A snapshot
Embassy of India, Vienna
Snapshot of India India, a South Asian nation, is the seventh-largest country by area, the second-most populous country with over 1.33 billion people. After getting freedom form British rule in 1947, India has achieved landmark progress in the socio-political and economic domain during last 70 years. The literacy rate has grown to 74 % in 2011 from 12% in 1947. During the same period, the life expectancy has reached 66.9 years from 32 years in 1947. India is the largest market democracy of the world. India also adopted universal suffrage in 1947 with equal voting rights to men and women to vote from the age of 18 years. About 834 million voters participated in the last general election of 2014. Non-discrimination, equality, freedom of speech, affirmative action and welfare schemes have been the focal points through the years to build Indian democracy. In 1947, India was a net importer of food grains. One of the first objectives was to achieve self-sufficiency in food grain productions. India produced about 50 million tonnes of food grains in 1947 and now produces five times that quantity. India had accounted for only 3% of the world’s GDP at the time of its independence. In 2017, India accounts for 8.5% of WGDP. Presently, India is the third largest economy of the world in terms of per capita purchasing power parity. India is the fastest growing economy among the bigger countries. New initiatives of the Government of India; such as Make in India, Skill India, Digital India etc., are opening further business opportunities in India. India’s geographical area covers an area of 32,87,263 sq. km (1,269,346 sq. mi), extending from the snow-covered Himalayan heights to the tropical rain forests of the south. From the Great Himalayas in the north, it stretches southwards across the Tropic of Cancer and tapers off into the Indian Ocean between the Bay of Bengal on the east and the Arabian Sea on the west, close to equator. Lying entirely in the northern hemisphere, the mainland extends between latitudes 8° 4' and 37° 6' north and longitudes 68° 7' and 97° 25' east. India has a land frontier of about 15,200 km. The total length of the coastline of the mainland, Lakshadweep and Andaman & Nicobar Islands is 7,516.6 km. The climate of India can broadly be classified as a tropical monsoon one. But, in spite of much of the northern part of India lying beyond the tropical zone, the entire country has a tropical climate marked by relatively high temperatures and dry winters. Natural Resources: Coal (fourth-largest reserves in the world), iron ore, manganese, mica, bauxite, rare earth elements, titanium ore, chromite, natural gas, diamonds, petroleum, limestone, arable land. Land: 2,973,190 sq. km
Water: 314,070 sq. km 2
Republic of India Government Type
Sovereign Socialist Secular Democratic Republic with a Parliamentary system.
Capital
New Delhi
Administrative Divisions
29 States and 7 Union Territories.
Independence
15th August 1947 (From the British Colonial Rule)
Constitution
The Constitution of India came into force on 26th January 1950.
Legal System
The Constitution of India is the fountain source of the legal system in the Country.
Executive Branch
The President of India is the Head of the State, while the Prime Minister is the Head of the Government, and runs office with the support of the Council of Ministers who form the Cabinet Ministry.
Legislative Branch
The Indian Legislature comprises of the Lok Sabha (House of the People) and the Rajya Sabha (Council of States) forming both the Houses of the Parliament.
Judicial Branch
The Supreme Court of India is the apex body of the Indian legal system, followed by other High Courts and subordinate Courts.
Flag Description
The National Flag is a horizontal tri-colour of deep saffron (kesaria) at the top, white in the middle, and dark green at the bottom in equal proportion. At the centre of the white band is a navy blue wheel, which is a representation of the Ashoka Chakra at Sarnath.
National Days
26th January (Republic Day) 15th August (Independence Day) 2nd October (Gandhi Jayanti; Mahatma Gandhi's Birthday)
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Demographic Profile Population
1,21 Billion (623.7 million males and 586.4 million females) including Youth Population- 34.8% [census 2011]
Growth Rate
Average annual exponential growth rate stands at 1.64 % during 2001-2011 and 1.2 % (2015)
Birth Rate
The Crude Birth rate was 18.3 in 2009.
Death Rate
The Crude Death rate was 7.3 in 2009.
Life Expectancy Rate
66.9 years (men), 69.9 years (women) (2015 – WHO 2016 Report)
Sex Ratio
940 females per 1000 males according to 2011 census
Ethnic Groups
All the five major racial types -Australoid, Mongoloid, Europoid, Caucasian, and Negroid find representation among the people of India.
Religions
Hindus constituted the majority with 80.5%, Muslims came second at 13.4%, followed by Christians, Sikhs, Buddhists, Jains, and others.[2001 census]
Languages
22 different languages have been recognized by the Constitution of India, of which Hindi is an Official Language. Article 343(3) empowered Parliament to provide by law for continued English as official language
Literacy
According to the provisional results of the 2011 census, the literacy rate in the Country stands at 74.04 %, 82.14% for males and 65.46% for females.
