India is a developing country with a fast growing economy. The country has a huge workforce and diversified natural resources.

Gross Domestic Product (GDP) at current prices

GDP at current prices was INR 78,756.27 billion in 2010-11, as compared to INR 65,502.71 billion in 2009-10.

(Source: RBIpg 12)

GDP at current prices in the first, second and third quarter of 2010-11 amounted to INR 20,192.13 billion, INR 20,352.03 billion and INR 23,050.54 billion.

(Source: National Statistics, pg 5)          

The major contribution to the GDP of India comes from Services sector that contributes around 63% of total GDP. Agriculture and Industry contribute each around 20% to the total GDP. Over the period the share of Services-to-GDP has increased over the share of Agriculture-to-GDP.

(Source: RBI)        

GDP at PPP

GDP at PPP was registered at USD 4,457.784 billion in 2011, marginally higher than Japan’s USD 4440.376, making it the third-biggest economy after the United States and China. The GDP at PPP is projected to be USD 4,824.55 billion and USD 5254.58 billion in 2012 and 2013 respectively.

(Source: IMF)

GNI per capita (constant 2005 international $)

The GNI per capita at PPP in 2011 amounted to USD 3,468 as compared to USD 2,280 in 2005.

(Source: UNDP)

Income tax rate

The income tax rate imposed on an individual is 30.9%. The below income tax is applicable from FY 2012-13.

 (Source: financeministry.in)

The Value-added-tax rate in the country is 12.5%.

(Source: taxrates.cc)

Corporate rax rate

The corporate tax rate levied is 33.99% in the country.

(Source: taxrates.cc)

Inflation rate

Inflation in Consumer Price Index for Industrial Workers (CPI-IW) stood at 5.3 per cent in January 2012 as compared to 6.5 per cent in the last month. CPI-IW food inflation (weight 46.20%) has declined to 0.49 per cent in January 2012 from 1.97 per cent in the last month. CPI-RL food inflation (weight 66.77%) has declined to 0.50 per cent in January 2012 from 2.37 per cent in last month.

(Source: Ministry of Finance)

FDI and portfolio investment inflow

The foreign direct investment inflow was registered at USD 30,380 million in 2010-11, decreasing 19.5% as compared to the previous year. Portfolio investment inflows amounted to USD 31,471 million in the same period.

(Source: RBI)

Reserve requirements (cash reserve ratio)

The Cash Reserve Ratio (CRR) in April 2012 was registered at 4.75% and the Statutory Liquidity Ratio (SLR) was at 24%.

(Source: RBI)

Banking sector assets

The total bank sector assets were INR 71,835.22 billion in 2010-11. Furthermore, Gross Non-Performing Loan-to-Gross Advances ratio was recorded at 2.25% in 2010-11 and Net Non-Performing Loan-to-Net Advances was recorded at .97% in 2010-11.

(Source: RBI, Pg 81,96)

Reserve Bank of India (Balance Sheet)

(Source: RBI, Pg 176)

Stock market capitalisation

The Stock Market Capitalisation in June 2011 at the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) was INR 65.75 trillion and INR 67.29 trillion respectively.

(Source: RBI)

Consumer Price Index (CPI)

In India there are four types of CPIs:

• CPI Industrial Workers – General Index
• CPI Industrial Workers – Food Group
  
• CPI Agricultural Labourers
• CPI Urban Non-Manual Employees

The Consumer Price Index for Industrial Workers – General Index and Agricultural Labourers (AL) in June 2011 was recorded at 189 and 598 respectively. Furthermore, the Consumer Price Index for Industrial Workers – Food Group was registered at 201 in June 2011. Urban Non-Manual Employees (UNME) has been discontinued with effect from January 2011 and was last registered at 719 in Dec 2010.

(Source: RBI)

Base year

Industrial Workers: General Index: CPI-2001 = 100

Industrial Workers: Food Group: CPI-2001 = 100

Urban Non-Manual employees: CPI-1984-85 = 100

Agricultural Labourers: CPI-1986-87 = 100

Wholesale Price Index (WPI)

WPI in calendar year 2010 was registered at 140.08, as compared to 127.86 in calendar year 2009.

