indian economy vs

8/2/2019 INDIAN Economy Vs

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INDIAN Economy vs US Economy Sumanpreet kaur

Chandigarh Business School,Gharuan Page 1

INDIAN Economy vs. US Economy

The Economy of India is the ninth largest in the world by nominal GDP and

the third largestbypurchasing power parity (PPP). The country is one of

the G-20 major economies and a member ofBRICS. In 2011, the

country's GDP PPP per capita was $3,703 IMF, 127th in the world, thus making

a lower-middle income economy.

After the independence-era Indian economy (before and a little after 1947)

was inspired by theSoviet model of economic development, with a large

public sector, high import duties combined with interventionist policies,

leading to massive inefficiencies and widespread corruption. However, later

on India adopted free market principles and liberalized its economy to

international trade under the guidance ofManmohan Singh, who then was

the Finance Minister of India under the leadership ofP.V.Narasimha Rao the

then Prime Minister. Following these strong economic reforms, the country's

economic growth progressed at a rapid pace with very high rates of growth

and large increases in the incomes of people.

India recorded the highest growth rates in the mid-2000s, and is one of the

fastest-growing economies in the world. The growth was led primarily due to

a huge increase in the size of the middle class consumer, a large labor

force and considerable foreign investments. India is thenineteenth largestexporter and tenth largest importer in the world. Economic growth rates are

projected at around 7% for the 2011-12 fiscal year.

Overview

A combination ofprotectionist, import-substitution, and Fabian socialist-

inspired policies governed India for sometime after India's Independence

from the British. The economy was then characterised by extensive

regulation, protectionism, public ownership, pervasive corruption and slowgrowth.Since 1991, continuing economic liberalisation has moved the

country towards a market-based economy. By 2008, India had established

itself as one of the world's fastest growing economies. Growth significantly

slowed to 6.79% in 200809, but subsequently recovered to 7.4% in 200910,

while the fiscal deficit rose from 5.9% to a high 6.5% during the same period.

Indias current account deficit surged to 4.1% of GDP during Q2 FY11 against

3.2% the previous quarter. The unemployment rate for 2010-11, according to

the state Labour Bureau, was 9.8% nationwide. As of 2011, India's public

debt stood at 62.43% of GDP which is highest among the emergingeconomies.
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India's large service industry accounts for 57.2% of the country's GDP while

the industrial and agricultural sectors contribute 28.6% and 14.6%

respectively. Agriculture is the predominant occupation in Rural India,

accounting for about 52% of employment. The service sector makes up a

further 34%, and industrial sector around 14%.[17]

However, statistics from a200910 government survey, which used a smaller sample size than earlier

surveys, suggested that the share of agriculture in employment had dropped

to 45.5%

Major industries include telecommunications, textiles, chemicals, food

processing, steel, transportation equipment, cement, mining, petroleum,

machinery, software and pharmaceuticals. The labour force totals 500

million workers. Major agricultural products include rice, wheat, oilseed,

cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats,

poultry and fish. In 20092010, India's top five trading partners are UnitedArab Emirates, China, United States, Saudi Arabia and Germany.

Previously a closed economy, India's trade and business sector has grown

fast.[13]India currently accounts for 1.5% of world trade as of 2007 according

to the World Trade Statistics of the WTO in 2006, which valued India's total

merchandise trade (counting exports and imports) at $294 billion and India's

services trade at $143 billion. Thus, India's global economic engagement in

2006 covering both merchandise and services trade was of the order of

$437 billion, up by a record 72% from a level of $253 billion in 2004. India's

total trade in goods and services has reached a share of 43% of GDP in 2005 06, up from 16% in 199091. India's total merchandisee trade (counting

exports and imports) stands at $ 606.7 billion and is currently the 9th

largest in the world.

Sectors

Industry and servicesIndustry accounts for 28% of the GDP and employ 14% of the total

workforce. In absolute terms, India is 12thin the world in terms of nominal

factory output. The Indian industrial sector underwent significant changes

as a result of the economic reforms of 1991, which removed import

restrictions, brought in foreign competition, led to privatisation of certain

public sector industries, liberalised the FDI regime, improved infrastructure

and led to an expansion in the production offast moving consumer goods.

Post-liberalisation, the Indian private sector was faced with increasing

domestic as well as foreign competition, including the threat of cheaper
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Chinese imports. It has since handled the change by squeezing costs,

revamping management, and relying on cheap labour and new technology.

However, this has also reduced employment generation even by smaller

manufacturers who earlier relied on relatively labour-intensive processes.

Textile manufacturing is the second largest source of employment afteragriculture and accounts for 20% of manufacturing output, providing

employment to over 20 million people. As stated in late January, by the then

Minister of Textiles, India, Shri Shankersinh Vaghela, the transformation of

the textile industry from a degrading to rapidly developing industry, has

become the biggest achievement of the central government. After freeing the

industry in 20042005 from a number of limitations, primarily financial, the

government gave the green light to the flow of massive investment both

domestic and foreign. During the period from 2004 to 2008, total investment

amounted to 27 billion dollars. By 2012, still convinced of the government,this figure will reach 38 billion as expected; these investments in 2012 will

create an additional sector of more than 17 million jobs. But demand for

Indian textiles in world markets continues to fall. According to Union

Minister for Commerce and Industries Kamal Nath, only during 20082009

fiscal year (which ends 31 March) textile and clothing industry will be forced

to cut about 800 thousand new jobs nearly half of the rate of two million,

which will have to go all the export-oriented sectors of Indian economy to

soften the impact of the global crisis. Ludhiana produces 90% of woollens in

India and is known as the Manchester of India. Tirupur has gained universalrecognition as the leading source of hosiery, knitted garments, casual wear

and sportswear.

