Economic Conditions of India

India has emerged as the fastest growing major

economy in the world and is expected to be
one of the top three economic powers of the
world over the next 10-15 years, backed by its
strong democracy and partnerships.

 The economy of India is a

developing mixed economy. It is the
world's seventh-largest economy by
nominal GDP and the third-largest by
purchasing power parily (PPP).

 The country ranks 139th in per capita

GDP (nominal) and 119 in per capita
GDP (PPP) as of 2018
  Since 2014, India's economy has
been the world’s fastest growing major
economy, surpassing China.

STATISTICS

GDP - 2.6 lakh crores USD (2017)

GDP growth rate – 6.8 % annual change (2017)
GDP per capita - 1,939.61 USD (2017)
GNI per capita - 7,060 PPP dollars (2017)
GDP Rank - 7th (nominal ; 2018)
3rd (PPP ; 2018)
GDP by sector - Agriculture: 15.87%
Industry: 29.73%
Services: 54.40%
(2018 – 19)
Inflation ( CPI ) - 3.05% (May 2019)
Ease of doing
Business - 77th (2019)

Market Size

 India has retained it’s position as the

third largest startup base in the world with
over 4,750 technology startups.

 India's foreign exchange reserves

were $ 429.911 billion (05 July 2019)

Recent Developments
 With the improvement in the
economic scenario, there have been
various investments in various
sectors of the economy.

 The M&A activity in India reached

record US$ 129.4 billion in 2018 while
private equity (PE) and venture
capital (VC) investments reached US$
20.5 billion.

 During 2018-19 (upto February

2019), merchandise exports from
India have increased 8.85% year-on-
year to US$ 298.47 billion, while
services exports have grown 8.54%
year-on-year to US$ 185.51 billion.
 Net direct tax collection for 2018-
19 had crossed ₹ 10 trillion (US$
144.57 billion) by March 16, 2019,
while goods and services tax (GST)
collection stood at ₹ 10.70 trillion
(US$ 154.69 billion) as of February
2019.

 India's Foreign Direct Investment

(FDI) equity inflows reached US$
409.15 billion between April 2000
and December 2018, with maximum
contribution from services, computer
software & hardware,
telecommunications, construction,
trading & automobiles.
  India's Index of Industrial
Production (IIP) rose 4.4 % year-on-
year in 2018-19 (upto January 2019)

 Consumer Price Index (CPI)

Inflation stood at 3.05% in May 2019.

 Net employment generation in the

country reached a 17 – month high in
January 2019.

Major Countries Investing in India

Main Investing Countries 2018, In%

Singapore - 38.3%
Mauritius - 18.2%
Netherlands - 8.8%
United States - 7.1%
Japan - 6.5%
United Kingdom - 3.1%
Germany - 1.7%
France - 1.0%
United Arab Emirates - 0.9%
Cyprus - 0.8%

Main Invested Sectors 2018, in %

Chemicals - 23.5%
Service sector - 22.7%
Computer Software
And hardware - 18.6%
Trade - 8.8%
Telecommunications - 8.7%
Auto mobile industry - 6.9%
Construction - 5.9%
Power - 3.6%
Drugs and Pharmaceuticals - 0.8%

External

Exports - $330 billion (2018-19)

Export goods - Agricultural product
12.8%
Fuels and Mining
Products 13.8%
Manufacturers 70.5%
Others 2.9%

Main export
Partners - European Union 17.4%
United States 16.1%
United Arab Emirates
9.6%
Hong Kong 5%
China 4.2%
Other 47.8%
Imports - $ 514 billion (2018-19)
Import goods - Agricultural products
8.1%
Fuels & mining products
30%
Manufacturers 51.7%
Other 10.2%
Main Import
Partners - China 16.6%
European Union 10.4%
United States 5.7%
United Arab Emirates
4.9%
Saudi Arabia 4.6%
Other 57.9%
FDI Stock - Inward : $ 386.35 billion
 Outward : $ 166.19
Billion (2018)

Net International
Investment
Position - - $ 436.4 billion (March
2019)

Public Finances

Public debt - ₹ 133.108 trillion

( US $ 1.9 trillion )
69.794% of GDP (2018)

Budget Balance - ₹ - 12.25 trillion

( US $ - 180 billion )
 ( 2018 )

Revenues - ₹ 39.29 trillion

( US $ 570 billion )
20.60% of GDP(2018)

Expenses - ₹ 52.03 trillion

( US $ 750 billion )
27.28% of GDP(2018)

Foreign Reserves - $ 429.911 billion

( 05 July 2019 )
Sumaiya Firdaus

M.B.A. ( Finance ) - III Semester

Financial Systems and Institutions

Submitted to :- Dr. Anu Kohli Ma'am