association (2014), pp 9
- Aluminum USGS, U.S. Government (2014)
- Mines Business Knowledge Resources, Government of India (2013)
- Unlocking the Potential of the Indian Minerals Sector Ministry of Mines, Govt of India (November 2011)
- Datt & Sundharam 2009, pp. 668–669
- Sramana Mitra (29 February 2008). "The Coming Death of Indian Outsourcing". Forbes. Retrieved 2010-01-10.
- Niraj Sheth (28 May 2009). "Outlook for Outsourcing". The Wall Street Journal. Retrieved 2010-04-05.
- V. Ramakrishnan (7 December 2010). "Rupee Rally Falters as Oil Rises to Two-Year High". BusinessWeek. Retrieved 2011-01-11.
- "2011 Key World Energy Statistics". International Energy Agency. Retrieved 2012-02-07.
- "India Analysis". Energy Information Administration. Retrieved 2012-02-07.
- "CIA – The World Factbook – India". CIA. 20 September 2007. Retrieved 2007-10-02.
- Datt & Sundharam 2009, p. 104
- "EIA – Country Analysis Brief Overview – India". EIA. 18 March 2013. Retrieved 2014-02-19.
- "Basic Statistics on Indian Petroleum & Natural Gas 2008–09". Ministry of Petroleum and Natural Gas, Government of India. Retrieved 2010-11-18.
- "India’s Oil Import Bill at Rs 7,26,386 Crore in 2011-12". Press Information Bureau, Government of India. 23 August 2012. Retrieved 19 February 2014.
- "Reliance Net Beats Estimate After Boosting Natural Gas Sales". BusinessWeek. 27 January 2010. Retrieved 2010-04-05.
- "Executive summary of month of December 2013". Central Electricity Authority, Ministry of Power, Government of India. December 2013. Retrieved 19 February 2014.
- "Power Sector at a Glance "ALL INDIA"". Power Ministry. Retrieved 2012-02-06.
- "Inventory of Coal Resources of India". Ministry of Coal, Government of India. Retrieved 2010-11-18.
- "Uranium shortage holding back India's nuclear power drive". Mint. 30 June 2008. Retrieved 2010-04-05.
- Subramanian, T. S. (20 March 2011). "Massive uranium deposits found in Andhra Pradesh". The Hindu (Chennai, India).
- Thakur, Monami (19 July 2011). "Massive uranium deposits found in Andhra Pradesh". International Business Times (USA).
- Bedi, Rahul (19 July 2011). "Largest uranium reserves found in India". The Telegraph (New Delhi, India).
- "Availability of Thorium". Press Information Bureau, Government of India. 10 August 2011. Retrieved 27 March 2012.
- "Bush signs India-US nuclear deal into law". Mint. 9 October 2008. Retrieved 2010-04-05.
- "Infrastructure Rankings". CIA. Retrieved 2011-01-17.
- "National Highway Development Project NHDP)". NHAI, Ministry of Roads Transport, Govt of India. July 2014.
- "Annual report 2010–2011,". Ministry of Road transport and highways. Retrieved 2012-02-07.
- Indian Railways Govt of India (2014)
- India Infrastructure Summit 2012 Ernst & Young (2013), pp 4
- Ports Business Resources, Govt of India (2013)
- Airports AAI, Govt of India (2013)
- LIST OF LICENSED AERODROME Directorate General of Commercial Aviation, Govt of India (May 2014)
- "It's ringing mobiles throughout the country". The Tribune. 5 March 2011. Retrieved 2011-03-19.
- "With 243 million users by 2014, India to beat US in internet reach: Study". The Times of India. Retrieved 2014-07-27.
- Gnanasambandam et al., Online and upcoming: The Internet’s impact on India McKinsey & Company (December 2012)
- "The Bird of Gold – The Rise of India's Consumer Market". McKinsey and Company. May 2007.
- Anand Dikshit (12 August 2011). "The Uneasy Compromise – Indian Retail". The Wall Street Journal.
- The Indian Kaleidoscope - Emerging trends in retail PWC (2012)
- "Winning the Indian consumer". McKinsey & Company. 2005.
- Majumder, Sanjoy (25 November 2011). "Changing the way Indians shop". BBC News.
- Successful Innovations in Indian Retail Booz Allen & PwC (February 2013)
- "Retailing in India: Unshackling the chain stores". The Economist. 29 May 2008. Retrieved 2010-01-10.
