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India India

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India – Quick View
ECR score58.6 (Mar 2011)
ECR rank52 (Mar 2011)
Economic
GDP 2009-10USD 1,356.97 billion
GNI per capita PPP (2010)USD 3,337
FDI inflowUSD 37,182 million
Inflation8.3%
Central bank assetsUSD 154,841.64 million
Unemployment rate 2009-109.4%
Government deficitUSD 96.74 billion
Tax revenue 2009-10USD 125.71billion
Political
Government typeDemocratic Republic
Recent political crisisNA
Economic freedom score (2011)124th
Freedom of information score122nd (-12 places)
Corruption perception index87th
Structural
Birth rate23 per ‘000
Population balanceBelow 14 years – 31.3%
Population balanceAbove 60 years – Females: 8%
Life expectancy yearsMales – 62.1 years
Life expectancy yearsFemales – 65 years
Mortality rate8.5 per ‘000
Literacy rate77.7%
Internet access6.9%

[Top] Economic Overview

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.

 

Income

Tax Rates

For Males below 60 years

Up to 200,000

Nil

200,001-500,000

10%

500,001-1,000,000

20%

Above 1,000,000

30%

For Females below 60 years

Up to 200,000

Nil

200,001-500,000

10%

500,001-1,000,000

20%

Above 1,000,000

30%

For senior citizens (above 60 but below 80 years)

Up to 250,000

Nil

250,001-500,000

10%

500,001-1,000,000

20%

Above 1,000,000

30%

For senior citizens (above 60 but below 80 years)

Up to 250,000

 Nil
250,001-500,000  10%
 500,001-1,000,000  20%
 Above 1,000,000  30%

 
 

 (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.

Year

Foreign Direct Investment

Portfolio Investment

 

(USD million)

2011-12

32,952

17,409

2010-11

30,380

31,471

2009-10

37,763

32,376

2008-09

37,838

-13,855

2007-08

34,835

27,271

2006-07

22,826

7,003

2005-06

8,961

12,492

2004-05

6,051

9,315

 

 

 

 

 

 

 

 

(Source: RBI, http://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=13622)

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)

 

Total assets (INR billion)

Year

2011-12

Total Assets

10,245.54

Notes

10,558.28

Rupee coin

0.88

Small coin

 

Balance held abroad

3514.56

Investments

5904.72

Loans and advances to government

2.28

Loans and advances to banks

90.18

Other assets

733.68

 

 

 

 

 

 

 

 

 

(Source: RBI, http://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=13572)

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)

 

[Top] Financial Indicators & Government Financial

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%.

 

 

 

Time Period

Interest Rate on Time Deposits (%)

1 - 3 years

3 - 5 years

Above 5 years

2011-12

9.00 - 9.25

8.5 - 9.25

8.5 - 9.25

2010-11

8.25 - 9.00

7.75 - 9.5

7.75 - 9.5

2009-10

6.00 - 7.00

6.5 - 7.5

6.5 - 7.5

2008-09

8.00 - 8.75

7.75 - 8.5

7.75 - 8.5

2007-08

8.25 - 8.75

7.50 - 9.0

7.5 - 9.0

(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

 

Central Government Debt – Q4 2011 (INR billion)

Public debt

34,136.82

External debt

3,715.02

Internal debt

30,421.79

Other liabilities

5,852.86

TOTAL DEBT

39,989.69

Guaranteed debt

 

Total guaranteed debt

1,796.08

Outstanding guaranteed debt

1,608.16

(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)

 

Expenditure (INR billion)

Year

2010-11

2011-12E

Non-Plan Expenditure

8,215.51

8,161.82

Plan Expenditure

3,950.24

4,415.46

Total Expenditure

12,165.75

12,577.28

(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.

Time Period

Exchange Rate (INR/USD)

 Mar 2012
50.3213
Feb 2012
 49.1671

Jan 2012

51.3392

Dec 2011

52.6769

Nov 2011

50.8564

Oct 2011

49.2579

Sep 2011

47.6335

Aug 2011

45.2538

July 2011

44.4174

Jun 2011

44.8295

May 2011

44.9045

Apr 2011

44.3700

(Source: Ministry of finance)


(Source: RBI)

 

 

[Top] Labour Force and Employment Overview

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)

Year

2014-15E

2013-14E

2012-13E

2011-12E

2010-11E

Labour Force (millions)

574

563

552

541

530

Labour force participation rate (%)

45.8

45.4

45.1

44.8

44.4

(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)


Area

Unemployment Rate (%), 2009-10

 

Male

Female

Rural

8.7

14.8

Urban

5.9

13.8

Total

8.0

14.6

 (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

India 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,

Name of Scheduled Employment

Category of Worker

Wages

Area A

Area B

Area C

Agriculture

Unskilled

163

148