India is 13th in services output. The services sector provides employment to

23% of the work force and is growing quickly, with a growth rate of 7.5% in

19912000, up from 4.5% in 195180. It has the largest share in the GDP,

accounting for 55% in 2007, up from 15% in 1950. Information technology

and business process outsourcing are among the fastest growing sectors,

having a cumulative growth rate of revenue 33.6% between 199798 and

200203 and contributing to 25% of the country's total exports in 200708.The growth in the IT sector is attributed to increased specialisation, and an

availability of a large pool of low cost, highly skilled, educated and fluent

English-speaking workers, on the supply side, matched on the demand side

by increased demand from foreign consumers interested in India's service

exports, or those looking to outsource their operations. The share of

the Indian IT industry in the country's GDP increased from 4.8 % in 200506

to 7% in 2008.[70]In 2009, seven Indian firms were listed among the top 15

technology outsourcing companies in the world.
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Mining forms an important segment of the Indian economy, with the country

producing 79 different minerals (excluding fuel and atomic resources) in

200910, including iron

ore, manganese, mica, bauxite, chromite, limestone, asbestos, fluorite, gypsu

m, ochre, phosphorite and silica sand.[72]

Organised retail supermarketsaccounts for 24% of the market as of 2008.[73]Regulations prevent most

foreign investment in retailing. Moreover, over thirty regulations such as

"signboard licences" and "anti-hoarding measures" may have to be complied

before a store can open doors. There are taxes for moving goods from state

to state, and even within states. Tourism in India is relatively undeveloped,

but growing at double digits. Some hospitals woo medical tourism.

Agriculture

India ranks second worldwide in farm output. Agriculture and allied sectors

like forestry, logging and fishing accounted for 15.7% of the GDP in 200910,

employed 52.1% of the total workforce, and despite a steady decline of its

share in the GDP, is still the largest economic sector and a significant piece

of the overall socio-economic development of India. Yields per unit area of

all crops have grown since 1950, due to the special emphasis placed on

agriculture in the five-year plans and steady improvements in irrigation,

technology, application of modern agricultural practices and provision of

agricultural credit and subsidies since the Green Revolution in India.

However, international comparisons reveal the average yield in India is

generally 30% to 50% of the highest average yield in the world.[76]Indian

states Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Andhra

Pradesh, Bihar, West Bengal and Maharashtra are key agricultural

contributing states of India.

India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a

total annual precipitation of 4000 billion cubic metres, with the total

utilisable water resources, including surface and groundwater, amounting to

1123 billion cubic metres. 546,820 square kilometres (211,130 sq mi) of the

land area, or about 39% of the total cultivated area, is irrigated.

[78]

India'sinland water resources including rivers, canals, ponds and lakes and marine

resources comprising the east and west coasts of the Indian ocean and other

gulfs and bays provide employment to nearly six million people in the

fisheries sector. In 2008, India had the world's third largest fishing industry.

India is the largest producer in the world of milk, jute and pulses, and also

has the world's second largest cattle population with 175 million animals in

2008. It is the second largest producer of rice, wheat, sugarcane, cotton

and groundnuts, as well as the second largest fruit and vegetable producer,

accounting for 10.9% and 8.6% of the world fruit and vegetable production
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respectively. India is also the second largest producer and the largest

consumer of silk in the world, producing 77,000 million tons in 2005.[81]

Banking and finance

The Indian money market is classified into the organised sector, comprisingprivate, public and foreign owned commercial banks and cooperativebanks,

together known as scheduled banks, and the unorganised sector, which

includes individual or family owned indigenous bankers or money

lenders andnon-banking financial companies. The unorganised sector

and microcredit are still preferred over traditional banks in rural and sub-

urban areas, especially for non-productive purposes, like ceremonies and

short duration loans.

Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six

others in 1980, and made it mandatory for banks to provide 40% of their netcredit to priority sectors like agriculture, small-scale industry, retail trade,

small businesses, etc. to ensure that the banks fulfill their social and

developmental goals. Since then, the number of bank branches has increased

from 8,260 in 1969 to 72,170 in 2007 and the population covered by a

branch decreased from 63,800 to 15,000 during the same period. The

total bank deposits increased from 5,910 crore (US$1.18 billion) in 197071

to 3,830,922 crore (US$764.27 billion) in 200809. Despite an increase of

rural branches, from 1,860 or 22% of the total number of branches in 1969

to 30,590 or 42% in 2007, only 32,270 out of 500,000 villages are covered bya scheduled bank.

India's gross domestic saving in 200607 as a percentage of GDP stood at a

high 32.7%.More than half of personal savings are invested in physical assets

such as land, houses, cattle, and gold. 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. Since liberalisation, the government has

approved significant banking reforms. While some of these relate to

nationalised banks, like encouraging mergers, reducing government

interference and increasing profitability and competitiveness, other reformshave opened up the banking and insurance sectors to private and foreign

players.