Education Network
Indian higher education system is one of the largest in the world with 713 universities, 36,739 colleges and 11,343 diploma-level institutions.79% of total Enrollment in higher education during 2014-15.
India's labour force
Expected to touch 160-170 million by 2020, based on rate of population growth and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.
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Economic Profile India has emerged as the fastest growing major economy in the world as per the International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. India’s GDP increased 7.1 % in 2016-17 and is expected to reach a growth rate of 7 % by September 2018. 3rd largest Startup base: India has retained its position as the third largest startup base in the world with over 4,750 technology startups, with about 1,400 new start-ups being founded in 2016, according to a report by NASSCOM. Growth Rate
Indian economy is expected to grow at a rate of 6.7 % in the year 2017-18 and in 2018-19, the economy is expected to grow at a rate of 7.2 %.
Gross Value Added (GVA) Composition by Sector (2016-17 PE) Services
Services (53.7%), Industry (31.2%) & Agriculture (15.2%)
Gross Fixed Capital Formation (GFCF) at current prices
Gross Fixed Capital Formation (GFCF) at current prices stood at US$ 167.22 billion in First quarter of 2017-18.
Value of Exports
Indian exports of merchandise shipments is expected to reach US$ 325 billion in 2017-18. By 2020, India's share in world trade is expected to double from the present level of 3 %.
Export Partners
US, Germany, UAE, China, Japan, Thailand, Indonesia and European Union. India is also tapping newer markets in Africa and Latin America.
Exchange Rates
Indian rupees per US dollar - 1 USD = 63.9273 INR (December 29, 2017)
India's foreign exchange reserves were
US$ 422.53 billion on 23 March 2018 [RBI]
Fiscal Year
April 01 – March 31
Cumulative FDI Equity Inflows:
US$ 357.345 billion (April 2000 to September 2017)
Share of Top Investing Countries FDI Equity Inflows
Mauritius (34 %), Singapore (17 %), UK (7 %), Japan (7 %), USA (6 %), Netherlands (6 %), Germany (3 %), Cyprus (3 %), France (2 %), UAE (1 %) (April 2000 – September 2017)
Major Sectors Attracting Highest FDI Equity Inflows
Services Sector (17 %), Telecommunications (8 %), Computer Software and Hardware (8 %), Construction Development (7 %), Automobile (5 %), Drugs and Pharmaceuticals (4 %), Chemicals (4 %), Trading (4 %), Power (3 %), Construction Activities (3 %) (April 2000 – June 2017) 5
Recent Development M&A activity: The M&A activity was increased 53.3 % to US$ 77.6 billion in 2017 while Private Equity (PE) deals reached US$ 24.4 billion. Indian companies raised US$ 24.96 billion through primary market in 2017. Upgraded Sovereign rating: Moody upgraded India’s sovereign rating after 14 years to Baa2 with a stable economic outlook. Highest inflow of FDI: India received the highest ever inflow of equity in the form of Foreign Direct Investments (FDI) worth US$ 43.4 billion in 2016-17 and has become one of the most open global economies . Net Foreign Institutional Investments: India received net investments of US$ 17.412 million from FIIs between April-October 2017. Private investments: The World Bank has stated that private investments in India is expected to grow by 8.8 % in FY 2018-19 to overtake private consumption growth of 7.4 %. Impact investments projection: Indian impact investments may grow 25 % annually to US$ 40 billion from US$ 4 billion by 2025, as per Global Impact Investing Network's (GIIN’s) advisor for South Asia. Spending on CSR: The top 100 companies in India are leading in the world in terms of disclosing their spending on Corporate Social Responsibility (CSR), according to a 49-country study by KPMG. Improving ranking in the Doing Business Report: India has improved its ranking in the World Bank's Doing Business Report by 30 spots over its 2017 ranking and is ranked 100 among 190 countries in 2018 edition of the report. Improving ranking in per capita GDP: India's ranking in the world has improved to 126 in terms of its per capita GDP, based on Purchasing Power Parity (PPP) as it increased to US$ 7,170 in 2017 as per data from the International Monetary Fund. Improving delivery by Direct Benefit Transfers (DBT): With the aim of reforming delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of information/funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud DBT was started on 1st January, 2013. The Government of India has saved US$ 10 billion in subsidies through DBT with the use of technology, Aadhaar and bank accounts.. Increasing startups: India is expected to have 100,000 startups by 2025, which will create employment for 3.25 million people and US$ 500 billion in value, as per the Chairman of Manipal Global Education. The total projected expenditure of Union Budget 2018-19 is Rs 23.4 lakh crore (US$ 371.81 billion), 9 % higher than previous year's budget, as laid out in the Medium Term Expenditure Framework.
