IntroductionIndia, officially Republic of India, it is also sometimes called Bharat, its ancient name. India's land frontier (c.9,500 mi/15,290 km long) stretches from the Arabian Sea on the west to the Bay of Bengal on the east and touches Pakistan (W); China, Nepal, and Bhutan (N); Bangladesh, which forms an enclave in the northeast; and Myanmar (E). New Delhi is India's capital and Mumbai (formerly Bombay) its largest city. India is a land of great cultural diversity, as is evidenced by the enormous number of different languages spoken throughout the country. Although Hindi (spoken in the north) and English (the language of politics and commerce) are used officially, more than 1,500 languages and dialects are spoken. Economically, India often seems like two separate countries: village India, supported by traditional agriculture, where tens of millions live below the poverty line; and urban India, one of the most heavily industrialized areas in the world, with an increasingly middle-class population and a fast-growing economy (and also much poverty). Agriculture (about 50% of the land is arable) makes up some 20% of the gross domestic product (GDP) and employs about 60% of the Indian people. Vast quantities of rice are grown wherever the land is level and water plentiful; other crops are wheat, sugarcane, potatoes, pulses, sorghum, bajra (a cereal), and corn. Cotton, tobacco, oilseeds, and jute are the principal nonfood crops. There are large tea plantations in Assam, Karnataka, Kerala, and Tamil Nadu. The opium poppy is also grown, both for the legal pharmaceutical market and the illegal drug trade; cannabis is produced as well.India's geography and geology are climatically pivotal: the Thar Desert in the northwest and the Himalayas in the north work in tandem to effect a culturally and economically break-all monsoonal regime. As Earth's highest and most massive mountain range, the Putain Pende system bars the influx of frigid katabatic winds from the icy Tibetan Plateau and northerly Central Asia. Most of North India is thus kept warm or is only mildly chilly or cold during winter; the same thermal dam keeps most regions in India hot in summer. Though the Tropic of Cancerthe boundary between the tropics and subtropicspasses through the middle of India, the bulk of the country can be regarded as climatically tropical. As in much of the tropics, monsoonal and other weather patterns in India can be wildly unstable: epochal droughts, floods, cyclones, and other natural disasters are sporadic, but have displaced or ended millions of human lives.National Emblem of India

Culture & LanguageThe culture of India is the way of life of the people of India. India's languages, religions, dance, music, architecture, food, and customs differ from place to place within the country. The Indian culture, often labeled as an amalgamation of several cultures, spans across the Indian subcontinent and has been influenced by a history that is several millennia old. Many elements of India's diverse cultures, such as Indian religions, yoga and Indian cuisine, have had a profound impact across the world. The Indian constitution recognizes 15 regional languages (Assamese, Bengali, Gujarati, Hindi, Kannada, Kashmiri, Malayala, Marathi, Oriya, Punjabi, Sanskrit, Sindhi, Tamil, Telugu, and Urdu). Ten of the major states of India are generally organized along linguistic lines. India is the birthplace of Hinduism, Buddhism, Jainism and Sikhism, collectively known as Indian religions. Indian religions are a major form of world religions along with Abrahamic ones. Today, Hinduism and Buddhism are the world's third and fourth-largest religions respectively, with over 2 billion followers altogether, and possibly as many as 2.5 or 2.6 billion followers. India is one of the most religiously diverse nations in the world, with some of the most deeply religious societies and cultures. Religion plays a central and definitive role in the life of many of its people. According to a 2001 census of India, the religion of 80% of the people is Hinduism. Islam is practiced by around 13% of all Indians. The country had over 23 million Christians, over 19 million Sikhs, about 8 million Buddhists and about 4 million Jains. Sikhism, Jainism and especially Buddhism are influential not only in India but across the world. Christianity, Zoroastrianism, Judaism, and the Bah' Faith are also influential but their numbers are smaller. Atheism and agnostics also have visible influence in India, along with a self-ascribed tolerance to other people.History of IndiaThe historical discussion that follows deals, until Indian independence, with the Indian subcontinent, which includes the regions that are now Bangladesh and Pakistan, and thereafter concentrates on the history of India. India is a land of ancient civilization. India's social, economic, and cultural configurations are the products of a long process of regional expansion. Indian history begins with the birth of the Indus Valley Civilization and the coming of the Aryans. These two phases are usually described as the pre-Vedic and Vedic age. Hinduism arose in the Vedic period.The fifth century saw the unification of India under Ashoka, who had converted to Buddhism, and it is in his reign that Buddhism spread in many parts of Asia. In the eighth century Islam came to India for the first time and by the eleventh century had firmly established itself in India as a political force. It resulted into the formation of the Delhi Sultanate, which was finally succeeded by the Mughal Empire, under which India once again achieved a large measure of political unity.It was in the 17th century that the Europeans came to India. This coincided with the disintegration of the Mughal Empire, paving the way for regional states. In the contest for supremacy, the English emerged 'victors'. The Rebellion of 1857-58, which sought to restore Indian supremacy, was crushed; and with the subsequent crowning of Victoria as Empress of India, the incorporation of India into the empire was complete. It was followed by India's struggle for independence, which we got in the year 1947.

