Monday, July 4, 2011

Top facts you cannot ignore about Indian economy ! nice read ...

It’s a well known fact that Indian Economy is one of the fastest growing economies of the world and among one of those economies that can contribute majorly in global production after couple of decades.

Ahead of several advanced countries, India has been ranked 17th in financial market sophistication, 24th in terms of banking sector, 39th in innovation, 44th in business sophistication and 51st in global competitiveness. However, India has been ranked poorly in social factors.
In spite of Indian existing socio-economic issues like poverty, unemployment, bureaucratic & social corruption, India is likely to have economic boom and prosperity.
Let’s have a look at the top facts that provide India an edge over many other leading economies of the world.

Gross Domestic Production
Indian economy is world’s fourth largest (only after US, China and Japan) in terms purchasing power parity (PPP), which is $ 4.06 Trillion and world’s tenth largest economy in terms of nominal GDP, which is $1.53 Trillion.
Source: International Monetary Fund (IMF)
Note: Purchasing Power Parity (PPP) is defined as the exchange rate, which makes the cost of a particular item same in two economies.

Indian Economy In 2030
Indian economic can be the world’s third largest economy by 2030. Indian economy will have better average growth than China during next two decades. India will be benefitted from the robust domestic demand and favourable demographics.

Source: Standard Chartered Global Research study.

Indian Economy’s Growth Rate
Indian economy is likely to become the fastest growing economy in 2012. Indian economy has already been growing at an average annual rate of 5.8% for the last two decades. During 2004-10, the economy has grown by 8.40% and it even touched the double digit in 2nd quarter of 2006-07. The economy is expected to grow at the annual rate of close to 8% in coming years.
The Major Growth Engines of Indian Economy
Service sector is the largest in terms of annual GDP contribution equal to 54% followed by agriculture (28%) and industrial sector (18%). The major growth engines are steel, cement, automobile, machinery, IT & ITES, textile, telecommunication, petroleum, mining, transportation and chemicals.

Indian Capital Market
Bombay Stock Exchange (BSE) has 5034 listed Indian companies. The market capitalization of all the listed companies in BSE stands at staggering $1.63 Trillion (as on December 2010), which makes it the fourth largest capital market in Asia and eighth largest in the world.

Large Workforce
Over half of the Indian population is below 25 years of age and altogether it has 467 million work force (second largest in the world after China). Indian work force will increase by 240 million and will produce 28% of the global work force by 2020, when average Indian population is expected to be 29 years. India also has the second largest pool of technical workers including engineers, scientists and doctors.

High Value Real Estate Sector
Indian real estate sector has been all time high during last decade and has been able to attract over $ 9.40 Trillion during 2000 to 2011 through its burgeoning multiplexes, large townships and growing commercial spaces including numerous corporate offices. Mumbai, the economic capital of India has already become the sixth most expensive office and commercial location.

Growing Number of Billionaires
India is third in term of number of billionaires only after US and China with a total 55 billionaires with a combined wealth of $ 246 billion.
Source: Forbes
Rising Consumerism and Industrial Growth
Indian middle class population is expected to grow to close to 600 million, which adds a positive story to Indian growing consumerism and domestic demand.
India head quarters seven of the world’s top 15 technology outsourcing companies. Companies like Infosys, Wipro, TCS have created new high and benchmarks for the global IT & ITES sectors. Indian IT and ITES (including BPO and KPO) exports has grown by 18.7% during 2010-2011 to reach a new high of $ 59 billion. It contributes to 26% of India’s total exports 11% of total services.
Source: Nasscom
Indians are the most confident customers across the globe and in terms of consumerism, Indian stands at number 13 in the world; it expected to be the 5th largest by 2030.
Indian telecom industry is the fastest growing in the world with number of mobile subscribers over 800 million.

Source: Telecom Regulatory Authority of India (TRAI)
Indian automobile industry is the world’s second fastest growing in the world. Currently India is the fifth largest in terms of automobile manufacturing and is expected to grow at 12 to 15% every year. Indian market has the cheapest and the most expensive cars.
India has the ninth largest aviation industry in the world and is expected to be the fastest growing by 2020.

Foreign Reserve
India has a large pool of foreign reserve amounting to $ 310 billion, which is world’s seventh largest.

Growing Exports
India’s exports increased by 34.42% in 2010-11 to $23.8 billion. Although, Indian economy is not majorly dependent on exports due to high domestic consumption, still, growth in exports remain crucial for economic development.

Decreasing Trade Deficit
Decreasing trend of trade deficit is a plus for Indian economy, which has decreased from $ 11.02 billion in 2010 to $ 8.98 billion in 2011.

Road and Railway Infrastructure
Currently, India has a road network of over 33 lakh kilometres, which makes it the third largest in the world. In terms of railway network, India is the fourth largest with the railway track of over 64,000 kilometres and 7083 railway stations.

Employment Generating Capacity
India also stands tall in term of providing employment. It’s among the world’s top commercial employers with over 16 lakh employees. India has a network of more than 53,000 branches of banks and 17,000 ATM outlets through a gigantic network of 27 public sector banks, 88 scheduled commercial banks and 31 private banks.

Farm Production
India is the second largest in terms of farm production and is globally the largest producer and consumer of tea (contributing to 30% of global tea production and 25% tea consumption).

India-A Role Model For The Global Economy
In an equitable, globalized and liberalized economic situation, India has emerged as a role model for sustainable and balanced growth. India being an important G-20 member plays a crucial role in devising strategies for broad based growth for other economies. The whole credit goes to India’s fiscal, monetary and debt policies as well as the systems in place for administration and cost control.

No comments: