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Economy of India

The economy of India is the tenth-largest in the world by nominal GDP and the thirdlargest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. On a per-capita-income basis, India ranked 141 by nominal GDP and 130th by GDP (PPP) in 2012, according to the IMF. In 2012, the country's per capita income stood at $1,491 141st in the world, thus making a lower-middle income economy.

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India is the nineteenth largest exporter and tenth largest importer in the world. Economic growth rate slowed to around 5.0% for the 201213 fiscal year. It is to be noted that India's GDP grew by an astounding 9.3% in 201011. Thus, the growth rate has nearly halved in just three years. GDP by sector ; agriculture: 17.2%, industry: 26.4%, services: 56.4% (2011 est.)

The strengths like rich natural resource base that comprises of valuable resources like coal, iron ore, water, limestone, granite, Manganese, Mica, Chromites, Bauxite, Titanium ore, Natural gas, Petroleum, Diamonds and Thorium. These energy resources promise a significant future potential for the Indian economy Some other strengths of the Indian economy are the growing education system, English language proficiency, strong tertiary education, great record of software development, government support and policies, process quality focus, skilled workforce, cost advantage, entrepreneurship, expansion of existing relationships, leverage relationships in West to access overseas markets and Indian domestic-market growth.

The weakness of India is the continuing public-sector budget deficit, which is nearly 5.2% of GDP. population, poverty, political corruption, poor infrastructure, caste system

Strengths:
Huge pool of labour force High percentage of cultivable land Diversified nature of the economy Huge English speaking population, availability of skilled manpower Extensive higher education system, third largest reservoir of engineers

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High growth rate of economy Rapid growth of IT and BPO sector bringing valuable foreign exchange Abundance of natural resources

Weakness:
Very high percentage of workforce involved in agriculture which contributes only 17.2% of GDP Around a quarter of a population below the poverty line -29.8% (2010 est.). Ranks 72 High unemployment rate :9.9% (2012 est.) prevalence of inequality in socio economic conditions Poor infrastructural facilities

Contd...
Low productivity Huge population leading to scarcity of resources -1.27 billion Low level of mechanization Red tapism, bureaucracy Low literacy rates -74.04 Unequal distribution of wealth Rural-urban divide, leading to inequality in living standards

Opportunities:
Scope for entry of private firms in various sectors for business Inflow of Foreign Direct Investment is likely to increase in many sectors Huge foreign exchange earning prospect in IT sector Investment in R&D, engineering design Area of biotechnology Huge population of Indians in foreign countries (NRIs)

Contd..
Area of infrastructure Huge domestic market: opportunities for MNCs for sales Huge natural gas deposits found in India, natural gas as a fuel has tremendous opportunities Vast forest area and diverse wildlife Huge agricultural resources, fishing, plantation crops, livestock

Threats:
High fiscal deficit :5.2% of GDP (201112)

Threat of government intervention in some states Volatility in crude oil prices across the world Growing import bill Population still high- 1.22 billion Agriculture excessively dependent on monsoons

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