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Recent Developments Central Goods and Services Tax: Biggest tax reforms since independence for a common market under the unified indirect tax structure, Central Goods and Services Tax was rolled out in 2017. As per decision of the GST Council, e-Way Bill system became mandatory from 1st April, 2018 for all inter-State movement of goods. Merchandise exports: Indian merchandise exports in dollar terms registered a growth of 30.55 % year-on-year in November 2017 at US$ 26.19 billion, according to Ministry of Commerce & Industry. 3rd largest consumer economy: India is expected to be the third largest consumer economy as its consumption may triple to US$ 4 trillion by 2025, owing to shift in consumer behavior and expenditure pattern, according to a Boston Consulting Group (BCG) report; and is estimated to surpass USA to become the second largest economy in terms of Purchasing Power Parity (PPP) by the year 2040 [Price water house Coopers]. JAM Number Trinity: Jan Dhan Yojana, Aadhaar, Mobile can enable the State to transfer financial resources to the poor in a progressive manner without leakages and with minimal distorting effects. Mobile Penetration: With over 900 million cell phone users and close to 600 million unique users, mobile money offers a complementary mechanism of delivering direct benefits to a large proportion of the population. And this number is increasing at a rate of 2.82 million per month. Civil aviation sector: Major initiatives are; implementation of Public Private Partnership (PPP) projects at four airports of the AAI, setting up of greenfield airports and development of small airports in tier II & III cities. Demonetization : A Revolutionary step where entire nation came together to uproot the cancer of corruption, black money and terrorism. Recapitalize public sector banks: The Government of India has decided to invest US$ 32.9 billion to recapitalize public sector banks over the next two years and US$ 109.31billion for construction of new roads and highways over the next five years. Declining unemployment rate: India's unemployment rate has declined to 4.8 per cent in February 2017 compared to 9.5 per cent in August 2016, as a result of the Government's increased focus towards rural jobs and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. Initiatives for improving quality of Higher Education: Various initiatives like the National Institutional Ranking Framework (NIRF), Impacting Research Innovation & Technology (IMPRINT), Global Initiative of Academic Networks (GIAN), Technical Education Quality Improvement Programme (TEQIP), National Digital Library, Campus Connect Programme and others have been launched by the Government of India over the years to improve the quality of higher education in the country.
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Government Initiatives Make in India initiative: The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 % of the GDP from the current 17 %. Clean India: With an aim to provide sanitation facilities to every family including toilets, solid and liquid waste system, village cleanliness and safe and adequate drinking water supply. Skill India initiative: Skill building is the basic and foremost step that would eventually lead to the success of Make in India. The programme aims to reduce the drudgery of people in their daily lives belonging to rural and backward areas of the country, facilitate new avenues of employment generation and income generating activities through S & T intervention. Digital India initiative: Government has come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy. Road connectivity to village: India has succeeded in providing road connectivity to 85 % of the 178,184 eligible rural habitations under its Pradhan Mantri Gram Sadak Yojana since its launch in 2014. US$ 15.62 billion is expected expenditure for this scheme during FY 18-20. Rural Electrification: An additional number of 15,183 villages have been electrified in India between April 2015-November 2017 and complete electrification of all villages is expected by May 2018. Cheaper rate electricity to households: Under implementation through a new scheme, named 'Sasti Bijli Har Ghar Yojana' with an outlay of US$ 2.64 billion, to provide electricity to around 40 million un-electrified households in the country. Formalization of Savings: Under scheme Jan Dhan Yojana, 300 million bank accounts have been opened with savings amounting to US$ 100 billion. Rural development: The Government plans to facilitate partnerships between gram panchayats, private companies and other social organisations, to push for rural development under its 'Mission Antyodaya' and has already selected 50,000 panchayats across the country . Ujala: Under this programme 272.5 million LED bulb have been distributed since 2015 at affordable price, 35,400 Million units of electricity saved per year. Steadily reducing Fiscal deficit: The fiscal deficit of the Government of India, which was 4.5 % of the Gross Domestic Product (GDP) in 2013-14, has steadily reduced to 3.5 % in 2016-17 and is expected to further decrease to 3.2 % of the GDP in 2017-18, according to the Reserve Bank of India (RBI). 8
