The Indian economy is the third¹ largest in the world after the United States and China and also among the fastest growing large economies, accounting for approx. 5.7 per cent of the world's GDP. India's economy grew by 6.8 per cent in 2018-19 compared to a slightly better 7.2 per cent in the previous year, however the growth rate fell to 4.2 per cent in 2019-20 partly due to the looming COVID-19 lockdown and is expected to contract significantly in 2020-21. India's fiscal deficit stood at 3.4 per cent of GDP (ca ₹ 6.4 trillion) in 2018-19.
India's tax revenue to GDP ratio remains low at around 11 % (2017) in comparison to a world average of approx. 15 % (2018). The Government of India's direct tax collections amounted to approx. ₹10.27 trillion in 2019-20. A significant section of the employed workforce is exempt from any income tax as the tax exemption limit (based on annual income) has been raised to ₹250 000 (₹300 000 for senior citizens aged between 60 and 80 years and ₹500 000 for those aged at least 80 years) in 2020-21. 327 million Indian residents have a PAN (Permanent Account Number).¹ based on Purchasing Power Parity adjusted IMF figures
|Sector||Share (%)||₹ Trillion||USD Billion|
|Agriculture, Forestry and Fishing||17.4||23.72||375|
|Mining & Quarrying||2.2||30.19||48|
|Electricity, Gas, Water Supply & Other Utility||2.5||3.42||54|
|Trade, Hotels, Transport, Communication and Services Related to Broadcasting||18.4||25.20||398|
|Financial, Real Estate and Professional Services||21.1||28.89||456|
|Public Administration, Defence and Other Services||14.2||19.46||307|
The number of factories operating in India was 230 000 in 2014-15. These factories employed approx. 13.8 m persons and had a total output value of approx. ₹ 69 trillion. The small-scale industries sector included approx. 51 m units in 2014-15 and employed roughly 117 m persons. Value of production was around ₹ 18 trillion in 2012-13.
India's merchandise exports and imports were valued at USD 291 billion and USD 389 billion respectively for the year ended Mar '21. In 2015 India's share of global merchandise exports was approx. 1.6 per cent and 3.3 per cent of global commercial services exports. India's five largest trading partners were the United States (USD 89 bn), China (USD 82 bn), UAE (USD 60 bn), Saudi Arabia (USD 34 bn) and Hong Kong (USD 31 bn) in 2019-20. Commercial services valued at USD 203 bn were exported from India in 2020/21 while service imports amounted to USD 117 bn. Services exports include IT related services, business services, transport and travel services.
More data on foreign trade is available at the Directorate General of Commercial Intelligence and Statistics website.
Seven Indian companies, namely Indian Oil, Reliance Industries Ltd., BPCL, HPCL, ONGC, Tata Motors and Rajesh Exports are listed on the Fortune Global 500 list for the year 2016. India's largest company, Indian Oil, with a turnover of USD 54.7 bn, placing it at the 161st position on the list.
|Company||Revenue (₹ bn)||Profit
(₹ billion) ²
|Indian Oil||4 243||222||1 504|
|Reliance Industries||4 103||361||8 352|
|ONGC||3 331||221||2 130|
|State Bank of India||3 065||-46||3 068|
|Tata Motors||3 012||90||474|
|Bharat Petroleum||2 386||90||8 384|
|Hindustan Petroleum||2 217||72||467|
|Rajesh Exports||1 878||13|
|Tata Steel||1 472||134||604|
|Coal India Ltd.||1 329||70||1 572|
|TCS||1 267||258||8 460|
|Larsen & Toubro||1 227||74||2 142|
|ICICI Bank||1 190||77||2 695|
|HDFC Bank||1 013||185||3 766|
|Mahindra & Mahindra||964||75||792|
|Bharti Airtel||867||11||1 813|
|Maruti Suzuki India||820||79||2 034|
² As on 14/06/19
Source: Fortune India 500
India's steel production capacity had increased to approx. 118 MMT by April 2016. India was the second largest (PRC ranking as the largest producer) steel producer in the world and the ninth largest steel exporter in 2019. India accounted for over five per cent of world steel production in 2020. Major Indian steel companies include SAIL, Tata Steel, Jindal Steel and Power, JSW Steel, Essar Steel, Rashtriya Ispat Nigam and Ispat Industries (RINL).