Energy and power

As of 2009, India is the fourth largest producer of electricity and oil

products and the fourth largest importer of coal and crude-oil in the world.

Coal and oil together account for 66 % of the energy consumption of India.

India's oil reserves meet 25% of the country's domestic oil demand. As of

2009, India's total proven oil reserves stood at 775 million metric tonnes
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while gas reserves stood at 1074 billion cubic metres. Oil and natural gas

fields are located offshore at Mumbai High, Krishna Godavari Basin and

the Cauvery Delta, and onshore mainly in the states ofAssam, Gujarat

and Rajasthan.[94]India is the fourth largest consumer of oil in the world and

imported $82.1 billion worth of oil in the first three quarters of 2010, whichhad an adverse effect on its current account deficit.[90]The petroleum

industry in India mostly consists of public sector companies such as Oil and

Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation

Limited (HPCL) and Indian Oil Corporation Limited (IOCL). There are some

major private Indian companies in the oil sector such as Reliance Industries

Limited (RIL) which operates the world's largest oil refining complex.

As of December 2011, India had an installed power generation capacity of

185.5 Giga Watts(GW), of whichthermal power contributed

65.87%, hydroelectricity 20.75%, other sources ofrenewable energy 10.80%,andnuclear power 2.56%.. India meets most of its domestic energy demand

through its 106 billion tonnes of coal reserves.[97]India is also rich in certain

renewable sources of energy with significant future potential such

as solar, wind and biofuels (jatropha, sugarcane). India's

huge thorium reserves about 25% of world's reserves are expected to fuel

the country's ambitious nuclear energy program in the long-run. India's

dwindling uranium reserves stagnated the growth of nuclear energy in the

country for many years. However, the Indo-US nuclear deal has paved the

way for India to import uranium from other countries.

Infrastructure

India has the world's third largest road network, covering more than

4.3 million kilometers and carrying 60% of freight and 87% of passenger

traffic. Indian Railways is the fourth largest rail network in the world, with a

track length of 114,500 kilometers.India has 13 major ports, handling a

cargo volume of 850 million tonnes in 2010. India has a national teledensity

rate of 74.15% with 926.53 million telephone subscribers, two-thirds of them

in urban areas, but Internet use is rare, with around 13.3 million broadbandlines in India in December 2011. However, this is growing and is expected to

boom following the expansion of3G and wimax services.

Global trade relations

Until the liberalisation of 1991, India was largely and intentionally isolated

from the world markets, to protect its economy and to achieve self-reliance.

Foreign trade was subject to import tariffs, export taxes and quantitative

restrictions, while foreign direct investment (FDI) was restricted by upper-

limit equity participation, restrictions on technology transfer, export

obligations and government approvals; these approvals were needed for
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nearly 60% of new FDI in the industrial sector. The restrictions ensured that

FDI averaged only around $200 million annually between 1985 and 1991; a

large percentage of the capital flows consisted of foreign aid, commercial

borrowing and deposits ofnon-resident Indians. india's exports were

stagnant for the first 15 years after independence, due to general neglect oftrade policy by the government of that period. Imports in the same period,

due to industrialisation being nascent, consisted predominantly of

machinery, raw materials and consumer goods. Since liberalisation, the value

of India's international trade has increased sharply, with the contribution of

total trade in goods and services to the GDP rising from 16% in 199091 to

47% in 200810. India accounts for 1.44% of exports and 2.12% of imports

for merchandise trade and 3.34% of exports and 3.31% of imports for

commercial services trade worldwide. India's major trading partners are

the European Union, China, the United States of America and the UnitedArab Emirates.[110]In 200607, major export commodities included

engineering goods, petroleum products, chemicals and pharmaceuticals,

gems and jewellery, textiles and garments, agricultural products, iron ore

and other minerals. Major import commodities included crude oil and

related products, machinery, electronic goods, gold and silver.[111]In

November 2010, exports increased 22.3% year-on-year to

85,063 crore (US$16.97 billion), while imports were up 7.5% at

125,133 crore (US$24.96 billion). Trade deficit for the same month dropped

from 46,865 crore (US$9.35 billion) in 2009 to 40,070 crore (US$7.99

billion) in 2010.

India is a founding-member ofGeneral Agreement on Tariffs and

Trade (GATT) since 1947 and its successor, the WTO. While participating

actively in its general council meetings, India has been crucial in voicing the

concerns of the developing world. For instance, India has continued its

opposition to the inclusion of such matters as labour and environment

issues and other non-tariff barriers to trade into the WTO policies.

Economy of USThe economy of the United States is the world's largest national economy.

Its nominal GDP was estimated to be over $15 trillion in 2011,[

approximately a quarter ofnominal global GDP. TheEuropean Union has a

larger collective economy, but is not a single nation. Its GDP at purchasing

power parity is the largest in the world, approximately a fifth ofglobal GDP

at purchasing power parity.[2]The U.S. economy also maintains a very high

level ofoutput. In 2011, it was estimated to have a per capita GDP (PPP) of

$48,147, the 7th highest in the world, thus making U.S. one of the world's
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wealthiest nations The U.S. is the largest trading nation in the world. Its

three largest trading partners as of 2010 are Canada, China and Mexico.