- Sharma and Mukherji, Bad Roads, Red Tape, Burly Thugs Slow Wal-Mart's Passage in India The Wall Street Journal (12 January 2013)
- India's Food Transportation Ordeal The Wall Street Journal (11 January 2013)
- UNWTO Tourism Highlights 2014 Edition United Nations World Tourism Organization, pp 9
- India's tourism performance United Nations World Tourism Organization (2013)
- Yearbook of Tourism Statistics, Data 2008 – 2012, 2014 Edition United Nations World Tourism Organization (2014)
- RN Pandey, Inbound Tourism Statistics of India Ministry of Tourism, Govt of India (2012)
- The GDP contribution of international tourism is estimated at 2.8% by UNWTO, International Tourism Statistics
- Mudur, Ganapati (June 2004). "Hospitals in India woo foreign patients". British Medical Journal 328 (7452): 1338. doi:10.1136/bmj.328.7452.1338. PMC 420282. PMID 15178611.
- Medical Tourism draws Americans to India Washington Times (18 August 2013)
- Datt & Sundharam 2009, p. 858
- Datt & Sundharam 2009, pp. 838–839
- Jayati Ghosh (21 July 2005). "Bank Nationalisation: The Record". Macroscan. Economic Research Foundation. Retrieved 2011-01-11.
- Datt & Sundharam 2009, pp. 839–842
- Datt & Sundharam 2009, pp. 334–335
- Diana Farrell; Susan Lund. "Reforming India's Financial System" (PDF). United Nations Public Administration Network. Retrieved 2011-01-11.
- Jeetha D'Silva (1 September 2007). "India growth story is attracting talent from govt establishments". Mint. Retrieved 2011-01-11.
- Datt & Sundharam 2009, pp. 854–855
- Srinivasan, T.N. (2002). "Economic Reforms and Global Integration" (PDF). 17 January 2002. Economic Growth Center, Yale University. Retrieved 2009-06-21.
- Panagariya 2008, pp. 27–29
- Datt & Sundharam 2009, pp. 747–748
- Panagariya 2008, p. 109
- "Trade profiles-India". World Trade Organisation. Retrieved 2012-02-07.
- Datt & Sundharam 2009, p. 757
- "Imports and Exports Databank". Ministry of Commerce and Industry, Government of India. Retrieved 2010-04-05.
- "India's Foreign Trade: November 2010". Press Release. Ministry of Commerce and Industry, Government of India. 3 January 2011. Retrieved 2011-01-11.
- "India & the World Trade Organisation". Embassy of India. Archived from the original on 13 June 2005. Retrieved 2005-07-09.
- Datt & Sundharam 2009, pp. 763–765
- Economic Survey 2010, pp. 127–129.
- Economic Survey 2010, p. 127.
- 2013 Annual Report Ministry of Commerce, Govt of India (2013)
- India's trade deficit with China mounts to $ 31.42 bn The Economic Times (10 January 2014)
- Economic Survey 2010, pp. 142–144.
- "Master Circular on External Commercial Borrowings and Trade Credits" (PDF). Reserve Bank of India. Retrieved 2011-01-11.
- Economic Survey 2010, p. 132.
- UK to end financial aid to India The Financial Times (9 November 2012)
- "FDI in India Statistics". Ministry of Commerce and Industry, Government of India. Retrieved 2010-11-22.
- "India 2nd best country for biz investment: Survey". The Financial Express. Retrieved 2008-11-03.
- "FinMin considers three single-brand retail FDI proposals".
- "Next Big Spenders: India's Middle Class". McKinsey & Company. Retrieved 2010-04-05.
- Sushma Ramachandran (25 February 2005). "100 per cent FDI in construction industry through automatic route". The Hindu (Chennai, India). Retrieved 2010-12-17.
- Govt unleashes big-bang FDI reforms, opens up defence The Times of India (17 July 2014)
- Govt allows FDI multi-brand retail, aviation in bold reform push Reuters (14 September 2012)
- "India FDI Fact sheet – September 2010". Department of Industrial Policy & Promotion, Ministry of Commerce and Industry. Retrieved 2010-12-21.
- Jaimini Bhagwati (17 December 2010). "Rationalising FDI taxes". Business Standard. Retrieved 2010-12-21.
