This section provides you with recent information on India’s economic performance, economic prospects, trade and investments, politics and international relations and infrastructure.
Following the economic reforms in the 1990s rapid economic development emerged. India became one of the fastest growing major economies. Foreign trade and direct investment inflows have tremendously increased as a result of the liberalisation of the economy. At the same time India remains a country with large disparities within its society, with a large informal economy. The emerging economy continues to face challenges on several aspects, including poverty and corruption. Economic growth in India accelerated in Fiscal Year (FY) 2015 and prospects for continued rapid growth are solid, notwithstanding unexpected delays in some economic reform. Inflation has stayed subdued, 5.0% on average in FY2015. Albeit the monsoon has been weak for two years in a row. Exports declined 18% in FY2015 as a result of lower commodity prices and weak global demand. Imports are estimated to have decreased as well (by 15.5%) in FY2015. Mainly caused by oil imports, which fell by more than 40%. Imports of capital goods such as machinery, transport equipment, and iron and steel remained weak, while imports of consumption goods stabilized. Higher service exports and remittances helped to narrow the current account deficit to an estimated 1.3% of GDP, as reported by the Asian Development Bank (ADB).
According to the Economist Intelligence Unit (EIU) India’s economic growth is estimated to be strong up, on average more than 5% up to 2050. This positive prospect is based on the assumption that policy will be implemented in order to pursue comprehensive economic reform, continue technical innovation and adopt best practices. Short-term growth is expected to continue well above 7% in 2016 and 2017, according to the Asian Development Bank (ADB). Main drivers for economic growth have been public investment and increased urban consumption. Private investment and rural consumption in India will be decisive to remain developing. This is key to counterbalance the weak prospect for global trade and slow recovery of most Western countries. Domestic demand, private investment and strengthening of the public banks’ capital are key to foster growth in 2017.
1.295 bln (2014)
|GDP at market prices||
$2.049 trillion (2014)
|Real GDP growth||
|GDP per capita||
|Doing Business in Index*||
130 out of 189 (2016)
76 out of 168 (2015)
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