INDIA

By:-Dheerajpal Singh Rawat

 INDIA
• India (ISO: Bhārat), also known as the Republic of
India (ISO: Bhārat Gaṇarājya), is a country in South Asia. It
is the seventh largest country by area and with more
than 1.3 billion people, it is the second most
populous country as well as the most populous democracy
in the world. Bounded by the Indian Ocean on the south,
the Arabian Sea on the southwest, and the Bay of
Bengal on the southeast, it shares land borders
with Pakistan to the west; China, Nepal, and Bhutan to the
northeast; and Bangladesh and Myanmar to the east. In the
Indian Ocean, India is in the vicinity of Sri Lanka and
the Maldives, while its Andaman and Nicobar Islands share
a maritime border with Thailand and Indonesia.
MAP
OF
INDIA
 Economy Of India
• The economy of India is a developing mixed
economy. It is the world's seventh-
largest economy by nominal GDP and the third-
largest by purchasing power parity (PPP). The
country ranks 139th in per capita GDP
(nominal) with $2,134 and 122nd in per capita
GDP (PPP) with $7,783 as of 2018. After the 1991
economic liberalisation, India achieved 6-7%
average GDP growth annually. Since 2014 with
the exception of 2017, India's economy has been
the world's fastest growing major economy ,
surpassing China.
 Balance Of Payment
• India’s current account deficit (CAD) stood at US$ 15.8 billion
(2.4 per cent of GDP) in Q1 of 2018-19 as compared with US$
15.0 billion (2.5 per cent of GDP) in Q1 of 2017-18.
• The widening of the CAD on a year-on-year (y-o-y) basis was
primarily on account of a higher trade deficit at US$ 45.7
billion as compared with US$ 41.9 billion a year ago.
• Net services receipts increased by 2.1 per cent on a y-o-y
basis mainly on the back of a rise in net earnings from
software and financial services.
• Private transfer receipts, mainly representing remittances by
Indians employed overseas, amounted to US$ 18.8 billion,
increasing by 16.9 per cent from their level a year ago.
• In the financial account, net foreign direct investment
at US$ 9.7 billion in Q1 of 2018-19 was higher than US$
7.1 billion in Q1 of 2017-18.
• Portfolio investment recorded net outflow of US$ 8.1
billion in Q1 of 2018-19 – as compared with an inflow
of US$ 12.5 billion in Q1 last year – on account of net
sales in both the debt and equity markets.
• Net receipts on account of non-resident deposits
amounted to US$ 3.5 billion in Q1 of 2018-19 as
compared with US$ 1.2 billion a year ago.
• In Q1 of 2018-19, there was a depletion of US$ 11.3
billion of the foreign exchange reserves (on BoP basis)
as against an accretion of US$ 11.4 billion in Q1 of
2017-18
 Foreign Exchange System
• Since Independence, the exchange rate system
in India has transited from a fixed exchange
rate regime where the Indian rupee was
pegged to the pound sterling on account of
historic links with Britain to a basket-peg
during the 1970s and 1980s and eventually to
the present form of market-determined
exchange rate regime since March 1993.
 Role of Central Bank
Reserve Bank of India (RBI) is India's Central
bank. It plays multi-facet role by executing
multiple functions such as :-
Overseeing monetary policy,
Issuing currency,
Managing foreign exchange,
Working as a bank of government and as
banker of scheduled commercial banks,
among others.
 Conclusion
• Economic growth will slow somewhat but remain robust, at
close to 7½ per cent in 2019 and 2020. Higher oil prices and
the rupee depreciation are putting pressure on demand,
inflation, the current account and public finances. However,
business investment and exports will be strong, as past
structural reforms – including the new Insolvency and
Bankruptcy Code, smoother implementation of the Goods and
Services Tax (GST), better roads and electricity and bank
recapitalization – are paying off.
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