* India's per capita income increased at only around 1% annualized rate from 1950 - 1980 * In the late 2000s, India's growth has reached 7.5%, which will double the average income in a decade. * The highest annualized 1999-2008 growth rates are for states Gujarat (9.6%), Haryana (9.1%), or Delhi (8.9%) and lowest Bihar (5.1%), Uttar Pradesh (4.4%), or Madhya Pradesh (6.5%). * India is the eleventh-largest economy in the world and the fourth largest by purchasing power parity adjusted exchange rates (PPP). * On per capita basis, it ranks 128th in the world or 118th by PPP. * The economic growth has been driven by the expansion of services that have been growing consistently faster than other sectors. * Although living standards are rising fast, 75.6% of the population still lives on less than US$2 a day * Two-thirds of the Indian workforce earn their livelihood directly or indirectly through agriculture in rural villages. * As a proportion of GDP, towns and cities make over two thirds of the Indian economy. * India ranked 133rd in Ease of Doing Business Index, which is setback as compared with China 89th and Brazil 129th.
* India ranks second worldwide in farm output.
* Agriculture and allied sectors like forestry, logging and fishing accounted for 18.6% of the GDP in 2005 * Employed 60% of the total workforce
* Despite a steady decline of its share in the GDP, is still the largest economic sector * India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper. * It also has the world's largest cattle population (193 million). * It is the second largest producer of wheat, rice, sugar, groundnut and inland fish. * It is the third largest producer of tobacco.
* India accounts for 10% of the world fruit production with first rank in the production of banana and sputa.
3. Industrial output
* India is fourteenth in the world in factory output.
* Manufacturing sector in addition to mining, quarrying, electricity and gas together account for 27.6% of the GDP and employ 17% of the total workforce. * Economic reforms introduced after 1991 brought foreign competition, led to privatisation of certain public sector industries, opened up sectors hitherto reserved for the public sector
* India is fifteenth in services output.
* Service industry employs 23% of the work force and is growing quickly * It has the largest share in the GDP, accounting for 57% in 2010 up from 20% in 1950. * India's IT industry, despite contributing significantly to its balance of payments, accounts for only about 1% of the total GDP or 1/50th of the total services. * Employment by IT and ITES sectors is estimated at around 1.3 million as on March 2006. * Indian IT-ITES is estimated to have helped create an additional 3 million job opportunities through indirect and induced employment.
5. Banking and finance
* Currently, India has 88 scheduled commercial banks (SCBs) — 28 public sector banks, 29 private banks and 31 foreign banks. * A combined network of over 53,000 branches and 17,000 ATMs * The public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
6. Indian Growth factors
India’s GDP is expected to grow by 8.5% this year, and could grow even faster. Chetan Ahya and Tanvee Gupta of Morgan Stanley, an investment bank, predict that India’s growth will start to outpace China’s within three to five years. China will rumble along at 8% rather than double digits; India will rack up successive years of 9-10%. For the next 20-25 years, India will grow faster than any other large country, they expect. Other long-range forecasters paint a similar picture.
Several factors weigh in India’s favour. The first is...