The economy of the United States is a mixed economy. and has maintained a

stable overall GDP growth rate, a moderate unemployment rate, and high

levels of research and capital investment. It has been the world's largestnational economy (not including colonial empires) since at least the 1890s.

Most of the economy is classified as services. As of 2012, the country

remains the world's largest manufacturer, representing a fifth of the global

manufacturing output. Of the world's 500 largest companies, 133 are

headquartered in the United States. This is twice the total of any other

country.

About 60% of the global currency reserves have been invested in the United

States dollar, while 24% have been invested in the euro. The country is one of

the world's largest and most influential financial markets. Foreign

investments made in the United States total almost $2.4 trillion, which is

more than twice that of any other country. American investments in foreign

countries total over $3.3 trillion, which is almost twice that of any other

country] Total public and private debt was $50.2 trillion at the end of the

first quarter of 2010, or 3.5 times GDP. The proportion ofpublic debt was

about 0.9 times the GDP. Domestic financial assets totaled $131 trillion and

domestic financial liabilities totaled $106 trillion. As of 2010, the European

Union as a whole was the largest trading partner of the U.S.,

whereas Canada, China, and Mexico were the largest individual tradingnations.

The labor market in the United States has attracted immigrants from all over

the world and its net migration rate is among the highest in the world. The

United States is one of the top-performing economies in studies such as

the Ease of Doing Business Index, the Global Competitiveness Report and

others.

History

The economic history of the United States has its roots in European

settlements in the 16th, 17th, and 18th centuries. The American colonies

went from marginally successful colonial economies to a small, independent

farming economy, which in 1776 became the United States of America. In

180 years the United States grew to a huge, integrated, industrialized

economy that still makes up over a quarter of the world economy.The main

causes were a large unified market, a supportive political-legal system, vast

areas of highly productive farmlands, vast natural resources (especially

timber, coal and oil), a cultural landscape that valued entrepreneurship, a

commitment to investing in material and human capital, and at times a
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willingness to exploit labor. In addition, the U.S. was able to utilize these

resources due to a unique set of institutions designed to encourage

utilization and extraction. As a result, the U.S.'s GDP per capita converged on

and eventually surpassed that of the U.K., as well as other nations that it

previously trailed economically. The economy has maintained high wages,attracting immigrants by the millions from all over the world.

In the 19th century, recessions frequently coincided with financial crises.

The Panic of 1837 was followed by a five-year depression, with the failure of

banks and then-record-high unemployment levels. Because of the great

changes in the economy over the centuries, it is difficult to compare the

severity of modern recessions to early recessions. Recessions after World

War II appear to have been less severe than earlier recessions, but the

reasons for this are unclear. The Depression of 1893 was one of the worst in

American history, with the unemployment rate exceeding 10% for half a

decade.

World's largest economy

The United States has been the world's largest national economy since at

least the 1890s.

For many years following the Great Depression of the 1930s, when danger

ofrecession appeared most serious, the government sought to strengthenthe economy by spending heavily itself or cutting taxes so that consumers

would spend more, and by fostering rapid growth in the money supply,

which also encouraged more spending. Ideas about the best tools for

stabilizing the economy changed substantially between the 1930s and the

1980s. From the New Deal era that began in 1933, to theGreat

Society initiatives of the 1960s, national policy makers relied principally

on fiscal policy to influence the economy. The approach, advanced by British

economist John Maynard Keynes, gave elected officials a leading role in

directing the economy, since spending and taxes are controlled by theU.S.President and the Congress. The "Baby Boom" saw a dramatic increase in

fertility in the period 19421957; it was caused by delayed marriages and

childbearing during depression years, a surge in prosperity, a demand for

suburban single-family homes (as opposed to inner city apartments) and new

optimism about the future. The boom crested about 1957, then slowly

declined. A period of high inflation, interest rates and unemployment after

1973 weakened confidence in fiscal policy as a tool for regulating the overall

pace of economic activity.

The U.S. economy grew by an average of 3.8% from 1946 to 1973, while realmedian household income surged 74% (or 2.1% a year). The economy since
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1973, however, has been characterized by both slower growth (averaging

2.7%), and nearly stagnant living standards, with household incomes

increasing by 10%, or only 0.3% annually.]The worst recession in recent

decades, in terms of lost output, occurred during the 2008 financial crisis,

when GDP fell by 5.0% from the spring of 2008 to the spring of 2009. Othersignificant recessions took place in 195758, when GDP fell 3.7%, following

the 1973 oil crisis, with a 3.1% fall from late 1973 to early 1975, and in the

198182 recession, when GDP dropped by 2.9%.[33][34]Recent, mild recessions

have included the 199091 downturn, when output fell by 1.3%, and the

2001 recession, in which GDP slid by 0.3%; the 2001 downturn lasted just

eight months. The most vigorous, sustained periods of growth, on the other

hand, took place from early 1961 to mid 1969, with an expansion of 53%

(5.1% a year), from mid 1991 to late in 2000, at 43% (3.8% a year), and from

late 1982 to mid 1990, at 37% (4% a year).In the 1970s and 1980s, it was popular in the U.S. to believe that Japan's

economy would outgrow the United States, but the predictions failed.

Emerging countries catch up with the U.S.

Since the 1970s emerging countries have caught up with rich countries.

