| Economy - overview: | 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, accounting for half of India's output with less than one quarter of its labor force. About two-thirds of the workforce is in agriculture, leading the UPA government to articulate an economic reform program that includes 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% on non-agricultural items in 2004) and limits on foreign direct investment are still in place. The government in 2005 liberalized investment in the civil aviation, telecom, and construction sectors. Privatization of government-owned industries essentially came to a halt in 2005, 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 more than 6.8% in the decade since 1994, reducing poverty by about 10 percentage points. India probably achieved greater than 7 percent GDP growth in 2005, significantly expanding manufacturing. 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. |
| GDP - per capita | $3,400 (2005 est.) |
| GDP - real growth rate (%) | 7.1% (2005 est.) |
| Agriculture - products | rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish |
| GDP - composition by sector (%) | agriculture: 20.6%, industry: 28.1%, services: 51.4% (2005 est.) |
| Industries | textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software |
| Economic aid - recipient | $2.9 billion (FY98/99) |
| Debt - external | $119.7 billion (2005 est.) |
| Population below poverty line (%) | 25% (2002 est.) |
| Labor force - by occupation (%) | agriculture 60%, industry 17%, services 23% (1999) |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
