India Economy

Economy - overview:

India's economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. More than a third of the population is too poor to be able to afford an adequate diet, and market surveys indicate that fewer than 5% of all households had an annual income equivalent to $2,300 or more in 1995-96. India's international payments position remained strong in 1999 with adequate foreign exchange reserves, reasonably stable exchange rates, and booming exports of software services. Lower production of some nonfoodgrain crops offset recovery in industrial production. Strong demand for India's high technology exports will bolster growth in 2000.

Manufacturing & Services : In addition to petrochemical production, other manufacturing has become important, with rapid growth in aluminum production, paint and clothes manufacturing, and food processing. There is a very active private commercial sector, and trading services and other businesses in India are a major factor in the country’s economy. Community and social services such as teaching and government employment are significant sources of jobs.
Tourism has grown rapidly in the country over past few decades; many Europeans and other foreigners are attracted by the mild winter weather, extensive beaches, areas of scenic and historic interest, and opportunities for shopping in the suqs (markets). Hotels and other tourist facilities are modern and equipped with all the latest amenities.

Agriculture : Agriculture and livestock raising make up only 3 percent of the GDP. These pursuits are important, however, because the UAE has achieved a significant level of self-sufficiency in several food categories, including vegetables, eggs, and dairy products. The country is a major producer of dates for both domestic consumption and export. Many of the farms are small, but since agriculture is supported by generous government subsidies it is no longer considered a subsistence activity.

Energy : Due to its vast petrochemical resources, the UAE obtains its electricity almost exclusively from oil- and gas-burning power plants. The UAE’s plentiful fuel supply has made extensive desalination facilities and other energy-intensive activities possible.

GDP (purchasing power parity):

$1,800 (1999 est.)

GDP - real growth rate:

5.5% (1999 est.)

GDP - per capita:

purchasing power parity - $1,800 (1999 est.)

GDP - composition by sector:

agriculture: 25%
industry: 30%
services: 45% (1997)

Population below poverty line:

35% (1994 est.)

Household income or consumption by percentage share:

lowest 10%: 4.1%
highest 10%: 25% (1994)

Inflation rate (consumer prices):

6.7% (1999 est.)

Labor force:

NA

Labor force - by occupation:

agriculture 67%, services 18%, industry 15% (1995 est.)

Unemployment rate:

NA%

Budget:

revenues: $35.8 billion
expenditures: $66.3 billion, including capital expenditures of $15.9 billion (FY98/99 est.)

Industries:

textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery

Industrial production growth rate:

4% (2000)

Investment (gross fixed):

6% (1999 est.)

Electricity - production:

448.6 billion kWh (FY98/99 est.)

Electricity - production by source:

fossil fuel: 80.34%
hydro:17.08%
nuclear: 2.38%
other: 0.2% (1998)

Electricity - consumption:

416.346 billion kWh (1998)

Electricity - exports:

130 million kWh (1998)

Electricity - imports:

1.575 billion kWh (1998)

Agriculture - products:

rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish

Exports:

$36.3 billion (f.o.b., 1999 est.)

Exports - commodities:

textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures

Exports - partners:

US 21%, UK 6%, Germany 6%, Hong Kong 5%, Japan 5%, UAE 4% (1998)

Imports:

$50.2 billion (f.o.b., 1999 est.)

Imports - commodities:

crude oil and petroleum products, machinery, gems, fertilizer, chemicals

Imports - partners:

US 10%, Belgium 7%, UK 6%, Germany 6%, Saudi Arabia 6%, Japan 6% (1998)

Debt - external:

$98 billion (March 1999)

Economic aid - donor:

$2.9 billion (FY98/99)

Currency:

1 Indian rupee (Re) = 100 paise

Exchange rates:

Indian rupees (Rs) per US$1 - 43.552 (January 2000), 43.055 (1999), 41.259 (1998), 36.313 (1997), 35.433 (1996), 32.427 (1995)

Fiscal year:

1 April - 31 March