These countries are learning to produce the same products and services that

previously only the U.S. and a few other countries could produce. Real

income growth in North America, Europe and Japan has been slower than

previously.Since 1976, the US has sustained trade deficits with other nations, and since

1982, current account deficits; the nation's long-standing surplus in its trade

in services was maintained, however, and reached US$140 billion yearly in

2008 and 2009. In recent years, the primary economic concerns have

centered on: high household debt ($11 trillion, including $2.5 trillion

in revolving debt), high net national debt ($9 trillion), high corporate debt

($9 trillion), high mortgage debt (over $15 trillion as of 2005 year-end), high

unfunded Medicare liability ($30 trillion high unfunded Social Security

liability ($12 trillion), high external debt (amount owed to foreign lenders),hightrade deficits, a serious deterioration in the United States net

international investment position (NIIP) (24% of GDP), and high

unemployment. In 2006, the U.S economy had its lowest saving rate since

1933. These issues have raised concerns among economists and national

politicians.
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Comparison of Indian economy with US

economy

India: Comparison Indian of economy vs. US, EuropeanUnion , Canada, Japan and China

India is an emerging economy and comparison of Indian economy with othercountries such as the US, European Union , Canada, Japanand China isneeded to study international economy and business. People want tocompare economies to make strategies. This article will help you understand

better Indian markets, consumers, industries and overall growth picture ofIndia in Comparison with US, EU, Canada, Japan, China and rest of the world.Indiais a large country having population of more than a billion, secondhighest in the world. It is also the largest democracy in the globe. GDP Indiais fourth highest in the world in PPP terms. Here is a comparison of Indianeconomy vs. the US, EU, Canada, Japan, China and rest of the world.Indian GDP ranks to No.12 in nominal term of world GDP afterUS,Japan,UK, Germany,China, France, Italy, Spain, Canada, Brazil and Russia.However, India ($3000B) comes to No.4 after US(America) (($13800B), China ($7000B) andJapan ($4300B) in PPP terms .Indiais a largeeconomy. It has GDP of $1100 B (2007) or RS.55000 B. It isapproximately two percent of the GDP of the world i.e. $55000 B. It does nottell the real story because world GDP is calculated based on US dollars.

However, Indians have to buy, sell and spend in Indian rupee. Price parityparameter shows comparatively better picture. In PPP method,IndianGDP iscalculated to $3000B that is approximately 4.7 percent of world GDP of$64000B in PPP.

Highest growth in stock market

More overIndiais growing at the rate of eight to nine percent per annumwhere as most of the developed countries includingUS, Canada, Japanandcountries of EUand UK are growing at a very slow speed until last year.OnlyChina has shown greater growthrate than India.Picture is little different this year. Most of the developed countries havestarted showing tendency of negative growth. This will surelyaffect India andChina but they can manage their growth in a positive range. It is expectedthat China will manage a growth rate of eight to nine percent where as Indiawill anywhere between seven to eight percent.India has achieved highest growth rate instock marketin the world. If wecompare the stock markets of India and America since 9/11, we findfascinating facts. Dow Jones fell after 9/11 to 8235 on 21st September 2001.The BSE (India) also fell during those days to reach a low of 2595. Particulardata for Shanghai (China) and Hangseng (Hong Kong) are not available to me

(If anyone has the data, please inform me) but those were around 1400 and11000 respectively. Dow Jones is trading at 8787 (While writing this hub Dec.
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09, 2008). If we compare it with the previous Dow Jones data (21 st sept.2001),it has gained mere 550 points over the period of more than seven years.Where as BSE India has traded at (on eighth Dec.2008, 9 th market closed)9162 level. It has jumped from 2595 to 9162, that is a gain of 6567 points orapproximately 250 percent! Hangseng is 14753 and Shanghai is 2037 today.

As I do not have actual data of 21st Sept. of both these indexes it is notjustified to calculate the gain but it is some thing around thirty to fiftypercent.Dow has increased mere six percentin more than seven years and China andHong Kong index has raised by thirty to fifty percent (roughly estimated)

butIndian stock exchange index BSEhas shown an amazing growth of morethan two hundred fifty percent.Fifth highest foreign currency reserve in the world

India has fifth highest foreign currencyreserve in the world.Foreign currency reserves ofChina, Japan, Russia,Taiwan andIndia were $1905, $997B, $485B, $282 B and $247 B respectively in 2007. This showsthat Foreign currency reserve ofIndiawas the fifth highest in the world afterthat ofChina, Japan, Taiwan and Russia. The most interesting fact is thatIndian foreign currency reserve had been increased 64 percent incomparison to 32 percent of Chinaand 57 of Russia, 9 of Japan and below 3percent of Taiwan on year-to-year basis.It is worth mention that so called rich countries likes of the US, Canada,

France and the UK are not in this list.

Composite economic scenario of India:GDP Indiais twelfth largest economy in the world in nominal parameter butthat does not show the real picture.GDP India represents thefourth largest economyin the world in price parityparameter (PPP).India has the second highest growth rate in the world after China.