- Shah and Patnaik, India's financial globalisation IMF (2012)
- Mahindra Expands Effort to Counter Global Rivals with U.S. Engineering The Wall Street Journal (9 May 2014)
- A Slice of World Action Business Today (11 November 2012)
- India’s industrial outpost Tata for now The Economist (10 September 2011)
- JLR's Ratan Tata warns on UK competitiveness The Telegraph (5 December 2012)
- "Your Guide to Money Matters". Reserve Bank of India. Retrieved 2011-01-11.
- "25 paise and below coins not acceptable from June 30 – The Times of India". Times of India. Retrieved 2011-01-26.
- "Govt to scrap 25 paise coins". NDTV. Retrieved 2011-01-26.
- Datt & Sundharam 2009, p. 812
- Datt & Sundharam 2009, pp. 887–888
- Datt & Sundharam 2009, p. 822
- International Monetary Fund (1996), 1996 Annual Report on Exchange Arrangements & Exchange Restrictions at Google Books, pages 224-226
- USD INR Currency Conversion Rates, Yahoo
- Table 2.9 of World Development Indicators: Distribution of income or consumption The World Bank
- "Homes become more affordable in last 10 years". The Times of India. 2 May 2012.
- "Poverty reduction and equity (2010)". World Bank. July 2012. Retrieved 2012-07-11.
- Table 3.4, World Consumer Income and Expenditure Patterns - Annual Household Income Euro Monitor International (2013)
- "Final Figures of Houselisting & Housing Census, 2011 Released". Census 2011, Government of India. 13 March 2012.
- "Median household size drops below 4 in cities". Time of India. 25 March 2012.
- "Country Report – India (2010)". The World Bank. 2011.
- Prabhakar Sinha (1 August 2010). "'India has more rich people than poor now'". The Times of India. Retrieved 2010-11-15.
- GNI per capita, PPP (current international $) The World Bank (July 2014)
- Nutrition, Fast Facts, UNICEF (2009)
- "India Statistics". UNICEF, United Nations. 2011.
- "Economic Survey 2004–2005". Retrieved 2006-07-15.
- Panagariya 2008, p. 146
- Tom Wright and Harsh Gupta (29 April 2011). "India's Boom Bypasses Rural Poor". The Wall Street Journal.
- "Indian rural welfare – Digging holes". The Economist. 5 November 2011.
- James Fontanella-Khan and James Lamont (29 February 2012). "Rural India enjoys consumption boom". The Financial Times.
- Sarkar & Kumar (2011), Impact of MGNREGA on Reducing Rural Poverty and Improving Socio-economic Status of Rural Poor: A Study in Burdwan District of West Bengal, Agricultural Economics Research Review, Vol 24
- Swain & Ray (2013), Social welfare through guaranteed wage employment: experience of National Rural Employment Guarantee Scheme in an Indian state, Journal of International and Comparative Social Policy, 29(1), 79-90
- Aggarwal & Kumar (November 2012), Structural change, industrialization and poverty reduction: the case of India, in United Nation's UNIDO workshop "The Untold Story: Structural Change for Poverty Reduction–The Case of the BRICS", Vienna, 16–17 August (pp 1-68)
- Kotwal, Ramaswami & Wadhwa (2011), Economic liberalization and Indian economic growth: What's the evidence?, Journal of Economic Literature, Vol. 49, No. 4, 1152-1199
- Datt & Sundharam 2009, pp. 423–424
- Desai, Sonalde, Amaresh Dubey, B.L. Joshi, Mitali Sen, Abusaleh Shariff and Reeve Vanneman (201) India Human Development in India: Challenges for a Society in Transition, Oxford University Press, page 40-44
- Economic Survey 2010, pp. 275–277.
- Datt & Sundharam 2009, pp. 434–436
- Datt & Sundharam 2009, p. 431
- Kaushik Basu (27 June 2005). "Why India needs labour law reform". BBC. Retrieved 2010-12-16.
- Datt & Sundharam 2009, p. 434
- Drèze & Sen 1996, p. 39
- "Child Labour and India — Embassy of India". Embassy of India. Archived from the original on 23 October 2007. Retrieved 2009-03-13.
