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Indian Economy Overview Indian Economy Overview India - Economy and

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Last Updated: July 2010 Related News
Domestic Investments
PC reach doubles in 3
Indian Investments Abroad years: Intel
Agriculture BHEL, IITM to take up joint
According to the estimates by the Ministry of Statistics and Programme
research
Manufacturing Implementation, the Indian economy has registered a growth of 7.4 per
Blackstone invests Rs 1,350
cent in 2009-10, with 8.6 per cent year-on-year (y-o-y) growth in its cr in Moser Baer's energy
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fourth quarter. The growth is driven by robust performance of the biz
Services manufacturing sector on the back of government and consumer Domestic airlines witnessed
Consumer Markets spending. GDP growth rate of 7.4 per cent in 2009-10 has exceeded a 17 per cent growth during
the government forecast of 7.2 per cent for the full year. According to January-July 2010
Union Budget 2010-11 government data, the manufacturing sector witnessed a growth of 16.3 LIC to expand alternative
Railway Budget 2010-11 per cent in January-March 2010, from a year earlier. distribution channels
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Economic Survey 2009-10 Economic activities which showed significant growth rates in 2009-10 60 cr in Quick Heal
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(10.6 per cent), manufacturing (10.8 per cent), electricity, gas and water A'bad operations
supply (6.5 per cent), construction (6.5 per cent), trade, hotels, More>>
transport and communications (9.3 per cent), financing, insurance, real
estate and business services (9.7 per cent), community, social and
personal services (5.6 per cent). The Gross National Income is
Related Resources
estimated to rise by 7.3 per cent in 2009-10 as compared to 6.8 per
cent in 2008-09. The per capita income is estimated to grow at 5.6 per Airports
cent in 2009-10. Automotive
Auto Components
India’s industrial output grew by 17.6 per cent in April 2010. The Banking
manufacturing sector that accounts for 80 per cent of the index of Agricultural Equipment
industrial production (IIP) grew 19.4 per cent in April 2010, as against Manpower Employment
0.4 per cent a year-ago. Outlook Survey (Q3/2010)
73rd CII Business Outlook
Capital goods production grew by 72.8 per cent against a contraction of Survey
5.9 per cent a yearago. Consumer durables output continued to grow at More>>
a fast pace of 37 per cent, mirroring higher purchase of goods such as
televisions and refrigerators.

The Economic scenario Related Websites

Ministry of Finance
The number of registered foreign institutional investors (FIIs) was 1710 Mint
as on May 31, 2010 and the total FII inflow in equity during January to The Financial Express
May 2010 was US$ 4606.50 million while it was US$ 5931.80 million in Business Standard
debt. The Hindu Business Line
The Economic Times
Net investment made by FIIs in equity between June 1, 2010 and June
14, 2010 was US$ 530.05 million while it was US$ 875.73 million in
debt.

As on June 4, 2010, India's foreign exchange reserves totalled US$

271.09 billion, an increase of US$ 9.88 billion over the same period last
year, according to the Reserve Bank of India's (RBI) Weekly Statistical
Supplement.

Moreover, India received foreign direct investment (FDI) worth US$

25,888 million during April-March, 2009-10, taking the cumulative
amount of FDI inflows during August 1991 - March 2010 to US$ 1,
32,428 million, according to the Department of Industrial Policy and
Promotion (DIPP).

