Overview: India's economy is a mixture of traditional village farming and handicrafts, modern agriculture, old and new branches of industry, and a multitude of support services. It presents both the entrepreneurial skills and drives of the capitalist system and widespread government intervention of the socialist mold. Growth of 4% to 5% annually in the 1980s has softened the impact of population growth on unemployment, social tranquility, and the environment. Agricultural output has continued to expand, reflecting the greater use of modern farming techniques and improved seed that have helped to make India self-sufficient in food grains and a net agricultural exporter. However, tens of millions of villagers, particularly in the south, have not benefited from the green revolution and live in abject poverty. Industry has benefited from a partial liberalization of controls. The growth rate of the service sector has also been strong. India, however, has been challenged more recently by much lower foreign exchange reserves, higher inflation, and a large debt service burden.

GNP: $254 billion, per capita $300; real growth rate 4.5% (1990 est.)

Inflation rate (consumer prices): 10.0% (1990)

Unemployment rate: 20% (1990 est.)

Budget: revenues $34 billion; expenditures $54 billion, including capital expenditures of $13.3 billion (FY91)

Exports: $17.0 billion (f.o.b., FY90); commodities--gems and jewelry, engineering goods, clothing, textiles, chemicals, tea, coffee, fish products; partners--EC 25%, US 19%, USSR and Eastern Europe 17%, Japan 10%

Imports: $24.8 billion (c.i.f., FY90); commodities--petroleum, capital goods, uncut gems and jewelry, chemicals, iron and steel, edible oils; partners--EC 33%, Middle East 19%, Japan 10%, US 9%, USSR and Eastern Europe 8%

External debt: $69.8 billion (1990 est.)

Industrial production: growth rate 8.4% (1990); accounts for about 25% of GDP

Electricity: 70,000,000 kW capacity; 245,000 million kWh produced, 290 kWh per capita (1990)

Industries: textiles, food processing, steel, machinery, transportation equipment, cement, jute manufactures, mining, petroleum, power, chemicals, pharmaceuticals, electronics

Agriculture: accounts for about 30% of GNP and employs 67% of labor force; self-sufficient in food grains; principal crops--rice, wheat, oilseeds, cotton, jute, tea, sugarcane, potatoes; livestock--cattle, buffaloes, sheep, goats and poultry; fish catch of about 3 million metric tons ranks among the world's top 10 fishing nations

Illicit drugs: licit producer of opium poppy for the pharmaceutical trade, but some opium is diverted to illicit international drug markets; major transit country for illicit narcotics produced in neighboring countries

Economic aid: US commitments, including Ex-Im (FY70-89), $4.4 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1980-88), $20.1 billion; OPEC bilateral aid (1979-89), $315 million; USSR (1970-89), $11.6 billion; Eastern Europe (1970-89), $105 million

Currency: Indian rupee (plural--rupees); 1 Indian rupee (Re) = 100 paise

Exchange rates: Indian rupees (Rs) per US$1--18.329 (January 1990), 17.504 (1990), 16.226 (1989), 13.917 (1988), 12.962 (1987), 12.611 (1986), 12.369 (1985)

Fiscal year: 1 April-31 March

NOTE: The information regarding India on this page is re-published from the 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of India Economy 1991 information contained here. All suggestions for corrections of any errors about India Economy 1991 should be addressed to the CIA.