Before we talk Indian Economy Facts. You must know that Indian economy is one of the fastest growing economies in the world.
India is the only country which after the independence has acquired the place of a fastest developing country in lesser time.
As per the scientific estimates in the upcoming 50 years can be amongst the most powerful nation in the world with the most dominating economy.
We bring a list of Indian Economy facts that you should know.
25 Indian Economy Facts That you Don’t Know Yet
Note: This topic is subject to be changed time to time, numbers, stats may vary, we have gathered information from various resources. This gives you a general interesting facts about Indian Economy.
1) India’s Index of Industrial Production (IIP):
India’s Index of Industrial Production (IIP) advanced by 0.1 percent year-on-year in February 2019, as against a rise of 1.4 percent year-on-year in January 2019.
The cumulative IIP growth for April 2018-February 2019 was 4.0 percent over the same period in 2017-18.
2) Value of Private Equity (PE):
The total value of Private Equity (PE)/Venture Capital (VC) investments grew 35 percent year-on-year in value terms to reach US$ 35.1 billion in 2018.
PE/VC investments worth US$ 8.5 billion were recorded across 182 deals in January-March 2019 which was also a landmark achieved by a growing economy.
3) Gross Domestic Product (GDP):
As per recent financial year 2018/19 India has the GDP rate of 7% and Indian GDP in current prices was $2690 billion and in future GDP is expected to reach about US$ 6 trillion by FY27 and achieve upper-middle income status on the back of digitization, glottalization, favorable demographics, and reforms.
4) Indian Economy stands at 3rd place in the World :
As per the PPP (Purchasing Power Parity) analysis, Indian Economy stands as the 3rd largest economy in the world with the contribution of 10,401 billion International dollars which makes India just after USA and China.
As per PPP data, India’s GDP accounts for 16% of total Asia’s GDP.
5) Foreign Direct Investment (FDI):
FDI equity inflows reached US$ 409.15 billion between April 2000 and December 2018, with maximum contribution from services, computer software, and hardware, telecommunications, construction, trading and automobiles by Multinational organization investing in the country which has indirectly boosted the Indian Economy with revenue generation and employment.
6) Prime Minister’s Employment Generation Programme (PMEGP):
PMEGP will be continued with an outlay of Rs 5,500 crore (US$ 755.36 million) for three years from 2017-18 to 2019-20, according to the Cabinet Committee on Economic Affairs (CCEA) which has provided a base to the Indian Economy.
It is one of the programme which can affect a lot on Economy, as we can say Economy is dependent on this.
7) India’s Foreign Exchange Reserve:
India’s foreign exchange reserve rose up to US$ 391.33 from US$ 389.059 billion in July 2017 and in FY 18/19 it has gone up to US$405.1434 billion thus making India amongst the topper in developing nations as per growing reserves and reflecting the growth in the Indian Economy.
8) Agriculture Sector
India Economy is largely dependent upon the Agriculture sector.
As this sector contributes employment to over 50% of its population the main reason being behind this is India has an agriculture-friendly land and its 70% of the population lives in villages.
They contributes for the economy by cultivating and contributing their share in GDP growth.
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9) India focusing on sources to generate energy:
India is also focusing on renewable sources to generate energy.
It is planning to achieve 40 percent of its energy from non-fossil sources by 2030 which is currently 30 percent.
It also have plans to increase its renewable energy capacity from to 175 GW by 2022 thus contributing a lot in the further Indian economy.
10) India ranked 129th out of 186 in the Economic Freedom Index:
India has been ranked on 129th position out of 186 with an aggregate score of 55.2 with an increase of 0.7 points overall.
This Index is solely dependent upon the country making improvement in the field of judicial effectiveness, business freedom, monetary freedom, etc.
11) India is known as the “Nation of Young’s” :
India is called the nation of the youngest people amongst the countries. India has the maximum number of young people at the age of 25.
The youths are always estimated to be the future of a country’s economy as they in future hold various positions and contribute to strengthening the economy.
12) Indian States Prosperity:
As we all know that if we elaborate our business more we earn more so the States that export internationally and trade with other States were found to be much richer than the states that do apply these business trade policies.
Such correlation is stronger between prosperity and international trade.
13) Clothing Incentive Package:
Clothing industries have played an important role in increasing the Indian economy. To promote exports of ready-made garments and made Ups, Government of India increased Merchandise Export from India Scheme (MEIS) rates from 4 to 6 percent under the Mid-Term Review of Foreign Policy 2015-20.
In the future, India’s apparel exports are expected to increase considerably. Total exports of textiles and apparel are expected to touch US$ 82 billion by 2021 with a CAGR of 12.06 percent.
14) Indian Spices Globally demanded :
India is the world’s largest producer and exporter of spices. It also accounts for half of the trading in spices globally Increased global demand for turmeric, especially in the pharmaceutical sector, drove its exports to attain figures of 1,16,500 tonnes in volume and crossed Rs 1,241 crores (approx.) in value terms in 2016-17.
15) Weather’s impacts on agricultural yields:
The survey captures the footprints of climate change on the Indian territory and the consequent adverse impact on agricultural yields.
Extreme temperature increases and deficiency in rainfall have been captured on the Indian map and the geographical changes in agricultural yields are brought out from such data.
The impact was found to be twice as large in non-irrigated areas as in irrigated ones which affect the agriculture and as a whole, the Indian economy is being affected year after year.