Map of India

Demographics of IndiaIndias populations profileIndia is a country of ancient times and unlimited natural resources. Its ancient culture, the rivers, mountains and vegetation, not to forget its exotic spices, make the country a wonderful place to visit or to live. The demographics of India are remarkably diverse. India is the second most populous country in the world, with over 1.2 billion people (latest estimate, 2013), more than a sixth of the world's population. Already containing 17.31% of the world's population, India is projected to be the world's most populous country by 2025, surpassing China, its population exceeding 1.6 billion people by 2050.Data Below will show you the Population density (people per sq. km of land area) and total population throughout the year in India:Year Population density (people per sq. km of land area) Total Population (Blns)

1961 154.25 0.46

1962 157.39 0.47

1963 160.64 0.48

1964 164.00 0.49

1965 167.48 0.50

1966 171.08 0.51

1967 174.80 0.52

1968 178.65 0.53

1969 182.63 0.54

1970 186.74 0.56

1971 190.98 0.57

1972 195.35 0.58

1973 199.85 0.59

1974 204.50 0.61

1975 209.28 0.62

1976 214.21 0.64

1977 219.27 0.65

1978 224.45 0.67

1979 229.73 0.68

1980 235.09 0.70

1981 240.52 0.72

1982 246.01 0.73

1983 251.58 0.75

1984 257.22 0.76

1985 262.93 0.78

1986 268.72 0.80

1987 274.56 0.82

1988 280.45 0.83

1989 286.35 0.85

1990 292.24 0.87

1991 298.11 0.89

1992 303.97 0.90

1993 309.80 0.92

1994 315.64 0.94

1995 321.47 0.96

1996 327.31 0.97

1997 333.13 0.99

1998 338.94 1.01

1999 344.75 1.03

2000 350.55 1.04

2001 356.35 1.06

2002 362.14 1.08

2003 367.88 1.09

2004 373.55 1.11

2005 379.10 1.13

2006 384.53 1.14

2007 389.85 1.16

2008 395.08 1.17

2009 400.29 1.19

2010 405.50 1.21

2011 410.72 1.22

2012 415.95 1.24

2013 421.14 1.25

Indicator for above data specifics: Population density (people per sq. km of land area)Population density is midyear population divided by land area in square kilometers. Population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin. Land area is a country's total area, excluding area under inland water bodies, national claims to continental shelf, and exclusive economic zones. In most cases the definition of inland water bodies includes major rivers and lakes.

Total Population (Blns)Total population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin. The values shown are midyear estimates.

