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India

General Information & Brief Economic Summary

Foreign Trade

US Embassy

Government of India Directory

Trade Event Schedule

General Information & Brief Economic Summary

India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, though two-thirds of the workforce is in agriculture. The UPA government has committed to furthering economic reforms and developing basic infrastructure to improve the lives of the rural poor and boost economic performance. Government controls on foreign trade and investment have been reduced in some areas, but high tariffs (averaging 20% in 2004) and limits on foreign direct investment are still in place. The government has indicated it will do more to liberalize investment in civil aviation, telecom, and insurance sectors in the near term. Privatization of government-owned industries has proceeded slowly, and continues to generate political debate; continued social, political, and economic rigidities hold back needed initiatives. The economy has posted an excellent average growth rate of 6.8% since 1994, reducing poverty by about 10 percentage points. India is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers. Despite strong growth, the World Bank and others worry about the combined state and federal budget deficit, running at approximately 9% of GDP. The huge and growing population is the fundamental social, economic, and environmental problem. In late December 2004, a major tsunami took at least 60,000 lives in India, caused massive destruction of property, and severely affected the fishing fleet.

Major cities/towns
The 1991 census showed 25.7% of India's population (217.6 million) as urban, occupying 3,768 identified urban areas. This figure is now estimated to have increased to 32%. The traditional 4 metros are Delhi (population 8.4 million in 1991, now estimated at around 13 million) Bombay, now Mumbai (9.9 million in 1991), Calcutta (Now Kolkata) (11 million in 1991), and Madras, now Chennai (5.4 million in 1991). Other cities like Pune, Hyderabad, Bangalore, Lucknow, Ahmedabad, Ernakulam (Cochin) etc are rapidly developing into major centres of commerce and industry.

Population
846.3 million (1991 census); end-1999 estimate 980 million; current growth rate 1.63% per annum; Life span (1996-97) 63 years; death rate 9 per 1000; birth rate 27 per 1000.

Languages
Hindi is the official language, and English is widely used as a link language. In addition, there are 13 major languages recognised by the Constitution of India and about 844 dialects.

Adult Literacy
52.21% (1991 census); end-1999 estimate 54%

Religions
India is a secular country and has no state religion. Major religions represented in India include Hinduism (82%), Islam (12%), Christianity (2.3%), Sikhism (1.9%), Buddhism (0.8%) and Jainism (0.4%)

Currency
Rupee (One Rupee=100 paise) Rate of exchange - USD 1 = approx. Rs. 45.00

Fiscal Year
1st April to 31st March.

Mineral resources
Coal, crude oil, natural gas, iron ore, bauxite, limestone, manganese ore, magnesite, chromite, copper ore, zinc, lead, gold, mica, gypsum, tungsten, barytes, graphite, dolomite, kaolin, phosphates and many more, with considerable reserves yet to be exploited in most cases

Agriculture
Rice, wheat, coarse cereals, cotton, jute, sugarcane, oilseeds, pulses, a variety of fruits and vegetables, plantation crops (tea, coffee, various spices etc.), herbal and medicinal crops; animal husbandry and food processing are also well-developed sectors.

Industry
Textiles and yarns (cotton, silk, jute, synthetics etc.), cement, rubber goods, engineering goods, electronics and heavy electrical products, automobiles, food processing, steel, fertilisers, mining, chemicals, paper and newsprint, drugs and pharmaceuticals, a variety of consumer goods industries and small and cottage industries, information technology.

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Foreign Trade ( in US$ billions)

TRADE ACTIVITY 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02
Imports 36.7 38.5 41.5 41.9 49.7 49.6 51.4
Exports 31.8 33.1 35.0 33.7 36.8 44.3 43.8
Total 68.5 71.6 76.5 75.6 86.5 93.9 95.2
Balance -4.9 -5.4 -6.5 -8.2 -12.9 -5.3 -7.6

Major Trading Partners

  Share of India's Total Trade
OECD 54% ( Japan accounted for 3% and Australia for 2%
EU 26% (especially UK, Germany, France, Belgium and Netherlands)
OPEC 16% (especially Saudi Arabia, Kuwait and Iran)
NAFTA 16% (with USA accounting fro 10.7%)
ASEAN35 7.6%
SAARC 3%
CIS 2% (of which 1% is with Russia)
LAIA 2%

Major Exports
Major Export items are Cereals (Rice), Nuts & Seeds (Cashew incl.CNSL), Processed Foods, Marine Products, Iron Ore, Footwear, Leather & Mfrs, Gems & Jewellery, Chemical Products like Basic Chemls.Pharma & Cosmetics, Plastics & Linoleum, Rubber, glass & Other Products, Machinery & Instruments, Primary & Semi-fnshd iron & Steel, Manufactures of Metals, Electronics, Textile materials like Readymade Garments, Cotton, Yarn, fabrics, made-ups,etc, and Man-made textiles made-ups etc., Carpets and Petroleum Products.

Major Imports
Major Imports are Fertilizers, Edible Oil, Paper Board & Mfrs, Non-ferrous Metals, Metalliferrous Ores & metal scrap, Iron & Steel, Petroleum Crude Products, Pearls, Precious & Semi-precious Stones, Machinery other than electrical, Electrical Machinery and Transport Equipment, Coal, coke & briquettes, Organic & Inorganic Chemicals, Artf. resins,etc, Electronic goods, Wood and Wood Products and Gold & Silver.

Foreign Investment
In the period 1991-99, USD 59.70 billion worth of FDI was approved, with gross FDI inflow amounting to about USD 19.20 billion, around 33.35% of total FDI approved. Inflows received during 1999 account for 24% of the total inflow received since January 1991. Sectors attracting the major share of FDI include telecommunications, fuel (power and oil refinery), transportation industry, metallurgical industry, chemical industry, electrical equipment and the service sector.

Main Investors
About 22.2% of approved FDI in 1991-99 was from the United States. Other major investors include Mauritius (10.58%), UK (7.62%), South Korea (4.62%), Japan (4.62%) and Germany (3.77%). Since 1991, Mauritius has accounted for maximum inflows (17.82%) followed by USA (11.94%), Japan (4.24%), Germany (3.36%) and UK (3.19%).

Tourism
In 1998-99, about 2 million tourists visited India and tourism revenues amounted to USD 3 billion.
GDP
USD 383 billion (1998-99)
GDP
Growth Rate 6% (1998-99)
GNP
USD 421 billion (1988-99)
Per capita GNP
USD 430 (1996-97)
Per capita PPP
USD 1,700 (1998-99)
Per capita
GNP USD 430 (1996-97)
Per capita
PPP USD 1,700 (1998-99)
GDP Distribution in 1998-99

- Agriculture 25%,
- Industry 30% (of which Manufacturing 19%)
- Services 45%

Gross Domestic Savings
23% of GDP in 1998-99
Gross Domestic Investment
5.9% average annual growth in 1990-98

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US Embassy

Shantipath, Chanakyapuri
New Delhi - 110021
India
Tel: +91-11-2419-8000
Fax: +91-11-2419-0017
http://newdelhi.usembassy.gov/

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Government of India Directory
http://goidirectory.nic.in/

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*This guide is not a complete list of trade associations or publications. We welcome any additions to this document. The Material Handling Industry does not assume a legal liability or responsibility for the accuracy, completeness or usefulness of the information contained herein. The listing of information here does not reflect an endorsement of any of the particular information by the Material Handling Industry.

 
Trade Event Schedule

CeMAT India
10 - 13 December 2008
Bangalore International Exhibition Centre (BIEC)
www.cemat-india.com

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