BSE stock index of India has grown at the fastest pace beating all stock

indexes in the world including America, Canada, China, Japan and of course,all stock markets in European Union. India has no.1 growth rate among stockmarketsin the world.N.B. Global recession also hitIndian economy during the last quarter of 2008.However, It has started regaining its ground. Indiahas successfully controlledits inflation problem. Indian auto sales up by 10 percent during the firstquarter of 2009. It is continuing with its GDP growth.BSE sensex, that has tasted below 8000 during recession has crossed 12000marks on 7th May 2009.The Sensex had crossed 18000 marks at the end of 2009 before com,ingdown to 16K at presen
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India in Green Job sectore

Indiahas announced carbon emissions cut voluntarily atClimate changeconference in Copenhagen. This will be proved a major step towards cleanenergy sector. India is already generating wind power and hydro-electicity.Announcement of carbon emissions cut will push forward India in thesesectors.Some of the major Indian industrialists have started making their industriesgreen. Tata is one of them. This initiative will help growingenvironmentfriendly and energy efficientindustries andbusinesses. India has startedmoving towards renewable sources of energy especially in solar energy andwind energy. Vast desert land in Thar area is ideal place to produce solarenergy. Long coastal area viz a viz to desert are ideal places for producingwind energy.

India is pioneer in recycling industry. Large numbers of Indian people areinvolved in recycling waste materials in unorganized sector. Some organizedsector businesses have recently entered in to this business. Governmentincentives can boost this industry to sky height.

India isgrowing organic foodand other agricultural products in hugequantity. The country is also creating green forests andurban foreststofight global warming and climate change.Several urban cities authorities made water harvesting compulsory for new

buildings. This government initiative is boosting water harvesting projects inurban areas. Government initiatives in rural areas will enhance these

projects many folds.

All these will make India pioneer in green industries. It will create largenumbers ofgreen collar jobsin India.Salary hike in India and other countries

Salary hike in India is the highest in the world. Recent survey reports suggestthat salary hikes in different countries are different. Comparison of salaryhikes in India and other countries in the world are mentioned below.Japan remains the lowest with just half percent hike in salary. it isapproximately one percent in Canada and two percent in NewZealand, Australia. Hong KongandSingapore. The US, of course, haveachieved up to 2.8 percent. Indonesia have achieved a salary hike up to ninepercent and Vietnamis at the level of ten percent growth.However, India beats all countries in the world with eleven percent hike insalary. India is leading even in the recession period.Read more:

Where and in which companies can you get your dream job?Read it before rushing to a white collar jobWhere most of the countries facing bank failures, India has not that much

affected. Though some small banks also failed here no major bank is in
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crisis.Job lossratio in India is also very low in comparison to othercountries. It has growth rate over five percent so far.It is worth mention that India has achieved almost zero percent inflationrate (Year to year basis) where as most of the countries are either facing orin the brink of high inflation.

India will lead internet and telecommunication

India is showing amazing growth in internet connections and mobile phones.India is number two in mobile phone users in the world afterChina. It hassurpassed the US long back. There are more than 650 million mobile users inIndia presently. More over, it is still increasing.India is showing tremendous growthin internet connections. India is addingmore than five million users every month or more than sixty five millioninternet users every year. It is the highest growth rate in the world. It isexpected that India will crossAmerica, the US in number ofinternetconnections by the year 2013. Any of the European Union countries, Japan

and Canada can not stand with India while it comes to numbers.It is well known fact that Indian IT professionals are the back bone of siliconvalley. Number of websites are also increasing in India with the growth ofinternet connections. Indian IT companies are coming forward inwebdesigningand software development.

Economy stats: India vs United States

Indian Economy

stats

AmericanEconomy stats

Business efficiency 59.053 100

Ranked 33rd. Ranked 1st. 69% more than

India

Economic freedom 1.5 3.2

Ranked 123rd. Ranked 7th. 113% more than

India

Economic

importance2.1 197.9

Ranked 25th. Ranked 1st. 93 times

more than India
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GDP $4,164,000,000,000.00 $13,060,000,000,000.00

Ranked 5th in 2006. Ranked 2nd in 2006. 2 times

more than India

GDP growth >

annual %9.23 annual % 3.2 annual %

Ranked 14th in 2005. 188%

more than United States

Ranked 119th in 2005.

GDP (per capita) $3,751.99 per capita $43,680.67 per capita

Ranked 121st in 2006. Ranked 3rd in 2006. 11 times

more than India

GDP per capita in

1820$531.00 $1,287.00

Ranked 24th. Ranked 5th. 142% more than

India

GDP per capita in

1900$625.00 $4,096.00

Ranked 38th. Ranked 3rd. 6 timesmore than India

GDP per capita in

1950$597.00 $9,573.00


more than India

GDP per capita in

1973$853.00 $16,607.00

Ranked 50th. Ranked 2nd. 18 times

more than India

GDP > PPP $3,362,960,000,000.00 $11,628,083,000,000.00

Ranked 4th. Ranked 1st. 2 times more than

India
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Gross National

Income$477,000,000,000.00 $9,780,000,000,000.00


more than India

Gross National

Income (per $ GDP) $14.37 per $100 $83.23 per $100

Ranked 160th. Ranked 20th. 5 times

more than India

Human

Development Index0.602 0.944

Ranked 128th. Ranked 10th. 57% more than

India

Income category Low income High income:OECD

Income distribution

> Poorest 10% 3.5% 1.8%

Ranked 22nd. 94% more than

United States

Ranked 85th.

Income distribution

> Richest 10% 33.5% 30.5%

Ranked 38th. 10% more than

United States

Ranked 54th.