As India is an agricultural country so India’s economies one of the greater parts relies on agriculture.
16) The large increase in registered indirect and direct taxes :
A preliminary analysis of the Goods and Services Tax (GST) data reveals that there has been a 50% increase in the number of indirect taxpayers, According to the Economic Survey, there were 9.8 million unique GST registrants, an increase of 3.4 million compared to the previous tax regime.
While Maharashtra, UP, Tamil Nadu and Gujarat have the number of GST registrants, West Bengal has seen the largest increase in the number of tax registrants.
The Survey noted that five States — Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Telangana — account for 70% of India’s exports.
17) Some Progress Tackling Corruption:
Corruption was one of the major backlog affecting progress in the nation but recently nation has worked on it and taken the initiative and India now ranks an impressive 23rd among all countries in the Global Competitiveness Index for the perceived efficiency of public spending.
India again moves up the report’s rankings for the quality of institutions, continuing recovery in this area and boosting the Indian Economy
18) India’s 29 States Common Market.
Opportunities for corruption have long been created by the confusing patchwork of taxes across India’s 29 states, which also cause delays as goods cross state borders.
In July 2019, the system changed: a new goods and services tax means the 29 states are now a common market. The new system is expected to boost efficiency, growth, and India’s tax take.
Despite some technical glitches with the new online tax collection system, early signs appear promising.
19) Growth needs to be more inclusive:-
India ranked a disappointing 60th among the 79 developing economies assessed in the World Economic Forum’s latest Inclusive Development Index.
The rise in inequality is compromising the pace at which India is lifting people out of extreme poverty.
About one-third of the world’s population living on under US$1.90 live in India – some 224 million people.
Oxfam calculates that if India were merely to stop inequality from growing further, it could lift 90 million more people out of extreme poverty by 2019.
20) India needs to get more women working:
India has made modest progress in closing its gender gap over the last decade, rising from 98th to 87th in the World Economic Forum’s Gender Gap Report, which aggregates a range of indicators from health and education to economic and political participation.
However, it ranks a lowly 135th out of 144 on women’s labor force participation, just behind Yemen.
India’s economy would have much to gain from getting more women into the workforce.
21) A push for soft power:-
India is making a conscious effort to translate its growing economic clout into ‘soft power’ on the world stage – for example by promoting International Yoga Day and building more diplomatic missions and cultural centres.
India’s space agency is planning a second mission to Mars, while the international outreach of Bollywood films is growing: Dangal recently broke box office records in China for a non-Hollywood movie.
22) Second fastest growing economy in the service sector
India has one of the fastest growing service sectors in the world with an annual growth rate above 9% since 2001, which contributed to 57% of GDP in 2012–13. … India is the second-largest start-up hub in the world with over 3,100 technology start-ups in 2018–19.
Today, India is considered as the world’s sixth-largest economy by nominal GDP and the third-largest by purchasing power parity.
23) Indian Railways (Biggest service sector employer)
Though it is often said that Indian Railways is the largest employer in the world, but it seems it is not.
The organization is ranked at the eighth place in the list of the world’s biggest employers.
24) Tourism, a rising sector for rapid growth in Indian Economy
Tourism in India is one of the most rapidly growing sectors in India and in recent years it has become the most effective contributor in the economy.
Indian tourism generated revenue of Rs 16.91 lakh crores (approx.) which is around 9.2% of Indian GDP.
25) Only 2% of the total Indian population pays Income tax
Out of the total Indian population of around 1 billion, there are 37 million people who file tax returns every year in India and out of them, only 10 million people are exempted in them only 27 million people pay taxes which is just slightly more than 2% of the total population of the country.
Highlights of the Indian Economy Facts:
Here is the quick recap of the facts about Indian Economy mentioned above.
1) India’s Index of Industrial Production (IIP)
2) Value of Private Equity (PE)
3) India’s gross domestic product (GDP)
4) Indian Economy stands at 3rd place in the World.
5) Foreign Direct Investment (FDI) boosting the Indian Economy
6) Prime Minister’s Employment Generation Programme (PMEGP)
7) India’s Foreign Exchange Reserve
8) Agriculture sector, one of the main source of the Indian Economy.
9) India focusing on sources to generate energy.
10) India ranked 129th out of 186 in the Economic Freedom Index
11) India is known as the “Nation of Young’s”
12) Indian States’ prosperity is correlated with their international and inter-State trade.
13) Clothing Incentive Package boosted exports of ready-made garments resulting in an increase in India economy
14) Indian Spices Globally demanded
15) Weatherly impacts on agricultural yields thus directly affecting the Economy of the nation.
16) The large increase in registered indirect and direct taxes
17) Some progress tackling corruption.
18) India’s 29 States are now a common market.
19) Growth needs to be more inclusive.
20) India needs to get more women working
21) A push for soft power
22) India second fastest growing economy in the service sector.
23) Indian Railways (Biggest service sector employer)
24) Tourism, a rising sector for rapid growth in Indian Economy.
25) Only 2% of the total Indian population pays Income tax.
These are the 25 facts about Indian Economy which are mostly unknown but contribute a lot to the our economy.
Indian Economy is the only economy which is estimated to be topping the world in future as it comprises of maximum youths, agriculture lands and many factors which results in shaping a better future for a country’s economy.