Recent Trends in Indian Economy

• India has undergone a paradigm shift owing to its competitive stand in the world. The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.
• Indian economy is estimated to grow at 8.5 percent in 2010-11 as compared to the growth rate of 8.0 percent in 2009-10. These GDP figures are based at factor cost at constant (2004-05) prices in the year 2010-11. A growth rate of 19.1 percent is estimated for GDP at current prices in the year 2010-11.

• The per capita income at current prices during 2010-11 is estimated to have attained a level of US$ 1146.84 as compared to US$ 971.80 for the year 2009-10, showing a rise of 17.9 per cent.
• Annual growth by economic activity in Gross Domestic Product (GDP) for the year 2010-11, released by the Central Statistics office (CSO) of Government of India

 

S.No.	Industry	GDP for the year 2010-11
		at 2004-05 prices (US$ billion)		at current prices
		2009-10	2010-11	2009-10	2010-11
1	Agriculture, forestry & fishing	137.06	145.70	226.56	288.36
2	Mining & quarrying	21.69	22.88	32.09	39.83
3	Manufacturing	148.69	160.78	188.27	214.97
4	Electricity, gas & water supply	18.47	19.48	19.27	21.44
5	Construction	73.97	79.99	104.35	123.02
6	Trade, hotels, transport & communication	248.01	273.62	307.29	358.65
7	Financing, insurance, real estate & business services	160.40	176.35	213.63	256.27
8	Community, social & personal services	126.72	135.61	184.16	216.29
Total GDP		933.88	1,013.81	1,275.63	1,518.20

·         Source: Central Statistics Office (CSO), Ministry of Statistics &Programme Implementation, Government of India

Advantage India

• World's largest democracy with 1.2 billion people.
• Stable political environment and responsive administrative set up.
• Well established judiciary to enforce rule of law.
• Land of abundant natural resources and diverse climatic conditions.
• Rapid economic growth: GDP to grow by 8.5% in 2010-11* and 9.0% in 2011-12.
• India's growth will start to outpace China's within three to five years and hence will become the fastest large economy with 9-10% growth over the next 20-25 years (Morgan Stanley).
• Investor friendly policies and incentive based schemes.
• Second most attractive Foreign Direct Investment (FDI) location in the world: India received a total of US$ 25.9 billion of FDI in 2009-10.
• Healthy macro-economic fundamentals: Investment rate is expected to be 37% in 2010-11 and 38.4% in 2011-12 while Domestic Savings rate is expected to be 34% in 2010-11 and 36% in 2011-12.
• India's economy will grow fivefold in the next 20 years (McKinsey).
• Cost competitiveness; low labour costs.
• Total labour force of nearly 530 million.
• Large pool of skilled manpower; strong knowledge base with significant English speaking population.
• Young country with a median age of 30 years by 2025: India's economy will benefit from this "demographic dividend".
• The proportion of population in the working age group (15-59 years) is likely to increase from approximately 58% in 2001 to more than 64% by 2021.
• Huge untapped market potential.
• The urban population of India will double from the 2001 census figure of 290m to approximately 590m by 2030 (McKinsey).
• Progressive simplification and rationalization of direct and indirect tax structures.
• Reduction in import tariffs.
• Full current account convertibility.
• Compliance with WTO norms.
• Robust banking and financial institutions.

"* India's financial year is from April to March. 2010-11 above means April 2010-March 2011."