Technological

achievement0.2 0.73

Ranked 59th. Ranked 2nd. 3 times

more than India
http://www.nationmaster.com/graph/eco_gro_nat_inc-economy-gross-national-incomehttp://www.nationmaster.com/graph/eco_gro_nat_inc-economy-gross-national-incomehttp://www.nationmaster.com/graph/eco_gro_nat_inc_pergdp-gross-national-income-per-gdphttp://www.nationmaster.com/graph/eco_gro_nat_inc_pergdp-gross-national-income-per-gdphttp://www.nationmaster.com/graph/eco_gro_nat_inc_pergdp-gross-national-income-per-gdphttp://www.nationmaster.com/graph/eco_hum_dev_ind-economy-human-development-indexhttp://www.nationmaster.com/graph/eco_hum_dev_ind-economy-human-development-indexhttp://www.nationmaster.com/graph/eco_inc_cat-economy-income-categoryhttp://www.nationmaster.com/region/OECDhttp://www.nationmaster.com/region/OECDhttp://www.nationmaster.com/region/OECDhttp://www.nationmaster.com/graph/eco_inc_dis_poo_10-economy-income-distribution-poorest-10http://www.nationmaster.com/graph/eco_inc_dis_poo_10-economy-income-distribution-poorest-10http://www.nationmaster.com/graph/eco_inc_dis_poo_10-economy-income-distribution-poorest-10http://www.nationmaster.com/graph/eco_inc_dis_ric_10-economy-income-distribution-richest-10http://www.nationmaster.com/graph/eco_inc_dis_ric_10-economy-income-distribution-richest-10http://www.nationmaster.com/graph/eco_inc_dis_ric_10-economy-income-distribution-richest-10http://www.nationmaster.com/graph/eco_tec_ach-economy-technological-achievementhttp://www.nationmaster.com/graph/eco_tec_ach-economy-technological-achievementhttp://www.nationmaster.com/graph/eco_tec_ach-economy-technological-achievementhttp://www.nationmaster.com/graph/eco_tec_ach-economy-technological-achievementhttp://www.nationmaster.com/graph/eco_inc_dis_ric_10-economy-income-distribution-richest-10http://www.nationmaster.com/graph/eco_inc_dis_ric_10-economy-income-distribution-richest-10http://www.nationmaster.com/graph/eco_inc_dis_poo_10-economy-income-distribution-poorest-10http://www.nationmaster.com/graph/eco_inc_dis_poo_10-economy-income-distribution-poorest-10http://www.nationmaster.com/region/OECDhttp://www.nationmaster.com/graph/eco_inc_cat-economy-income-categoryhttp://www.nationmaster.com/graph/eco_hum_dev_ind-economy-human-development-indexhttp://www.nationmaster.com/graph/eco_hum_dev_ind-economy-human-development-indexhttp://www.nationmaster.com/graph/eco_gro_nat_inc_pergdp-gross-national-income-per-gdphttp://www.nationmaster.com/graph/eco_gro_nat_inc_pergdp-gross-national-income-per-gdphttp://www.nationmaster.com/graph/eco_gro_nat_inc-economy-gross-national-incomehttp://www.nationmaster.com/graph/eco_gro_nat_inc-economy-gross-national-income


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Education stats: India vs United States

Indian

Education stats

American

Education stats

Adjusted savings: education

expenditure > % of GNI 3.99 % of GNI 4.79 % of GNI

Ranked 88th in 2005. Ranked 59th in

2005. 20% more than

India

Average years of schooling of

adults5.1 12

Ranked 65th. Ranked 1st. 135%

more than India

Duration of compulsory

education8 years 12 years

Ranked 116th. Ranked 12th. 50%more than India

Duration of education >

Primary level 6 6

Ranked 96th. Ranked 83rd.