Data source: Word BankThe U.S. Census Bureau and the UN Population Division (UNPD) offer broadly consistent pictures of Indias population profile for the year 2030. Both the Census Bureau and the UNPDs medium variant projections envision India 2030 as a country with roughly 1.5 billion people, implying an intervening rate of population growth averaging about 1.1% per year. Twenty years from now, India will still be a rather youthful country, with 8%9% of its population 65 years of age or older and a median age of 3132 years (compared to roughly 13% and 37 years, respectively, for the United States today). About 68% of India 2030s population will comprise men and women of working age (conventionally defined as the 1564 group), compared with 65% today. This means that the working-age manpower is set to grow more rapidly than overall population in the decades immediately ahead, by about 1.3% per annum on average. By 2030, UNPD anticipates Indias life expectancy to reach 70 years, and by its projections, the India of 2030 will be about 40% urban, up from an estimated 30% today.The population of India represents 17.99 percent of the worlds total population which arguably means that one person in every 6 people on the planet is a resident of India. This data provides content for - India Population was last refreshed on Friday, November 21, 2014. In 2050 Indias population is projected to be 1.69 billion Chinas will be 1.31 billion.India has experienced extraordinary population growth: between 2001 and 2011 India added 181 million people to the world, slightly less than the entire population of Brazil. But 76 per cent of Indias population lives on less than US$2 per day (at purchasing power parity rates). India ranks at the bottom of the pyramid in per capita-level consumption indicators not only in energy or electricity but in almost all other relevant per capita-level consumption indicators, despite high rates of growth in the last decade. Much of Indias population increase has occurred among the poorest socio-economic percentile. Relatively socio-economically advanced Indian states had a fertility rate of less than 2.1 in 2009 less than the level needed to maintain a stable population following infant mortality standards in developed nations. But in poorer states like Bihar, fertility rates were nearer to 4.0. Does this growth mean India can rely on the demographic dividend to spur development? This phenomenon, which refers to the period in which a large proportion of a countrys population is of working age, is said to have accounted for between one-fourth and two-fifths of East Asias economic miracle as observed late last century.But India is not East Asia. Its population density is almost three times the average in East Asia and more than eight times the world average of 45 people per square kilometer. If India has anywhere near 1.69 billion people in 2050, it will have more than 500 people per square kilometer. Besides, in terms of infrastructure development India currently is nowhere near where East Asian nations were before their boom. In terms of soft to hard infrastructure, spanning education, healthcare, roads, electricity, housing, employment growth and more, India is visibly strainedAs China is known as the most populated country and to survive in future the policy makers have failed miserably on all measurable counts. If one compares India to China this becomes clear. While Chinas one-child policy has been criticized as against human dignity and rights and there is no denying that such measures should be avoided as far as possible the history of human civilization teaches us that extreme situations call for extreme actions. There will be ample time for multiple schools to have their post-mortems on the success and failure of the one-child policy, but it has helped China to control its population by a possible 400 million people.

Above chart shows the prediction that Indias population will increase by 2050. To control the population government of India have taken some predictive initiatives: In 1980s Indian planners aimed to achieve the replacement fertility rate of 2.1 by 2000 but failed. They came up with a new National Population Policy (NPP) in 2000 and aimed to reach the target by 2010 but could only reach to about 2.8. Alongside, they also introduced the idea of "Two-Child Norm" which is a target-oriented policy encouraging parents to limit their families to two children and creates disadvantages for couples with more than two children.The fight against population momentum, the biggest factor contributing to population growth, demands delaying all pregnancies. It provides three clear strategies:1. Discourage and prevent child marriages.2. Encourage postponing first pregnancy by two years after marriage3. Increase availability of contraceptives for spacing birthsThe next dominant cause is unwanted and unplanned pregnancies, measured as unmet need for contraceptives. Almost a quarter births take place due to poor availability of contraceptives. Condom awareness campaign should not be limited to HIV and STD prevention only. The young reproductive population needs range of contraceptive choices to prevent pregnancies more than the one time sterilization option.