(Index base 2004-05=100)

(Source:industry.nic)

Interest rate on savings deposits

The savings deposit rate for 2010-11 is 3.5%.

(Source: RBI)

Interest rate on time deposits

The time deposit rate for 2010-11 is 7%-8%.

(Source: RBI)

Money supply (Currency in Circulation)

The reserve money, narrow money and broad money supply in the year 2010-11 was recorded at INR 13.76 trillion, INR 16.35 trillion and INR 64.99 trillion respectively. The broad money as of March 2012 was INR 73.47 trillion.

(Source: RBI, Ministry of Finance)

Government finances

Sovereign debt dynamics

Public debt

The public debt in period Oct-2011 to Dec-2011 amounted to INR 34.13 trillion, increasing 18.37%, from the previous year in the same period.

(Source: Ministry of Finance)

Central government debt

(Source: Ministry of Finance)

Government expenditure

The total government expenditure for 2010-11 amounted to INR 12,165.75 billion. The non-planned expenditure contributed to 67.5% of the total expenditure, followed by 32.5% of planned expenditure. The non-planned expenditure includes defence expenditure, petroleum and fertilizer subsidy, interest payments and debt servicing, and grants and loans.

(Source: Indiabudget.nic)

(Source: Indiabudget.nic)

Official exchange rate

The exchange rate in 2009-10 was INR 47.42 per dollar, compared to INR 45.92 per dollar in the previous year.

(Source: Ministry of finance)

(Source: RBI)

Labour Force and labour force participation rate

The total labour force in 2009-10 was registered at 520 million, with a labour force participation rate of 44.2%. In 2014-15 the labour force and its participation rate are projected to be 574 million and 45.8% respectively.

(Source: Ministry of Labour)

(Source: labour.nic)

Unemployment rate

The total unemployment rate was recorded at 9.4% in 2009-10. Specifically, in rural and urban areas the unemployment rate was 10.1% and 7.3% respectively.

(Source: labour bureau)

 (Source: labour.nic)

The government’s eleventh year plan (2007-2012) has introduced various schemes such as the Swarana Jayanti Shahari Rozgar Yojana (SJSRY), Prime Minister's Employment Generation Programme (PMEGP), and Swarnajayanti Gram Swarozgar Yojana (SGSY) to create additional employment opportunities in rural and urban areas.

(Source: labour.nic)

Employment in agriculture

In 2009-10, 50 million households were self-employed in agriculture.

(Source: labour bureau)

Employment in industries

(Source: labour bureau)

Level of unionisation

The trade unions are formed on the basis of political lines.

The major trade unions in the country include:

• Bharatiya Majdoor Sangh (BMS)
• Indian National Trade Union Congress (INTUC)
• Hind Mazdoor Sabha
• Centre of Indian Trade Union (CITU)
• All India United Trade Union Centre (AlUTUC)
• Trade Union Coordination Centre (TUCC)
• Self Employed Women's Association (SEWA)
• All India Central Council of Trade Unions (AICCTU)

(Source: labour.nic)

Minimum wage

The minimum wages are decided on the skill level of the workers and their place of work,

(Source: Ministry of Labour)

Area A includes major cities

Area B includes Tier I and II cities

Area C is simply areas not included in Area A or Area B

The Ministry of Labour and Employment established the National Floor Level Minimum Wage (NFLMW) to have an uniform wage across the country. State governments fix their minimum wage levels in such a manner that it is not less than the NFLMW.

(Source: globalmarch.org)

Government stability

India is a Democratic Republic and has a parliamentary form of federal government. It is the world’s largest democracy.

The government consists of the executive, the legislative and the judiciary branches. The President serves as constitutional head of the state and Prime Minister is the head of the government.

The executive branch is comprised of the President, Vice-President, Prime Minister and a Council of Ministers. The President and the Vice-President are both elected by the members of the electoral college, which is comprised of members of both houses of parliament, for a term of five years.