Duration of education >

Secondary level 5 6

Ranked 164th. Ranked 109th. 20%

more than India

Education enrolment by level

> Tertiary level 11,295,041 16,611,711

Ranked 3rd in 2002. Ranked 1st in

2002. 47% more than

India
http://www.nationmaster.com/country/in-india/edu-educationhttp://www.nationmaster.com/country/in-india/edu-educationhttp://www.nationmaster.com/country/in-india/edu-educationhttp://www.nationmaster.com/country/us-united-states/edu-educationhttp://www.nationmaster.com/country/us-united-states/edu-educationhttp://www.nationmaster.com/country/us-united-states/edu-educationhttp://www.nationmaster.com/graph/edu_adj_sav_edu_exp_of_gni-education-adjusted-savings-expenditure-gnihttp://www.nationmaster.com/graph/edu_adj_sav_edu_exp_of_gni-education-adjusted-savings-expenditure-gnihttp://www.nationmaster.com/graph/edu_adj_sav_edu_exp_of_gni-education-adjusted-savings-expenditure-gnihttp://www.nationmaster.com/graph/edu_ave_yea_of_sch_of_adu-education-average-years-schooling-adultshttp://www.nationmaster.com/graph/edu_ave_yea_of_sch_of_adu-education-average-years-schooling-adultshttp://www.nationmaster.com/graph/edu_ave_yea_of_sch_of_adu-education-average-years-schooling-adultshttp://www.nationmaster.com/graph/edu_dur_of_com_edu-education-duration-of-compulsoryhttp://www.nationmaster.com/graph/edu_dur_of_com_edu-education-duration-of-compulsoryhttp://www.nationmaster.com/graph/edu_dur_of_com_edu-education-duration-of-compulsoryhttp://www.nationmaster.com/graph/edu_dur_of_edu_pri_lev-education-duration-of-primary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_pri_lev-education-duration-of-primary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_pri_lev-education-duration-of-primary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_sec_lev-education-duration-of-secondary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_sec_lev-education-duration-of-secondary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_sec_lev-education-duration-of-secondary-levelhttp://www.nationmaster.com/graph/edu_edu_enr_by_lev_ter_lev-education-enrolment-by-level-tertiaryhttp://www.nationmaster.com/graph/edu_edu_enr_by_lev_ter_lev-education-enrolment-by-level-tertiaryhttp://www.nationmaster.com/graph/edu_edu_enr_by_lev_ter_lev-education-enrolment-by-level-tertiaryhttp://www.nationmaster.com/graph/edu_edu_enr_by_lev_ter_lev-education-enrolment-by-level-tertiaryhttp://www.nationmaster.com/graph/edu_edu_enr_by_lev_ter_lev-education-enrolment-by-level-tertiaryhttp://www.nationmaster.com/graph/edu_dur_of_edu_sec_lev-education-duration-of-secondary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_sec_lev-education-duration-of-secondary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_pri_lev-education-duration-of-primary-levelhttp://www.nationmaster.com/graph/edu_dur_of_edu_pri_lev-education-duration-of-primary-levelhttp://www.nationmaster.com/graph/edu_dur_of_com_edu-education-duration-of-compulsoryhttp://www.nationmaster.com/graph/edu_dur_of_com_edu-education-duration-of-compulsoryhttp://www.nationmaster.com/graph/edu_ave_yea_of_sch_of_adu-education-average-years-schooling-adultshttp://www.nationmaster.com/graph/edu_ave_yea_of_sch_of_adu-education-average-years-schooling-adultshttp://www.nationmaster.com/graph/edu_adj_sav_edu_exp_of_gni-education-adjusted-savings-expenditure-gnihttp://www.nationmaster.com/graph/edu_adj_sav_edu_exp_of_gni-education-adjusted-savings-expenditure-gnihttp://www.nationmaster.com/country/us-united-states/edu-educationhttp://www.nationmaster.com/country/us-united-states/edu-educationhttp://www.nationmaster.com/country/in-india/edu-educationhttp://www.nationmaster.com/country/in-india/edu-education


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Education spending (% of

GDP)4.1% 5.7%

Ranked 82nd. Ranked 39th. 39%

more than India

Education spending (% of total

government expenditure) 12.7% 17.1%

Ranked 68th. Ranked 38th. 35%

more than India

Female enrolment share >

Primary level 43.6% 48.7%

Ranked 161st. Ranked 50th. 12%

more than India

Female enrolment share >

Secondary level 39.6% 49%

Ranked 152nd. Ranked 92nd. 24%

more than India

Geographical aptitude results 77.883 70.069

Ranked 17th. 11%

more than United States

Ranked 96th.

Primary school girls out of

school39% 0%

Ranked 31st. Ranked 96th.

Public spending on education,

total > % of government

expenditure

10.74 % 15.25 %

Ranked 57th in 2003. Ranked 32nd in

2003. 42% more than

India
http://www.nationmaster.com/graph/edu_edu_spe-education-spending-of-gdphttp://www.nationmaster.com/graph/edu_edu_spe-education-spending-of-gdphttp://www.nationmaster.com/graph/edu_edu_spe_as_per_of_tot_gov_exp-education-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_edu_spe_as_per_of_tot_gov_exp-education-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_edu_spe_as_per_of_tot_gov_exp-education-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_fem_enr_sha_pri_lev-female-enrolment-share-primary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_pri_lev-female-enrolment-share-primary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_pri_lev-female-enrolment-share-primary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_sec_lev-female-enrolment-share-secondary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_sec_lev-female-enrolment-share-secondary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_sec_lev-female-enrolment-share-secondary-levelhttp://www.nationmaster.com/graph/edu_geo_apt_res-education-geographical-aptitude-resultshttp://www.nationmaster.com/graph/edu_geo_apt_res-education-geographical-aptitude-resultshttp://www.nationmaster.com/graph/edu_pri_sch_gir_out_of_sch-education-primary-school-girls-outhttp://www.nationmaster.com/graph/edu_pri_sch_gir_out_of_sch-education-primary-school-girls-outhttp://www.nationmaster.com/graph/edu_pri_sch_gir_out_of_sch-education-primary-school-girls-outhttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pub_spe_on_edu_tot_of_gov_exp-public-spending-total-government-expenditurehttp://www.nationmaster.com/graph/edu_pri_sch_gir_out_of_sch-education-primary-school-girls-outhttp://www.nationmaster.com/graph/edu_pri_sch_gir_out_of_sch-education-primary-school-girls-outhttp://www.nationmaster.com/graph/edu_geo_apt_res-education-geographical-aptitude-resultshttp://www.nationmaster.com/graph/edu_fem_enr_sha_sec_lev-female-enrolment-share-secondary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_sec_lev-female-enrolment-share-secondary-levelhttp://www.nationmaster.com/graph/edu_fem_enr_sha_pri_lev-female-enrolment-share-primary-levelhttp:/

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