Infrastructure Development and accelerating other developments of IndiaInfrastructure sector plays a very significant role in economic development. The growth of this sector is necessary to create employment opportunities, mobilize resources, generate revenue, which will help reviving the economy. India has proposed a lot of projects to develop their infrastructure for better economic and living facilities in India. Infrastructure development has a crucial role to play if India is to sustain its high growth, which must become more inclusive as the country matures. While there is large variation in the state of rural infrastructure among developing countries, most lower-income developing countries suffer severe rural infrastructure deficiencies. Deficiencies in transportation, energy, telecommunication and related infrastructure transform into poorly functioning domestic markets with little spatial and temporal integration, low price transmission and weak international competitiveness.Despite the backbreaking reality that development of rural infrastructure is important to promote growth and poverty alleviation and high economic rates of return to investments in rural infrastructure, neither national governments nor international aid agencies seem to prioritize investments in the construction of new infrastructure and maintenance of existing infrastructure. Much of the required investment is of a public goods nature and thus most of the infrastructure investments must come from public sources, while public- private partnership should be pursued when appropriate. Failure to accelerate investments in rural infrastructure will make a mockery of efforts to achieve the Millennium Development Goals in poor developing countries while at the same time severely limit opportunities for these countries to benefit from trade liberalization, international capital markets and other potential benefits offered by globalization.Rural infrastructure and agricultural developmentThe importance of good infrastructure for agricultural development in developing economies is widely recognized. In one of the technical background documents for the World Food Summit, held some 12 years ago, it is concluded that Roads, electricity supplies, telecommunications, and other infrastructure services are limited in all rural areas, although they are of key importance to stimulate agricultural investment and growth (Food and Agriculture Organization of the United Nations (FAO) 1996, chapter 10, p.15). The document further argues that Better communications are a key requirement. They reduce transportation cost, increase competition, reduce marketing margins, and in this way can directly improve farm incomes and private investment opportunities (ibid). Investment in infrastructure is essential to increase farmers access to input and output markets, to stimulate the rural non-farm economy and vitalize rural towns, to increase consumer demand in rural areas and to facilitate the integration of less-favored rural areas into national and international economies. In India, Gross Domestic Product during 2000-05 grew annually by 7% whereas the average annual growth rates for the agriculture and industrial sector during the same period was 2.5%and 7.5% respectively. The overall average annual growth rate for low income economies taken together during the same period for GDP, agriculture and industry was6.1%,3.0% and 6.9% respectively (World Development Indicators-2007). One of the important reasons for this lopsided growth performance of agriculture sector is the lack of proper infrastructural facilities in rural areas.

Rural infrastructure and poverty alleviationThe impact of rural infrastructure on poverty level is significant particularly in the context of achieving Millennium Development Goals (MDG) in the developing countries whose first and the most fundamental goal is the halving of extreme poverty by2015 (where the comparison is between 1990 and 2015).Any investment on infrastructure leads to an increase in the real income in both agriculture and non-agriculture sectors leading to a decline in the poverty level. A direct contribution to poverty alleviation is being made by a reduction in the consumption level with the provision of essential services like health & housing facilities, access to safe drinking water and basic sanitation, particularly in the initial stage of development. Provision of micro-credit along with some of the basic infrastructure facilities can be quite successful in generating incomes in both small-scale agriculture and, in particular, in small-scale nonagricultural rural enterprises and hence exerting as a catalyst in the poverty alleviation. The introduction of fixed and mobile phones to the rural poor by Md. Yunus, the pioneer of Grameen Bank and a revolutionary in the field of micro-credit, has provided new opportunities for income generation and poverty reduction in Bangladeshis a well-documented fact now. In India, a large disparity in rural and urban poverty is found. This disparity is even more in those states where the dualistic character of rural-urban divide is of severe nature; like in Bihar the population below poverty line in 2004-05 on the basis of URP (uniform recall period) consumption in rural area was 42.1%against the urban figure of 34.6%. All these clearly call for investment in the rural infrastructure development.Rural infrastructure and international competitivenessThe potential benefits of trade liberalization and globalization in a developing economy like India where majority of the population lives in rural areas and agriculture still plays an important role cant be obtained without making significant investments in rural infrastructure and related institutions such as roads, transportation, and market institutions. It will be only after that the low income developing countries and low income communities will be fully integrated into the process of economic globalization. Chinas recent experience is a burning example in this direction. During the reform period the dualistic character of China has been further strengthened with a large share of rural population living in remote areas with meager infrastructure facilities has further fallen into poverty whereas people in urban areas and rural areas with good infrastructure facilities have been benefited with the opening of the economy by generating more trade. Such a development is likely to create social instability in the long run. Hence, it can easily be said that one of the key determinants of international competitiveness would be the availability of adequate and efficient domestic infrastructure. Better domestic infrastructure could contribute to international competitiveness through at least three channels: (1) improving price competitiveness; (2) improving non-price competitiveness; and (3) attracting foreign direct investments (FDI).Upcoming projects for Infrastructure developmentOn infrastructural front, the Railway Budget 2014 has proposed to set up a Diamond Quadrilateral rail network connecting major metros apart from announcing a bullet train. The Rail Budget has also proposed to attract private domestic investment and FDI in infrastructure.