- Drèze & Sen 1996, pp. 130–131
- Desai, Sonalde, Amaresh Dubey, B.L. Joshi, Mitali Sen, Abusaleh Shariff and Reeve Vanneman (201) India Human Development in India: Challenges for a Society in Transition, Oxford University Press, page 131
- India and its diaspora Ministry of Overseas Indian Affairs, India
- Leone Lakhani, Dubai's expat Indians: The world's most productive foreign workers CNN (19 May 2014)
- Ajay Banerjee (9 January 2011). "NRIs don't invest as much as they remit, says Montek". The Tribune. India. Retrieved 2011-01-13.
- "India Country Overview 2013". World Bank. 2014. Retrieved 2014-07-28.
- Somini Sengupta (22 June 2008). "The Food Chain in Fertile India, Growth Outstrips Agriculture". The New York Times. Retrieved 2010-03-29.
- "India: Priorities for Agriculture and Rural Development". World Bank. Retrieved 2011-01-08.
- Panagariya 2008, p. 318
- Datt & Sundharam 2009, p. 502
- Transparency International India. "India Corruption Study 2005" (PDF). Centre for Media Studies. Archived from the original on 15 April 2007. Retrieved 2008-03-14.
- "India Corruption Study – 2008". Transparency International. 2008.
- "Corruption Perceptions Index 2011". Transparency International. Retrieved 2012-07-09.
- Drèze & Sen 1996, p. 180
- "Survey on Bribery and Corruption – Impact on Economy and Business Environment". KPMG. 2011.
- Debroy and Bhandari (2011). "Corruption in India". The World Finance Review.
- "Corruption in India – A rotten state". The Economist. 10 March 2011.
- "India's civil service: Battling the babu raj". The Economist. 6 March 2008. Retrieved 2011-01-08.
- Karthik Muralidharan. "Teachers and Medical Worker Incentives in India" (PDF). University of California. Retrieved 2009-06-21.
- Kaushik Basu (29 November 2004). "Combating India's truant teachers". BBC. Retrieved 2011-01-09.
- Jayaraman, K.S. (9 November 2009). "Report row ousts top Indian scientist". Nature. Retrieved 19 June 2012.
- Kuldip Nayar (4 February 2011). "Laundering black money". Deccan Herald. India. Retrieved 2011-02-06.
- V. Venkateswara Rao (13 August 2010). "Black, bold and bountiful". The Hindu Business Line. Retrieved 2011-02-06.
- "No 'black money' statistics exist: Swiss banks". The Times of India. 13 September 2009.
- "Banking secrecy spices up Indian elections". SWISSINFO – A member of Swiss Broadcasting Corporation. 14 May 2009.
- "Education in India". World Bank. Retrieved 2011-01-13.
- Economic Survey 2010, pp. 280–281.
- "A special report on India: An elephant, not a tiger". The Economist. 11 December 2008. Retrieved 2011-01-17.
- Drèze & Sen 1996, pp. 114–115
- Ranking of states and union territories by lireacy rate: 2011 Census of India, Ministry of Home Affairs, Government of India (2013)
- Datt & Sundharam 2009, pp. 474–475
- "Country Strategy for India (CAS) 2009–2012" (PDF). World Bank. Retrieved 2009-06-21.
- Drèze & Sen 1996, pp. 45–46
- Panagariya 2008, pp. 164–165
- Sachs, D. Jeffrey; Bajpai, Nirupam and Ramiah, Ananthi (2002). "Understanding Regional Economic Growth in India" (PDF). Working paper 88. Harvard University. Archived from the original on 1 July 2007.
- Kurian, N.J. "Regional disparities in india". Planning Commission of India. Retrieved 2005-08-06.
- Datt & Ravallion (2011), Has India's economic growth become more pro-poor in the wake of economic reforms?, The World Bank Economic Review, 25(2), pp 157-189
- Tripathi, Sabyasachi (December 2013), Has urban economic growth in Post-Reform India been pro-poor between 1993-94 and 2009-10? Indian Council for Research on International Economic Relations, MPRA Paper No. 52336, Ludwig Maximilians Universität München
- Ernst & Young, Insurance industry: Challenges, reforms and realignment India (2012)
- IBEF, Insurance Industry in India, Sectoral Presentation, Ministry of Finance, Government of India (October, 2014)
- IBEF, Insurance Sector in India April 2014 Industry Report
- ‘Modi Mania’ propels India’s stock market into world’s top 10 The Financial Times (22 May 2014)
- Latest Statistics of Stock Exchanges Worldwide WFE (July 2014), see complete report for 2014-June
- EY Global IPO Trends Global IPO Trends Q4 2013 Ernst & Young (2014)
- Listing abroad sans domestic IPO set to be a reality soon Business Standard (28 July 2013)
- Datt, Ruddar; Sundharam, K.P.M. (2009). Indian Economy. New Delhi: S. Chand Group. p. 976. ISBN 978-81-219-0298-4.