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Indian Economy Overview
The services sector comprising financial and non-financial services
attracted 21 per cent of the total FDI equity inflow into India, with FDI
Best Multilevel
worth US$ 4,392 million during April-March 2009-10, while construction
Marketing
activities including roadways and highways attracted second largest
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amount of FDI worth US$ 2,868 million during the same period. Housing
Products Revolutionary
and real estate was the third highest sector attracting FDI worth US$
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2,844 million followed by telecommunications which garnered US$
2,554 million during the financial year 2009-10.
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http://www.ibef.org/artdispview.aspx?in=36&art_id=26289&cat_id=14...
Exports from India were worth US$ 16,887 million in April 2010,
36.2 per cent higher than the level in April 2009, which touched
US$ 12,397 million, according to the Ministry of Commerce and
Industry. India's imports during April 2010 were valued at US$
27,307 million representing a growth of 43.3 per cent over April
2009.
India's logistics sector is witnessing increased activity—the
country's major ports handled 560,968 metric tonnes (MT) of
cargo during April-March 2009-10, an increase of 5.74 per cent
over previous year traffic, according to revised estimates
released by the Ministry of Shipping.
Foreign tourist arrivals in India during the month of May 2010
were 345,000, an increase of 15.5 per cent over May 2009.
Foreign tourist arrivals during January-May 2010 were 2.263
million, an increase of 11.3 per cent over the corresponding
period last year. Foreign exchange earnings during May 2010
were US$ 951 million, an increase of 42.2 per cent over May
2009. Foreign exchange earnings during January-May 2010
were US$ 5822 million, an increase of 38.3 per cent over the
corresponding period last year, according to data released by
the Ministry of Tourism.
The total telephone subscriber base in the country reached
638.05 million in April 2010, taking the overall tele-density to
54.10, according to the figures released by the Telecom
Regulatory Authority of India (TRAI). Also the wireless
subscriber base increased to 601.22 million.
According to the latest statistics from the Association of Mutual
Funds in India (AMFI), the assets under management (AUM) of
mutual funds were worth US$ 170.46 billion in May 2010 as
compared to US$ 135.58 billion in May 2009.
As per NASSCOM’s Strategic Review 2010, the BPO sector
continues to be the fastest growing segment of the industry and
is expected to reach US$ 12.4 billion in 2009-10, growing at 6
per cent.
According to data released by Society of Indian Automobile
Manufacturers (SIAM), the total number of vehicles including
passenger cars, commercial vehicles, two wheelers and three
wheelers produced in 2009-10 was 14,049,830, as compared to
11,172,275 produced in 2008-09.
According to the Gem and Jewellery Export Promotion Council,
the exports of gems and jewellery from India including rough
diamonds, rose by 57.08 per cent during April-May 2010 to
touch US$ 5551.24 million.
According to the Ministry of Civil Aviation, domestic airlines
carried 211,380 passengers between January-May 2010, an
increase of 21.95 per cent over 173,340 passengers carried in
the same period last year.
The number of corporate merger & acquisitions (M&As) and
private equity (PE) transactions, have more than doubled during
January-May 2010. 439 M&A and PE deals valuing over US$
30 billion took place between January-May 2010 as compared
to 179 deals worth US$ 8.1 billion in the corresponding period in
2009.
The HSBC Markit Business Activity Index, which measures
business activity among Indian services companies, based on a
survey of 400 firms, rose to 62.1 in April 2010, its highest since
July 2008, and compared with 58.1 in March 2010.
8/22/2010 9:49 AM
Indian Economy Overview http://www.ibef.org/artdispview.aspx?in=36&art_id=26289&cat_id=14...

Agriculture

Agriculture is one of the strongholds of the Indian economy and

accounted for 15.7 per cent of the country's gross domestic product
(GDP) in 2008-09, and 10.23 per cent of the total exports. Moreover, it
provided employment to 58.2 per cent of the work force.

Production of foodgrains during 2009-10 is estimated at 216.85 million

as per second Advance Estimates.

In the Union Budget 2010-11, the Finance Minister, Mr Pranab

Mukherjee made the following announcements for the agriculture
sector.

US$ 86.89 million is provided to increase the Green Revolution

to the eastern region of the country comprising Bihar,
Chattisgarh, Jharkhand, Eastern up, West Bengal and Orissa.
US$ 65.17 million has been provided to organise 60,000 pulses
and oil-seed villages in rain-fed areas in 2010-11 and provide
an integrated intervention for water harvesting, watershed
management and soil health to improve productivitiy of the dry
land farming areas.
Banks have been consistently meeting the targets set for
agricultural credit flow in the past few years. For the year
2010-11, the target has been set at US$ 81.47 billion.
In addition to the 10 mega food park projects already being set
up, the government has decided to set up five more such parks.
External commercial borrowings are available for cold storage
for preservation or storage of agricultural and allied products,
marine products and meat.

Growth potential story

The data centre services market in the country is forecast to

grow at a compound annual growth rate (CAGR) of 22.7 per
cent between 2009 and 2011, to touch close to US$ 2.2 billion
by the end of 2011, according to research firm IDC India’s report
published in March 2010. The report further stated that the
overall India data centre services market in 2009 was estimated
at US$ 1.39 billion.
According to a report by research and advisory firm Gartner
published in March 2010, the domestic BPO market is expected
to grow at 25 per cent in 2010 to touch US$ 1.2 billion by 2011.
Further, the BPO market in India is estimated to grow 19 per
cent through 2013 and grow to US$ 1.8 billion by 2013.
According to the report, the domestic India BPO services market
grew by 7.3 per cent year-on-year in 2009.
The BMI India Retail Report Quarter 3, 2010 released in May
2010, forecasts that total retail sales will grow from US$ 353.0
billion in 2010 to US$ 543.2 billion by 2014.
According to a report titled 'India 2020: Seeing, Beyond',
published by domestic broking major, Edelweiss Capital in
March 2010, stated that India's GDP is set to quadruple over the
next ten years and the country is likely to become an over US$
4 trillion economy by 2020.
India will overtake China to become the world's fastest growing
economy by 2018, according to the Economist Intelligence Unit
(EIU), the research arm of London-based Economist magazine.

Exchange rate used: 1 USD = 47.14 INR (as on June 2010)

Disclaimer: This information has been collected through secondary research

and IBEF is not responsible for any errors in the same.

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Indian Economy Overview http://www.ibef.org/artdispview.aspx?in=36&art_id=26289&cat_id=14...

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