Carrying forward Narendra Modis development mantra of Ek Bharat, Shreshtha Bharat, Finance Minister Arun Jaitley while presenting his maiden Budget announced a series of measures to push the infrastructure sector.To create infrastructure in agriculture sector, the Union Budget has proposed to raise the corpus of Rural Infrastructure Development Fund (RIDF) by an additional Rs 5,000 crore. In addition, an amount of Rs 100 crores has been set aside for the Agri-tech infrastructural funds.To strengthen and modernize the boarder infrastructure, the Budget has earmarked Rs 2250 crore. For scientific warehousing infrastructure, the Budget has allocated Rs 5,000 crore.India is in the verge of changing the know name of developing country to developed country. There is no doubt that the series of measures for infrastructural development, as presented in the Union Budget 2014, will raise adequate resources for the economic development of the country. This will certainly help reviving the ailing economy.Economy of IndiaThe Indian economy is the fourth largest economy of the world on the basis of Purchasing Power Parity (PPP). It is one of the most attractive destinations for business and investment opportunities due to huge manpower base, diversified natural resources and strong macro-economic fundamentals. Also, the process of economic reforms initiated since 1991 has been providing an investor-friendly environment through a liberalized policy framework spanning the whole economy.The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. This page provides - India GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - India GDP - was last refreshed on Friday, November 21, 2014. Below is the chart showing the current GDP updates:

The growth and performance of the Indian economy in the world market is explained in terms of statistical information provided by the various economic parameters. For example, Gross National Product (GNP), Gross Domestic product (GDP), Net National Product (NNP), per capita income, Gross Domestic Capital Formation (GDCF), etc. are the various indicators relating to the national income sector of the economy. They provide a wide view of the economy including its productive power for satisfaction of human wants.