The main political parties active in the country are:

• Indian National Congress (INC)
• Bharatiya Janata Party (BJP)
• Communist Party of India-Marxist
• Nationalist Congress Party (NCP)

The Indian National Congress (INC) and Bharatiya Janata Party (BJP) are the major political parties in the country. However, there are various other regional and small national parties.

After the 2009 elections, the INC along with other political parties formed a coalition government. Currently, Dr. Manmohan Singh and Pratibha Patil serve as the Prime Minister and President of the country respectively.

The Parliament is the legislative body of the country. It includes two houses, the House of People (Lok Sabha) and the Council of States (Rajya Sabha). The functions of the parliament are to pass the budget, amend the constitution and manage the administration, along with discussions on national policies and development plans. It also has the power to impeach the President and to remove the judges of the supreme and high court, the Chief Election Commissioner, the Auditor General and the Comptroller.

The Lok Sabha is comprised of the representatives of the people who are directly elected by universal adult suffrage. The Lok Sabha consists of 545 members of whom 543 members are appointed directly from the states and union territories. The President appoints the remaining two members from the Anglo-Indian community. The members of the Lok Sabha are appointed for a term of five years.

Alternatively, the Rajya Sabha consists of 245 members of whom 233 members are elected by the legislative assemblies of the states and the union territories. The remaining 12 members are nominated by the President.

(Source: india.gov, IPU)

Regulatory environment

The nation has a parliamentary form of federal government. Under which, the President serves as the constitutional head of the state, while the Prime Minister is the head of the government.

(Source: heritage.org)

India is ranked 124^th on the 2011 Index of Economic Freedom with a score of 54.6 (out of 100).  Hence, the country’s overall score is below the global and regional average. In the Asia-Pacific region, it ranks 25^th out of the 41 countries.

Corruption perception

India is ranked 87^th on the Corruption Perceptions Index with a score of 3.3, indicating a high level of corruption.

(Source: transparency.org)

Freedom of information

The country is ranked 122^nd on the World Press Freedom Index 2010 with a score of 38.75, slipping from its 2009 position, when it was ranked 105^th.

(Source: rsf.org)

Key newspapers include: The Hindu, The Times of India, The Hindustan Times, Deccan Herald, The Indian Express and The Asian Age.

Judicial system

The judiciary is independent of the other branches and is based on the constitution.

The various levels of judiciary in the country are:

• Supreme Court
• High Court
• Subordinate Courts
• District Courts
• Civil Courts

There are also Panchayat Courts in some states operating under various names such as, Nyaya Panchayat, Panchayat Adalat, and Gram Kachheri.

The Supreme Court is the highest authority, comprised of the Chief Justice of India and other judges who are appointed by the President.

The Attorney General of India, appointed by the President, with assistance from the Solicitor General advises the government on various legal matters.

(Source: Supreme Court)

Total population

India is the second most populated country in the world after China. The total population in 2009-10 was registered at 1,170 million, increasing 1.4% from the previous year. 

(Source: RBI)

Gender balance

In 2010, the total male and female population in the country is estimated to be 609.1 million and 567.63 million respectively. By 2015, the total male and female population are projected to be 649.4 million and 604.6 million respectively.

The gender ratio in the country is estimated at 917 females per thousand males. The gender ratio is slightly better in the urban areas (924 females per thousand males) as compared to the rural areas (915 females per thousand males).

(Source: National Statistics, Labour Bureau)

Mortality rate

The infant mortality rate between 2005 and 2010 was registered at 54.6 deaths per thousand live births. The crude birth rate recorded in 2009 was 22 births per thousand individuals, as compared to 32 births per thousand in 1990. The death rate registered in 2009 was 8 deaths per thousand individuals.

(Source: UN, UNICEF)

Average life expectancy

The life expectancy for males and females between 2005 and 2010 was registered at 62.1 and 65 years respectively.

(Source: UN)

Racial/ethnic environment

The major ethnic groups in the country include: Australoid, Mongoloid, Europoid, Caucasian, and Negroid.

(Source: india.gov)

Migration and Urbanisation

The total urban population was estimated to be 350.6 million in 2010. The male and female population in urban areas is estimated at 184.5 million and 166.1 million respectively.

