Following are present and future realities regarding the Indian economy:
- With a population over 1 billion and an estimated annual GDP growth of around 7%, India is the 11th largest economy by GDP and 4th largest by purchasing power parity.
- With 467 million workers, India has the world’s 2nd largest labor force. The service sector makes up 54 percent of the GDP.
- In 2009, India was world’s 15th largest importer and 18th largest exporter. Major imports include machinery, crude oil, fertilizer, and chemicals.
- By 2030, India’s middle class population will exceed 580 million, thus increasing their purchasing and investment power (note: during this same period most of the advanced economies of the world will see very little movement and growth in its middle class population).
- Although recent studies show that India ranks 51st in global competitiveness, it ranks 30th in innovation, 16th in financial market sophistication, 24th in banking sector, and 27th in business sophistication, ahead of several advanced economies.
- India’s consumer market, currently the 13th largest is expected to become the 5th largest by 2030.
- It’s GDP at purchasing power parity is expected to overtake that of Japan during 2011 and that of the United States by 2045. In addition, during the next 4 decades, India’s economy is expected to grow at an average of 8%.
- The government of India has liberalized their trade policy to attract foreign capital and investment as well as made it easier for Indian owned companies to invest abroad.
- For the last two years, Indian companies and investors have been making investment and acquisitions abroad in a staggering pace, and are expected to rise.