Economy

India's Economy - on the fast track

For the period 2007-08 India’s GDP was Rs 46,93,602 crores (est). India became a US$ 1 trillion economy as of April 2007, as per India's Central Statistical Organization. Countries like the U.S., Japan, Germany, China, the U.K., France, Italy, Spain, Canada, Brazil and Russia have all breached the trillion-dollar GDP level in the past.

Countries with highest Gross Domestic Product in the world (2006):
Source: World Fact Book/ World Bank
ALL FIGURES IN US DOLLARS (TRILLIONS)

	Country	GDP
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15	USA China* Japan India Germany United Kingdom France Italy Russia Brazil South Korea Canada Mexico Spain Indonesia	$12.98 $10.00 $4.22 $4.042 $2.585 $1.903 $1.871 $1.727 $1.723 $1.616 $1.18 $1.165 $1.134 $1.07 $0.935

Note:
- * China may have overstated their figures by as much as 25%
- Purchasing Power Parity (PPP) involves the use of international dollar weights applied to quantities of goods and services produced in a given economy

The per capita income at current prices rose to $728 in 2006-07 up from $534 in 2004-05 from $446 in the previous year. As per PPP, India’s $3,700 per capita income of 2006-07 compares with U.S. $39,710, Japan $30,040, Germany $27,950 and China $5,530. India's Unemployment rate (2006 est.) was at 7.8%

India’s Labor force of 509.3 million (2006 est.) by occupation is divided as:
Agriculture: 60%
industry: 12%
services: 28%

India's GDP growth in Rupee terms
Source: Reserve Bank of India
(At current prices, in Rs. Cr.)

1997-98	2002-03	2007-08
Rs. 13,90,148 Cr.	Rs. 22,36,128 Cr.	Rs 46,93,602 Cr.

Financial Year	Rs.
2007-08 2006-07 2005-06 2004-05 2003-04 2002-03	29,786 27,784 25,696 23,890 22,413 20,996

India has the second largest GDP among emerging economies, based on purchasing power parity (PPP). India’s average annual GDP growth rate in terms of PPP for the last 33 years has been a decent 4.9 per cent. This indicates a sustained growth in the economy. Though the growth rate is lower than that in China (8.6 per cent), it is still higher than the average growth rate in 1965-98 of 2.6 per cent in USA and 2.1 per cent in Britain and 2.5 per cent in Germany.

The top five Indian companies
Source: Ranked in the Fortune 500 globally, July 2005

Companies	Comment
Indian Oil	Ranked 170 in the world
Reliance Industries	Ranked 417 in the world
Bharat Petroleum	Ranked 429 in the world
Hindustan Petroleum	Ranked 436 in the world
ONGC	Ranked 454 in the world

India has 5 companies in the Fortune 500 list, compared to 15 companies from China.

The economic growth levels have been achieved with a sustainable current account deficit, stable inflation rate, a rise in the domestic savings rate as a percent of GDP and a lower fiscal deficit.

India's Private Sector accounts for 75 percent of its GDP. Private sector investment has responded vigorously to the Government policy of promoting competition, removing policy distortions and hurdles, and improving access to factors of production such as technology and capital. With domestic industry developing an increasingly global focus, the Indian corporate sector has expanded capacity and upgraded technology. Simultaneously, it has been clocking higher sales and profits.

The regulatory framework India has made sweeping reforms in policies relating to virtually every sector of the economy-trade, industry, foreign investment, finance, taxation and public sector. These reforms have succeeded in large ways in achieving macro economic stabilization. The economy is now clearly on the path of global integration, accelerated growth, improved productivity, innovation and international competitiveness.