- Drèze, John; Sen, Amartya (1996). India: Economic Development and Social Opportunity. Oxford University Press. p. 292. ISBN 978-0-19-564082-3.
- Iftikhar-ul-Awwal, A. Z. M. (1982) The Industrial Development of Bengal, 1900-1939 Vikas Publishing House: New Delhi, 1982, Pages: 256, ISBN 0706915798
- Kumar, Dharma (2005). The Cambridge Economic History of India, Volume II : c. 1757–2003. New Delhi: Orient Longman. p. 1115. ISBN 978-81-250-2710-2.
- Nehru, Jawaharlal (1946). The Discovery of India. Penguin Books. ISBN 0-14-303103-1.
- Panagariya, Arvind (2008). India: The Emerging Giant. Oxford University Press. p. 514. ISBN 978-0-19-531503-5.
- Raychaudhuri, Tapan; Habib, Irfan (2004). The Cambridge Economic History of India, Volume I : c. 1200 – c. 1750. New Delhi: Orient Longman. p. 543. ISBN 978-81-250-2709-6.
- Roy, Tirthankar (2006). The Economic History of India 1857–1947. Oxford University Press. p. 385. ISBN 978-0-19-568430-8.
- Papers and reports
- "Growth of India". Retrieved 2005-08-10.
- "Milton Friedman on the Nehru/Mahalanobis Plan". Retrieved 2005-07-16.
- "Infrastructure in India: Requirements and favourable climate for foreign investment". Retrieved 2005-08-14.
- Bernardi, Luigi and Fraschini, Angela (2005). "Tax System And Tax Reforms in India". Working paper n. 51.
- Centre for Media Studies (2005). "India Corruption Study 2005: To Improve Governance Volume – I: Key Highlights" (PDF). Transparency International India. Retrieved 2009-06-21.
- Ghosh, Jayati. "Bank Nationalisation: The Record". Macroscan. Retrieved 2005-08-05.
- Gordon, Jim and Gupta, Poonam (2003). "Understanding India's Services Revolution" (PDF). 12 November 2003. Retrieved 2009-06-21.
- Panagariya, Arvind (2004). "India in the 1980s and 1990s: A Triumph of Reforms".
- Sachs, D. Jeffrey; Bajpai, Nirupam and Ramiah, Ananthi (2002). "Understanding Regional Economic Growth in India" (PDF). Working paper 88. Archived from the original on 1 July 2007.
- Srinivasan, T.N. (2002). "Economic Reforms and Global Integration" (PDF). 17 January 2002. Retrieved 2009-06-21.
- Kurian, N.J. "Regional disparities in india". Retrieved 2005-08-06.
- Ravi S Jha. "India, the Goliath, Falls with a Thud".
- "India says 21 of 29 states to launch new tax". Daily Times. 25 March 2005.
- "Economic structure". The Economist. 6 October 2003.a
- "Regional stock exchanges – Bulldozed by the Big Two". Retrieved 2005-08-10.
- "FinMin considers three single-brand retail FDI proposals".
|Wikimedia Commons has media related to Economy of India.|
|Wikiquote has quotations related to: Economy of India|
- Government of India websites
- Ministry of Finance, Government of India
- Department of Commerce, Government of India
- Department of Industrial Policy & Promotion
- Office of the Economic Adviser
- India in Business- Official website for Investment and Trade in India
- Union Budget & Economic Survey
- Income Tax Department of India
- Central Board of Excise and Customs
- Reserve Bank of India's database on the Indian economy
- Publications and statistics
- Key indicators of household consumer expenditure in India 2011–2012
- World Bank India 2012 Trade Summary Statistics
- World Bank – India Country Overview
- Ernst & Young 2011 Report on Doing Business in India
- IMF, India
- CIA – The World Factbook – India
- Quandl – India Country Overview
- Tariffs applied by India as provided by ITC's Market Access Map, an online database of customs