The current scenario of Indian economy has been characterized by optimistic growth and strong macro-economic fundamentals, particularly with tangible progress towards fiscal consolidation and a strong balance of payments position. Gross Domestic Product (GDP), at current market prices, is projected at Rs. 46, 93,602 Crore in 2007-08 by the Central Statistical Organization (CSO) in its advance estimates (AE) of GDP. While, the GDP at factor cost, at constant 1999-2000 prices, is projected to grow at 8.7 per cent in 2007-08. India's telecom sector has been one of the biggest success stories of market oriented reforms. With more than 270 million connections, India's telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia. The total number of telephones has increased from 76.53 million on March 31, 2004 to 272.88 million on December 31, 2007. While 63.8 million telephone connections were added during the 12 months of 2006-07, more than 7 million telephone connections are being added every month during the current year.The infrastructure sector has been expanding on a massive scale. The Index of Six core-infrastructure industries, having a direct bearing on infrastructure, stood at 243.0 (provisional) in December 2007 and registered a growth of 4.0 per cent (provisional) compared to a growth of 9.0 per cent in December 2006. During April-December 2007-08, six core-infrastructure industries registered a growth of 5.7 per cent (provisional) as against 8.9 per cent during the corresponding period of the previous year. Coal production grew by 4.9 per cent (provisional) as compared to an increase of 4.6 per cent during the same period of 2006-07. While, electricity generation grew by 6.6 per cent (provisional) as compared to 7.5 per cent during the same period of 2006-07.In terms of the Wholesale Price Index (WPI), inflation was 3.9 per cent as on January 19, 2008, as compared to 6.3 per cent a year ago. In primary articles, there was a sharp deceleration in inflation to 3.8 per cent as on January 19, 2008, as compared to 10.2 per cent a year ago. They contributed 22 per cent to overall inflation as against 35.4 per cent in the previous year. Similarly, in case of manufactured products, year-on-year inflation as on January 19, 2008, was 3.9 per cent compared to 5.9 per cent in the corresponding period of 2006-07. They contributed 55.2 per cent of the year-on-year inflation. Further, fuel, power, light and lubricants, with a inflation rate of 4.5 per cent, contributed 30.4 per cent, which is more than twice its weight of 14.2 per cent in the index.India's external economic environment continued to be supportive with the invisible account remaining strong and stable capital flows. As a proportion of total capital flows and on a net basis, foreign investment has shown a mixed trend in the current year. In 2006-07, the proportion stood at 33.5 per cent, while it rose to 43.4 per cent in the first half of 2007-08. Foreign direct investment (FDI) grew appreciably on both gross and net basis. On a gross basis, FDI inflow into India was at US$ 11.2 billion in the first six months of 2007-08. FDI inflows were broad-based and spread across a range of economic activities like financial services, manufacturing, banking services, information technology services and construction. While, net portfolio investment inflow was US$ 18.3 billion in April-September 2007, more than double the inflow during 2006-07.India member of World Bank and IMFThe World Bank is a United Nations international financial institution that provides loans to developing countries for capital programs. The World Bank is a component of the World Bank Group, and a member of the United Nations Development Group. The World Bank should not be confused with the United Nations World Bank Group, a member of the United Nations Economic and Social Council, and a family of five international organizations that make leveraged loans to poor countries: International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID)The International Monetary Fund (IMF) is an international organization that was initiated in 1944 at the Bretton Woods Conference and formally created in 1945 by 29 member countries. The International Monetary Fund and the World Bank were both created at an international conference convened in Bretton Woods, New Hampshire, United States in July 1944. The goal of the conference was to establish a framework for economic cooperation and development that would lead to a more stable and prosperous global economy. While this goal remains central to both institutions, their work is constantly evolving in response to new economic developments and challenges.The IMFs mandate. The IMF promotes international monetary cooperation and provides policy advice and technical assistance to help countries build and maintain strong economies. The Fund also makes loans and helps countries design policy programs to solve balance of payments problems when sufficient financing on affordable terms cannot be obtained to meet net international payments. IMF loans are short and medium term and funded mainly by the pool of quota contributions that its members provide. IMF staff are primarily economists with wide experience in macroeconomic and financial policies.The World Banks mandate. The World Bank promotes long-term economic development and poverty reduction by providing technical and financial support to help countries reform particular sectors or implement specific projectssuch as, building schools and health centers, providing water and electricity, fighting disease, and protecting the environment. World Bank assistance is generally long term and is funded both by member country contributions and through bond issuance. World Bank staff are often specialists in particular issues, sectors, or techniques.India is a member of World Bank and IMF both since December 27 1945, as the rules apply that the International Bank for Reconstruction and Development (IBRD) has 188 member countries, while the International Development Association (IDA) has 172 members. Each member state of IBRD should be also a member of the International Monetary Fund (IMF) and only members of IBRD are allowed to join other institutions within the Bank. India in debt to World Bank India's involvement with the World Bank dates back to its earliest days. India was one of the 17 countries which met in Atlantic City, USA in June 1944 to prepare the agenda for the Bretton Woods conference, and one of the 44 countries which signed the final Agreement that established the Bank. In fact, the name "International Bank for Reconstruction and Development" [IBRD] was first suggested by India to the drafting committee. The Indian delegation was led by Sir Jeremy Raisman, Finance Member of the Government of India and included Sir C. D. Deshmukh (Governor of the Reserve Bank of India, later to become India's Finance Minister), Sir Theodore Gregory (the first Economic Advisor to the Government of India), Sir R.K. Shanmukhan Chetty (later independent India's first Finance Minister), Mr. A.D. Shroff (one of the architects of the Bombay Plan) and Mr B.K. Madan (later India's Executive Director in IMF).The Bank lending to India started in 1949, when the first loan of $34 million was approved for the Indian Railways. The first decade of the Bank's lending to India (1949 - 1959) saw just about 20 loans for a total amount of $611 million. During the years 1960-69, overall lending to India from the Bank rose to $1.8 billion, about three times the level in the previous decade. Between 1970-79, there was a large increase in the absolute volume of IDA lending and the IDA share in total Bank assistance reached a high of 80% in this decade. However, in the 1980s, India's share in total IDA lending declined to 25% and was updated by the more expensive WB lending. The volume of the WB lending rose to $14.7 billion during 1980-89, almost 10 times the level of $1.5 billion in the previous decade. The Bank was influential in India's policy making right from the early years of Independence. In 1949, the Bank sent its first Mission to survey the potentialities of Indian economy. Following this, Prime Minister, Jawahar Lal Nehru submitted a special policy statement on foreign capital to Parliament on April 6, 1949. It remains the only document where the role and place of foreign capital in India is stated in explicit terms. It also marked a retreat from the Industrial Policy Statement of 1948. It included the following principles:Existing foreign interests to be given 'national treatment'. New foreign capital would be encouraged. "government would frame policies to enable foreign capital investment on terms and conditions that are mutually advantegeous". Profits and remittances abroad to be allowed. Although majority ownership by Indians was preferred, "Government will not object to foreign capital having control of a concern for a limited period, if it is found to be in the national interest.

