By Somali K Chakrabarti
The year 2014, has been an unprecedented year for India in terms of election results. In the last quarter of the year, here are some key facts about India’s economy.
1. India ranks 10th in terms of nominal GDP
India’s nominal GDP has been stuck in the USD 1.8 – 1.9 trillion range for the last three years, and is expected to cross the USD 2-trillion mark this fiscal, according to a Nomura report. Nomura expects nominal GDP to reach nearly USD 3 trillion by FY17.
2. In terms of Purchasing Power Parity (PPP), India is the 3rd largest economy in the world
According to a World Bank Report, published on 29th April, 2014, India overtook Japan as the world’s third largest economy in terms of purchasing power parity (PPP). Overall, India went from 10th place in 2005 to 3rd place in 2014. The The United States remains the world’s largest economy, with China closing in, when measured using PPPs.
3. India’s per capita GDP is only 3% of per capita GDP of USA
Russia is the richest BRIC Nation, with a per capita GDP at 1/3rd of USA , whereas India’s per capita GDP is only 3% of USA’s.
According to World Bank’s International Comparison Program (ICP) figures, despite their large economies both China and India rank low in terms of per capita GDP . As per the ICP report, China ranked 99, while India stood at 127 in per capita economic output.
4. Loans-to-GDP ratios: India one of the least leveraged countries in Asia.
With 7% rise in Loan to GDP ratio since 2007, India is one of the least leveraged countries in Asia.
5. Global Competitiveness Index
As per the Global Competitiveness Report 2014-2015, released by the World Economic Forum (WEF), Switzerland is the most competitive economy, followed by Singapore. India slipped from its 60th position in 2013-2014, to 71st position – the lowest among BRICS countries. India’s Competitivenesss ranking has fallen steadily since 2009 -2010, when India was at the 49th spot. In 2014, China, on the 28th spot, leads the BRICS grouping.
6. India ranks 7th on the FDI Confidence Index
India slipped to the 7th position in 2014 from 5th position in 2013, in the foreign direct investment (FDI) confidence index, shows a study by AT Kearney. US takes the top spot in the FDI confidence index.
7. How India fares w.r.t. peers in terms of components that contribute to the ease of doing business
8. India’s has the lowest workforce participation rate of women among the BRICS
Among the BRICS (Brazil, Russia, India, China and South Africa) which are comparable emerging economies, India has the lowest female participation rate, with only 29% of women over the age of 15 working.
9. 33% of the world’s poor live in India
According to 2010 data from the United Nations Development Programme, an estimated 29.8% of Indians live below the country’s national poverty line. India is home to the largest number of poor with one-third of the world’s extreme poor living here. It also had the highest number of under-five deaths in the world in 2012, with 1.4 million children dying before reaching their fifth birthday, according to the UN Millennium Development Goals report 2014.
10. 89% of population in India don’t have access to internet
India now has over 240 million Internet users
India, with 240 million Internet users is shortly behind the United States that has nearly 280 million internet users, whereas China leads with more than 640 million internet users. The number of Internet users in India is expected to surpass the number in the U.S. by the end of 2014.
However only around 19% population has access to internet, (as per the latest internet live stats). Since roughly 45 percent of the population lives without electricity, Internet penetration is quite low in India.
Most of the data in this post has been compiled from the Twitter timeline of Uday Tharar (@udaytharar)
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5 thoughts on “10 Key Facts about India’s Economy in 2014”
India’s level of poorness is mean, the division between the poor and rich is ineludible, it is an extremely poor and not developed country that needs support and a more realistic government. A country with such a high number of people living in extreme poverty cannot become one of the richest too, it’s mean, unfair and a big F U to big and good strong economies
Thanks for your comment. You are right that there is a wide division between the poor and rich in India. However India is a fast emerging economy, with well developed institutions and a huge young working population that can contribute to the growth and development of the country. India has made some remarkable progress in science and technology, as is apparent from the success of its Mars mission, wherein India succeeded in sending its spaceship to Mars using home grown technology and in the most cost effective manner. The present govt is serious about steering the country to a growth path, and have set ambitious targets. World Bank has forecast a growth rate of 5.6% for India for the next fiscal year. We are hopeful that things will improve for the better and India will join the league of developed nations.
I do not doubt of the capacity the people has, but I do not agree with the way the goverment is working, supporting the economy growth and development despite the extreme level of poverty they have in the country.
I just think that if India is going to be a worldwide potence, those levels of poverty cannot exist in the country, and something should be done to at least erradicate the extreme type of poverty, before thinking about becoming any richer.
It has been 6 months that the new govt has taken over. They have plans in place for overall development of the country. Inclusive growth is very much on the agenda. Hopefully this govt will be successful with implementing the plans.
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I hope so too! It’s really sad when you see so many people suffering and starving across the street from where some fancy brand is succesfully selling its products. And it’s even worse knowing that as an outsider you cannot help, I hope the new plans they have are intended to erradicate the extreme poverty in India 😉
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