(Source: National Statistics)

At mid-year 2010, the total migrant population in the country was estimated to be 5.4 million. The international migrants formed only 0.4% of the total population.

(Source: UN)

Poverty and inequality

As per data from the United Nations Development Programme (UNDP), 55.4% of the country’s population is poor. Of the total population in the country, 41.6% live below the poverty line, or below USD 1.25 PPP per day.

(Source: UNDP)

Human development index (HDI)

The country is ranked 119^th on the United Nations’ Human Development Index with a score of 0.52. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

Education/literacy rate

The literacy rate in the country for individuals aged above 7 was 77.7% in 2009-10. The literacy rate in urban and rural areas was 86% and 74.6% respectively in the same year. 

(Source: labourbureau)

Education resources

The government of India provides free and compulsory education to all individuals aged 6-14 years. The education system in the country consists of primary, secondary and higher level of education. The government has launched various schemes and programmes such as the Sarva Shiksha Abhiyan (SSA), National Literacy Mission (NLM) and Mid Day Meal Scheme (MDM) to attain the goal of ‘Education for All (EFA)’.

According to data from the United Nations Development Programme (UNDP), the public expenditure on education is about 3% of the GDP.

(Source: education.nic, UNDP)

Healthcare resources

The healthcare sector in the country includes the government sector, that provides free health services to all citizens, and the private sector. Government healthcare services includes primary health care with a network of 146,036 health sub-centres, 23,458 primary health centres and 4,276 community health centres. The private health care provides various facilities such as hospital construction, medical education, pharmaceutical manufacture and new medical technology.

The budgeted expenditure on health by the central and state governments in 2009-10 amounted to INR 660 billion. The health expenditure as a percentage of GDP has decreased from 1.3% in 1990 to 1.1% in 2009. However, the government has plans to increase the spending on health to 2-3% of the GDP.

About 42% of the deaths in the country are due to non-communicable diseases. Furthermore, communicable diseases account for about 38% of the deaths with injuries and ill-defined causes accounting for 10% of the total deaths.

The government, in its eleventh five year plan, has proposed a few measures to improve healthcare in India, which include:

• To reduce infant mortality rate to 28 per 1,000 live births and maternal mortality ratio to 1 per 1,000 live births.
• To improve the gender ratio to 935 in the age group 0-6 years by 2011-12 and to 950 by 2016-17
• To upgrade the public health centres (PHCs) to 24x7 PHCs and community health centres to Indian Public Health Standards.

(Source: Ministry of Health)

Mass public transit

The mass public transit in the country includes buses, trains and auto-rickshaws.

Roadways

India has the second largest road network in the world, with a total road length of 3.34 million kilometres.

The national highways stretch to 65,569 km, the state highways have a length of 1,30,000 km and the major district roads, rural & urban roads stretch to 3.14 million km. Thus, the national highways contribute to only 2% of the total road network.

(Source: Ministry of transportation)

Railways

The country has a total railway network of 108,706 kilometres, largest in the Asian continent.

(Source: Indian railways)

Ports

The major ports in the country include Kolkata, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin, Cochin, New Mangalore, Mormugao, Mumbai, JNPT and Kandla.

(Source: Indian Ports Association)

Airports

There are international airports in all the major cities of the country. A few of the major airports are listed below:

(Source: aircraft charter)

Telecommunications networks

The telecom sector in India is growing rapidly with significant development seen over the past decade. At the end of November 2010, there were 764.76 million telephone subscribers as compared to 22.8 million subscribers in 1999. Furthermore, India is now ranked third in the world for its largest telecom network. The total tele-density as of September 2010 was registered at 60.99 per 100 population. In rural and urban areas the tele-density was 28.42 per hundred population and 137.25 per hundred population respectively.

(Source: Ministry of telecommunication, trai.gov)

The wireless and wire-line telephone subscribers contributed to 95.4% and 4.6% of the total telephone subscribers. The total internet users were 17.9 million as of September 2010. The total broadband subscribers were registered at 10.71 million in 2010, compared to 0.18 million in 2005 and 7.98 million in 2009.

(Source: Ministry of Telecommunication, trai.gov)