The above liberal principles towards foreign capital were fully implemented in the following year's (1949-50) budget. It provided depreciation allowances and income-tax exemption to a wide range of foreign companies. As a follow-up, in 1949-50, the Government fully abolished capital Gains Tax, while the Business Profits Tax, Personal Income-Tax and Super Tax were reduced in 1950-51 budget. All these concessions and commitments to foreign capital were incorporated into the Industrial Development Regulation Act, 1951. Meanwhile, the World Bank began to intervene in Indian economic affairs in a significant manner. A second World Bank mission visited India in mid-50s. On the basis of its instructions to facilitate the close integration of private capital with foreign capital, the Nehru Government established the Industrial Credit and Investment Corporation of India (ICICI) in January 1955. However, the Government announced the Industrial Policy in 1956. This policy was a major departure from the early industrial policy of 1948. While the 1948 statement had given private sector ten years to operate before being nationalized. The 1956 policy marked out the areas in which private sector could expand in an uninhibited manner.Shortly thereafter, the Nehru government earnestly began to flout its own industrial policy. For instance, of the 17 industries listed in Schedule A of the Industrial Policy Resolution, "industries the future development of which will be the exclusive responsibility of the state (and in which) all new units will be set up only by the state", at least seven were opened to MNCs through joint ventures. Schedule B industries which according to 1956 Industrial Policy, were to be progressively state-owned, 12 industries were listed. Out of 12, private sector set up units in 9 industries. Although the private sector also benefited from changes in the official policy the real beneficiaries were foreign companies. Foreign private capital flowed in larger volumes. The form in which the World Bank wanted foreign capital to participate in the Indian economy was made clear when the Government had sought the Bank's assistance for financing the Rourkela Steel Plant in 1956. The Bank insisted that the German collaborators supplying technology should have more leverage than had been offered. The negotiations fell through and evidence suggests that the reason for the Indian government to adopt a strong position at that juncture was due to availability of adequate foreign exchange.Indias short-term debt maturing within a year stood at $172 billion end-March 2013. This means the country will have to pay back $172 billion by March 31, 2014. The corresponding figure in March 2008 before the global financial meltdown that year was just $54.7 billion. India has accumulated a huge short-term debt with residual maturity of one year after 2008. The figure has gone up over three times largely because this period also coincided with the unprecedented widening of the current account deficit from roughly 2.5 percent in 2008-09 to nearly 5 per cent in 2012-13. Much of this expanded CAD has been funded by debt flows. This may turn into a vicious cycle.More pertinently, short-term debt maturing within a year is now nearly 60 per cent of Indias total foreign exchange reserves. In March 2008, it was only 17 per cent of total forex reserves. This shows the actual increase in the countrys repayment vulnerability since 2008. Theoretically, if capital flows were to dry up due to some unforeseen events and NRIs stopped renewing their deposits with India, then 60 per cent of the countrys forex reserves may have to be deployed to pay back foreign borrowings due within a year. A lot of the surge in external debt maturing within the next year is on account of big borrowings by Indian corporates during the boom years after 2004. Corporates became quite heady from their initial growth success and stocked up on huge external debts of 5- to 7-years maturity. The repayment clock is ticking for many of them now. External commercial borrowings are now 31 per cent of the countrys total external debt of $390 billion as of 31 March 2013. Short-term debt with one year maturity is 25 per cent of total external debt. However, total short term debt to be paid back by the end of this fiscal, which includes a lot of corporate borrowings payable by end March 2014, is 44 per cent of the countrys external debt or $172 billion.Corporates have managed to roll over their foreign borrowings over the past year because of the easy liquidity conditions kept by the U.S. Federal Reserve. But if the Feds easy liquidity stance were to reverse, there is no knowing how Indian corporates will pay back their foreign debt at a depreciated exchange rate of the rupee. In any case, besides meeting its debt repayment obligation of $172 billion by 31 March 2014, India needs another $90 billion of net capital flows to meet its current account deficit projected at 4.7 per cent of GDP by the Prime Ministers Economic Advisory Council (PMEAC) for the coming fiscal. Below is 2 datas extracted from World Bank showing Indias debt calculated from a long time to two groups of organization which are part of World Bank which covers about $ 98 Billion

