Population:1.107 bn, Urban 27.8%.
(2005-06)
India’s urban population is 285 million of a total population of 1.07 billion, the 2nd highest in the world. 35 cities have a population of over 1 million.
According to a study by the McKinsey Global Institute (MGI), India’s consumer market will be the world’s fifth largest (from twelfth) in the world by 2025.
Geography
India is the world’s 7th largest country, with an area of approximately 3.29 sq. million kms.
India has an Ideal geographic location: Halfway between Europe and Australasia
Halfway between Africa and Asia
Ideal crossroad between major markets
Supported by huge home market
Capital--New Delhi (pop. 12.8 million, 2001 census). Other major cities--Mumbai, formerly Bombay (16.4 million); Kolkata, formerly Calcutta (13.2 million); Chennai, formerly Madras (6.4 million); Bangalore (5.7 million); Hyderabad (5.5 million); Ahmedabad (5 million); Pune (4 million).
Few Fast Facts
Large and growing middle class of 325-350 million with disposable income for consumer goods.
Younger population – 53% less than 25 years
India adds about nine million telephone subscribers every month. The total number of telephone connections reached 281.62 million at the end of January 2008 as compared to 272.88 million in December 2007. The total wireless subscribers (GSM, CDMA & WLL(F)) base stood at 242.40 million at the end of January 2008.
Tourism is the 2rd largest foreign exchange earner, contributing to 5.6% of GDP, supporting 5.8% of total employment and generating 10.8% of the total exports from the country. 87% of foreign tourist travel has been by air.
Estimated to be a US$ 350 billion industry, the Indian retail sector is growing at a three-year CAGR of 46.64 per cent.
The Indian pharmaceutical industry, consistently growing at 9.5 per cent in the last 5 years, could zip at 13.6 per cent between 2006 and 2010 and reach a market size of US$ 9.48 billion by 2010 from its present level of about US$ 5.7 billion.
India is the second largest two-wheeler market, fourth largest commercial vehicle market, and 11th largest passenger car market in the world.
India is the largest producer of mango, banana, milk, dairy products, coconuts, cashew nuts, ginger, turmeric and black pepper. It is also the second largest producer of rice, wheat, groundnuts, sugar, fruits and vegetables.
Healthcare delivery is one of the largest service-sector industries in India. The country will spend US$ 45.76 billion on healthcare in the next five years.
International Iron and Steel Institute (IISI) have ranked India as the seventh largest steel producer in the world with an overall production of about 40 million tonnes in 2006.
The Indian IT-BPO revenue aggregate is expected to grow by over 33 per cent and reach USD 64 billion by the end of FY2008.
Macro Economic Indicators
The economy of India is the fourth largest in the world as measured by purchasing power parity (PPP).
Gross domestic product (GDP) 2006-07: INR 37,435 billion
In 1999, Goldman Sachs has predicted that India's GDP in current prices will overtake France and Italy by 2020, Germany, UK and Russia by 2025 and Japan by 2035. By 2035 it is expected to reach as 3rd largest economy of the world behind US and China.
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Annual Macroeconomic Indicators |
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|
% change at a glance |
|
|
|
2001-02 |
2002-03 |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08E |
|
GDP at factor cost(const.prices) |
5.8 |
3.8 |
8.5 |
7.5 |
9 |
9.4 |
9.4 |
|
Agriculture |
6.3 |
-7.2 |
10 |
- |
6 |
2.7 |
3.1 |
|
Services |
2.7 |
7.1 |
7.4 |
9.8 |
9.6 |
10.9 |
9.5 |
|
Manufacturing |
2.9 |
6 |
7.4 |
9.1 |
9.1 |
12.5 |
10.2 |
|
Exports |
-0.4 |
20.2 |
20.9 |
30.7 |
23.4 |
22.5 |
NA |
|
Imports |
3 |
19.3 |
27.1 |
42.5 |
33.8 |
27.7 |
NA |
Trade
Exports (FY2006-07) - $126 billion; agricultural products, engineering goods, precious stones, cotton apparel and fabrics, gems and jewelry, handicrafts, tea.
Imports (FY2006-07) - $190 billion; petroleum, machinery and transport equipment, electronic goods, edible oils, fertilizers, chemicals, gold, textiles, iron and steel.
Major trade partners--U.S., China, EU, Russia, Japan.
Structure of the Indian Economy
Post liberalization in 1991, there has been a shift in the structure of the Indian economy. Since then services has been the main driver of GDP. Both services and manufacturing have grown at the expense of agriculture.
|
Growth of GDP at factor cost by economic activity (at constant 1999-2000 prices) |
|
Activity |
Growth |
|
% share of GDP |
|
|
|
2003-04 |
2004-05 |
2005-06 |
2006-07 |
|
2003-04 |
2004-05 |
2005-06 |
2006-07 |
|
|
|
P* |
Q* |
A* |
|
|
P* |
Q* |
A* |
|
Agriculture, forestry & fishing |
10 |
0 |
6 |
2.7 |
|
21.7 |
20.2 |
19.7 |
18.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Industry |
7.4 |
9.8 |
9.6 |
10 |
|
25.6 |
26.1 |
26.2 |
26.4 |
|
Mining & quarrying |
3.1 |
7.5 |
3.6 |
4.5 |
|
2.2 |
2.2 |
2.1 |
2 |
|
Manufacturing |
6.6 |
8.7 |
9.1 |
11.3 |
|
15 |
15.1 |
15.1 |
15.4 |
|
Electricity, Gas & Water |
4.8 |
7.5 |
5.3 |
7.7 |
|
2.3 |
2.3 |
2.2 |
2.2 |
|
Services |
8.5 |
9.6 |
9.8 |
11.2 |
|
52.7 |
53.7 |
54.1 |
55.1 |
|
Trade, hotels & communication |
12.1 |
10.9 |
10.4 |
13 |
|
25 |
25.8 |
26.1 |
27 |
|
Financing, insurance,
real estate & business services |
5.6 |
8.7 |
10.9 |
11.1 |
|
13.5 |
13.5 |
1.8 |
14 |
|
Community, social & personal services |
5.4 |
7.9 |
7.7 |
7.8 |
|
14.3 |
14.4 |
14.2 |
14.1 |
|
GDP at factor cost |
8.5 |
7.5 |
9 |
9.2 |
|
100 |
100 |
100 |
100 |
|
* P - Provisional Q - Quick estimate, A - Advanced estimate |
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Source: RBI 2006, GOVT OF INDIA 2006, CSO 2006 |
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