20 Important facts about Indian Economy-2020

Mauritius has the highest FDI inflow (31% of the total Indian FDI) in India From April 2000 To December 2019. The Indian economy is composed of the three major sectors like i.e., Services sector, Industry sector, and Agriculture sector. The contribution of the Services sector in the Indian economy is around 54.30%. The Value of India's Export stood at US$ 356.96 billion in between April-November 2019.

India's economy has become the 5th largest economy (in terms of nominal GDP) in the world. We have compiled some important data of the Indian economy for the different competitive exams.

The size of major economies of the world is as follows; (in terms of Nominal GDP-IMF Estimates 2019)

1. U.S.A         - $21.43 trillion.

2. China        - $14.14 trillion.

3. Japan        - $5.15 trillion.

4. Germany - $3.86 trillion.

5.India -           $ 2.93 trillion

6. U.K.        -   $2.74 trillion.

7.  France    - $2.70 trillion.

 Demographic profile of India;

Total Population: 1.35 billion

Population Growth Rate: 1.08% (2019)

Literacy: 74.04% (2011 census)

Male: 82.14%

Female: 65.46%

Life Expectancy: 67.4 years (men), 70.2 years (women) (2012-16, National Health Profile-2019)

Languages: Hindi, English and at least 16 other official languages

Religions:

a. Hinduism    (79.8%))

b. Islam          (1 4.2%)

c. Christianity (2.3%),

d. Sikhism       (1.7%)

e. Buddhism     (0.7%)

f. Jainism         (0.4%)

Area:

Total Area: 3,287,263 sq km. (3,214 km from North to South and 2,933 km from East to West)

Land: 2,973,190 sq km

Water: 314,070 sq km

 Natural Resources found: Coal (fourth-largest reserves in the world), petroleum, natural gas, bauxite, iron ore, mica, manganese, diamonds, gold and limestone.

Gross Value Added (GVA) Composition by Sector (2017-18 2nd Advance Estimate)

a. Services Sector: 54.53%

b. Industry Sector: 29.6%

c. Agriculture Sector: 16.14%

5. Fiscal Year: April 01 – March 31

6. Foreign Exchange Reserves: US$ 481.922 billion (March. 2020)

7. Value of India's Exports: US$ 356.96 billion in April-November 2019.

8. Crucial export partners of India: USA,  UAE, China, Hongkong, Singapore UK, Bangladesh 

9. Share of Top Investing Countries FDI Equity Inflows:  April 2000 – June 2019)

a. Mauritius (32%) 

b. Singapore (20%)

c. UK (6%)

d. Japan (7%)

e. Netherlands (7%)

f. USA (6%)

g. Germany (3%)

Major Sectors Attracting Highest FDI Equity Inflows: (April 2000 – June 2019)

a. Services Sector (18%) 

b. Telecommunications (8%) 

c. Computer Software and Hardware (9.5%) 

d. Construction Development (6%) 

e. Automobile (5.8%)

f. Trading (6%) 

g. Drugs and Pharmaceuticals (4%) 

h. Chemicals (4%) 

i. Power (3%)

j. Construction Activities (4%)

FDI Inflow in India:- (2014 to 2018)

Airports: Managed by the Airports Authority of India

Total Airports in India: 137

International Airports: 23

Civil enclaves: 20

15. Railways:

Railways Network: 108,706 km

Passenger Trains: 13452

Freight Trains: 9141

Total Railways Stations: 7,172

Daily Travellers: 23 million

16. Roadways:

Total Road Network: 4.87 million km (second largest in the world)

Indian roads carry about 65% of freight and 85% of passenger traffic.

17. Current Account Deficit (CAD): US$1.4 billion in the third quarter of 2019/20

18. Waterways: 14,500 km

19. Major Ports of Entry:

Mumbai, Chennai, Kolkata, Haldia, Kandla, Ennore, Paradip, Tuticorin and Vishakhapatnam, Jawaharlal Nehru Port Trust, Kochi, Mormugao and New Mangalore.

Meaning of Economic System

An economic system is a mechanism with the help of which the government’s plan and allocate accessible services, resources, and commodities across the country. Economic systems manage elements of production, combining wealth, labor, physical resources, and business people. An economic system incorporates many companies, agencies, objects, models, as well as for deciding procedures.

Types of Economic System

• Capitalist Economy- In a capitalist system the products manufactured are divided among people not according to what people want but on the foundation of Purchasing Power—which is the ability to buy products and services. Which means an individual needs to have the money with him to buy the goods and services. The Low-cost housing for the underprivileged is much required but will not include as demand in the market because the needy do not have the buying power to back the demand. Therefore, the commodity will not be manufactured and provided as per market forces.
• Socialist Economy- This economy system acknowledges the three inquiries in a different way. In a socialist society, the government determines what products are to be manufactured in accordance with the requirements of society. It is believed that the government understands what is appropriate for the citizen of the country, therefore, the passions of individual buyers are not given much attention. The government concludes how products are to be created and how the product should be disposed of. In principle, sharing under socialism is assumed to be based on what an individual need and not what they can buy. A socialist system does not have a separate estate because everything is controlled by the government.
• Mixed Economic – Mixed systems have characteristics of both the command and market economic systems. For this purpose, the mixed economic systems are also called as dual economic systems. However, there is no sincere method to determine a mixed system, sometimes the word represents a market system beneath the strict administrative control in certain sections of the economy.