Debt of India (Blns)Original Principal AmountDisbursed AmountDue to IBRD

IBRD Loan$50.64 $32.93 $11.93

IDA Credit $48.15 $37.03 $12.73

Data Source: World Bank Complete Data attached: Appendix I India in debt to International monetary fundIndia took loans from IMF thrice on November, 9, 1981; January 18, 1991, and October 13, 1991, to the tune of $3.9 billion special drawing rights (SDRs), $551.93 million SDRs and $1,656 million SDRs respectively. India's forex reserves had depleted to $1.2 billion in January 1991, and that too dried up by half by June of that year. This forex reserves could finance only three weeks of essential imports. India had to pledge 67 tons of gold reserves to seek the IMF loan.Currently India is in debt to World Bank and the amount is huge and the Indian government believe to come up with the theory of developing their projects as planned and repaying all the debts in time. India has kept his reputation to that level that World Bank observing their few remarkable developments are willing to be on their side still it raises a question how will India pay their debts so soon as few debts are short term.

References:# Population Data: http://data.worldbank.org/country/india# Loan taken from World Bank: https://finances.worldbank.org/Loan-and-Credit-Administration/India-Loans/5hjh-6gwf# Infrastructure of India: http://www.indiainfrastructure.com/research.html# GDP : http://www.worldbank.org/en/publication/global-economic-prospects/data?region=SAS