Today, we delve into the intricacies of the Indian economy, exploring its dynamic facets and the factors shaping its growth trajectory. From diverse sectors to policy interventions, we unravel the multifaceted tapestry that defines India's economic landscape.
Sectors of Indian economy
The Indian economy is categorized into three sectors: the primary economy, the secondary economy, and the tertiary economy. Operationally, it is further classified into organized and unorganized sectors, while ownership-wise, it is segmented into the public sector and the private sector.
Economy of India: world ranking in 2023
The nominal GDP witnessed a surge, reaching $3.732 trillion in 2023, securing the 5th position globally. In terms of purchasing power parity (PPP), the estimated increase was substantial, reaching $13.119 trillion, positioning India at the 3rd rank in 2023. As for GDP per capita, the nominal figure rose to $2,612, placing India at the 140th rank globally in 2023. In PPP-adjusted terms, the GDP per capita increased to $9,183, positioning India at the 125th rank in 2023.
Indian economy in 2022
In 2022, the GDP exhibited growth, increasing to $11,900.7 billion in terms of PPP and $3,389.7 billion in nominal terms. The GDP per capita also showed an upswing, reaching $8,397.5 in PPP and $2,391.9 in nominal terms. The real GDP growth rate stood at 7.2%, accompanied by an inflation rate of 6.7%. The unemployment rate experienced a decrease, reaching 7.3%, while government debt as a percentage of GDP demonstrated a positive decrease, settling at 81.0%.
Indian economy: today
India's economic expansion is forecasted by the UN to reach 6.2% in 2024, propelled by robust demand and the flourishing sectors of manufacturing and services. Although challenges such as unpredictable rainfall may impact agriculture, the overall resilience of India's economy is evident through its steadfast and consistent growth.
Growth of Indian economy
The GDP growth for FY2022-23 stood at an impressive 7.2%, marking a period of robust economic expansion during that fiscal year. Looking ahead, there is a projection of a slightly reduced but still substantial increase of 6.2% in GDP for FY2023-24. Additionally, in Q2 of the fiscal year 2023-24, there is an anticipation of a robust growth rate of 7.6%.
When will India become 3rd largest economy?
According to S&P Global's Global Credit Outlook 2024 report, titled 'New Risks, New Playbook,' India is poised to secure the position of the third-largest economy by 2030. S&P Global anticipates India to be the fastest-growing major economy in the coming three years. Previous forecasts from S&P Global Market Intelligence also suggest that India's nominal GDP, measured in USD terms, is expected to soar to $7.3 trillion by 2030. This accelerated economic growth is likely to surpass Japan's GDP, positioning India as the second-largest economy in the Asia-Pacific region by 2030.
Role of agriculture in Indian economy
In the past, India heavily depended on agriculture, with over 50% of its population relying on this sector as the primary income source. Recognized as the backbone of the Indian economy, agriculture made a substantial contribution to the national income, accounting for 48% to 60% of the total national output in the initial two decades. However, by 2001-2002, this contribution had dwindled to around 26%. The combined share of Agriculture and Allied Sectors, which included agribusiness, livestock, forestry, and fisheries, constituted 13.9% of GDP in 2013-14 at 2004-05 prices. Agricultural exports played a significant role, making up one-fifth of the country's total exports.
Is India ready for cashless economy?
The government's efforts have played a crucial role in enabling people to embrace various fintech solutions over the years. While India has made significant strides in transitioning to a fully digital landscape, there is still a considerable journey ahead. In addition to literacy centers and initiatives promoting digital banking awareness, the government should embark on continuous and widespread digital education campaigns. These endeavors will enhance the dissemination of information about electronic transactions and virtual currencies.
The simplification of digital banking processes and the control of transaction fees are essential steps to ensure that people feel comfortable transitioning to digital transactions in their daily lives.
While the transition to a cashless economy poses certain challenges and concerns, the positive aspects outweigh these issues. With effective strategies and implementation, India can successfully accelerate its journey towards becoming an efficient cashless economy.
The simplification of digital banking processes and the control of transaction fees are essential steps to ensure that people feel comfortable transitioning to digital transactions in their daily lives.
While the transition to a cashless economy poses certain challenges and concerns, the positive aspects outweigh these issues. With effective strategies and implementation, India can successfully accelerate its journey towards becoming an efficient cashless economy.
Digital economy in India
Kaku Nakhate, President & India Country Head of Bank of America, expresses confidence in the digital economy serving as a pivotal growth driver for India. She anticipates that by 2030, the digital economy will contribute nearly 20% to the GDP, a substantial increase from the current approximately 8%. Nakhate envisions a remarkable decade for India, emphasizing that the digital economy's significant contribution signifies a fundamental shift in the country's economic structure.
How does the Indian economy compare to the Chinese economy?
The Indian and Chinese economies differ significantly in various aspects. China has maintained a consistent lead over India in terms of overall economic size, GDP growth rates, and industrialization. China's economy is larger, more export-oriented, and has experienced rapid industrialization over the past few decades, positioning it as the world's second-largest economy. In contrast, India, while being one of the fastest-growing major economies, faces challenges related to infrastructure, bureaucratic hurdles, and a large informal sector. The Indian economy is characterized by a diverse economic base, with a significant portion relying on agriculture. Both nations have unique strengths and face distinct challenges, contributing to their distinct economic landscapes on the global stage.
Pakistan vs India economy
In India, the currency is the Indian rupee (1 INR = 100 Paise), while in Pakistan, it is the Pakistani rupee (1 PKR = 100 Paisa). The unemployment rate is 7.3% in India and 6.4% in Pakistan, with inflation rates standing at 6.70% and 19.87%, respectively. The cost of living, measured against the USA (100%), is 26.92% in India and 23.12% in Pakistan. Commercial taxes and contributions account for 49.70% in India and 33.90% in Pakistan. The average income is 2,390 US dollars in India and 1,560 US dollars in Pakistan. The central government debt as a percentage of GDP is 55.45% in India and 75.75% in Pakistan. In terms of the corruption index, India is rated 60 (considered bad), while Pakistan is rated 73 (considered very bad).