A view of the Vizag Steel Plant located just south of the port city of Visakhapatnam, Andhra Pradesh. The plant rolls out ca 4 million tons of saleable steel with an annual capacity of 6.3 MMT.
India's proved coal reserves (incl. anthracite, bituminous, sub-bituminous and lignite) were estimated to be approx. 315 billion tonnes in 2017. Thermal power utilities are the largest consumers of coal (approx. 2/3 of production) followed by the steel and cement industries. Coal India Ltd, the world's largest coal mining company, registered a revenue of ₹ 1.05 trillion in 2018-19 while coal production stood at 607 million tons. Coal production has increased from 30 million tonnes in 1947 to 675 million (incl. lignite) tonnes in 2017-18 making India the second largest producer and consumer behind China.
India has approx. ½ billion tonnes of recoverable reserves of copper.
India is the second largest cement producing nation in the world after China. Foreign players in the cement market include Lafarge, Italcementi, Holcim and Heidelberg Cement. The industry's turnover is around ₹ 300 billion providing direct employment to 150 000 persons. India is capable of producing cement to any standard requirements (BS, ASTM, DIN). Major cement producers include UltraTech Cement, JSW Group, ACC, Grasim Industries and Gujarat Ambuja.
The Indian textile industry is one of the largest of its kind in the world and the largest yarn producer. The industry's total output is valued at approx. ₹1.6 trillion (exports account for roughly a third of total output) and provides direct employment to around 45 million people and a further 60 million jobs in allied sectors. India exported approx. USD 40 bn (ca 12 per cent of total exports) worth of textiles and clothing/handicrafts in 2018-19. The appreciation of the Indian rupee against the weakening US dollar has hit hard on many textile and apparel exporters facing fierce competition from other low-cost competing nations such as Bangladesh and China.
The chemical industry includes the following sectors: Basic inorganic and organic, drugs and pharmaceuticals, pesticides and agrichemicals, petrochemicals, dyes and pigments, fine and speciality chemicals and fertilizers. New sunrise sectors include nutraceuticals and biotechnology.
India's ₹330 billion fertilizer industry has a capacity to manufacture 17.4 million tonnes of N and P ranking India as the third largest N and P producer. Potassic fertilizers form the bulk of the two million tons of fertilizers India imported during 2003-04.
India's approx. ₹400 billion pharmaceuticals industry (fourth largest in the world in terms of volume) has recently drawn more attention due to its generic drug products penetration in many foreign markets (22 per cent world market share in 2001). Registered Indian pharma companies number over 10 000 both in the SME and large enterprise sectors. Bulk drugs are produced in large volumes and India is as an example the largest ibuprofen manufacturer. Pharmaceuticals exports amounted to over USD 13.2 billion in 2011--12, the US being the largest market. India now recognizes all patents obtained after 1995. This could have an adverse effect on the operations of some generic drug manufacturers whose business has solely rested on reverse engineering drugs. India's retail pharma sales amounted to ₹28.5 bn in Feb '09. Hospital and institute drug sales are estimated at ₹70 bn pa. The largest domestic companies are Cipla, Ranbaxy, GlaxoSmithKline and Piramal Healthcare.
India's automotive sector contributes has grown into a multi-trillion Rupee industry having produced 24.5 million units during 2018-19. Read more on the auto industry at knowIndia.net's auto page >>
India exported gems and jewellery worth USD 32 billion in 2015-16. Cut and polished diamonds took the lion's share of exported gem and gold products. India is by far the largest diamond cutting and polishing center in the world and the largest consumer of gold. The recent slump in global diamond demand has a resulted in massive layoffs in the diamond processing units based mainly in Surat.
India's paper industry produced an estimated 4.1 million tons of paper and paper board products in 2006-07. Total paper consumption amounted to approx. 18.6 m tons in 2018-19. India's paper, paperboard and newsprint exports and imports in 2018-19 amounted to approx. 1.5 m tons and 2.8 m tons respectively.
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