Focusing renewable sources: India is planning to achieve 40 % of its energy from non-fossil sources by 2030 (currently 30 %) and also have plans to increase its renewable energy capacity from 57 GW to 175 GW by 2022. India's National Solar Mission being scaled up five-fold to 100,000 MW. Clean energy cess doubled to US$ 1.61 per tonne to mop up US$ 2.74 billion in NCEF. Aadhar scheme: 95 % of 1.2 billion Indians are under Aadhar scheme; One of the world’s Largest Social Security. Mission Indradhanush: The Mission was launched in 2014 to cover all those children who have been partially vaccinated or not vaccinated during routine immunization rounds. The objective of this Mission is to increase full immunization coverage in India to at least 90% children by 2020. Four rounds have been implemented so far. Smart City Mission: Launched on 25th June, 2015. Innovation and meritocracy in the project by inviting cities to participate in an open competition, instead of handpicking them opaquely. [Total Winning Proposals: 60 Total Urban Population Impacted :72 million] 100% FDI in e-commerce retailing: The government has permitted 100 per cent FDI in the marketplace format of e-commerce retailing. Bharatmala: A new umbrella program for the highways sector that focuses on optimizing efficiency of road traffic movement across the country by bridging critical infrastructure gaps. A round 24,800 km are being considered in Phase-I of Bharatmala. In addition this also includes 10,000 km of balance road works under National Highways Development Project (NHDP). KEY FEATURES OF THE BHARATMALA’S SCHEME Improving the quality - The launch of the scheme has been done for bring a new wave of development in the nation in the form of well-maintained and developed roads. Integrated scheme - The Bharatmala is the name that is given to the road development and it will include many other related schemes as well. With the completion of all the schemes, the overall success of the scheme will be guaranteed. Total tenure of the program -The central government has the plans of finishing the scheme within a span of five years. Thus, all is set for finishing the first phase before the end of 2022. Constriction on a daily basis - To finish the first phase in time, the respective department has made efforts of constructing at least 18 km of path on a daily basis. To beat the clock, continued efforts are being made to raise it to 30 km/day. Different categories of road construction - It has been highlighted in the official draft of the scheme that to provide better connectivity, the construction of various categories of roads will be undertaken. 9
Reasons for Invest in India
India to remain one of the fastest growing economies in the world. [Source: International Monetary Fund]
FDI inflows increased by 37% since the launch Make in India initiative. [Source: Department of Industrial Policy and
Promotion, Government of India]
Leading investors ranked India as the most attractive market. [Source: Ernst & Young Emerging Markets Center] 10
Largest youth population in the world
India to have world’s largest youth population by 2020.[Source: United Nations Population Fund]
India to be the largest supplier of university graduates in the world by 2020. [Source: British Council]
India has the third largest group of scientists and technicians in the world. [Source: All India Management Association & The Boston Consulting Group] 11
Huge Domestic Market
Rising affluence is the biggest driver of increasing consumption in India. [Source: Boston Consulting Group]
India’s consumer story will be led by its 129 mn urban mass consumers [Source: Goldman Sachs Group]
Private consumption will be four times by 2025. [Source: McKinsey Global Institute]
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Rising economic influence
Centre of global maritime trade to move from the Pacific to the Indian Ocean Region. India and China will be the largest manufacturing hubs of the world by 2030 [Source: Lloyd’s Register Marine & University of Strathclyde, Glasgow]
Connectivity to Central Asia and Europe via the International North-South Transport Corridor (INSTC) [Source: Press Information Bureau, Government of India]
In next five years, India to have greater economic influence across the Asia Pacific region [Source: Baker McKenzie & Mergermarket Group]
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Indian Infrastructure Story Planed Investment
Highways (Bharatmala NHDP) - USD 106.5 bn
&
Railways - USD 131.7 bn
Ports - USD 61.5 bn (Port development) + USD123 bn
Airports - USD 58 bn
Industrial Corridors - USD 100 bn (DMIC - phase I)
Smart Cities -USD 14.6 bn
Clean India - USD 29 bn
Over the next three decades more than 350 mn Indians will move into cities. [Source: McKinsey Global Institute]
Over the next two decades more than USD 1.5 tn investments planned for infrastructure. [Source: Press Information Bureau India]
Investments planned across the key government initiatives in various sectors. [Source: Government of India]
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Business Friendly Government
India ranks 1st among South Asian Countries and 40th on Global Competitiveness Index (GCI) 2016-17. [Source: World Economic Forum]
India registered a record improvement on EoDB ranking from 142 to 100 between 2014-2017 [Source: World Bank]
Among the top 50 countries globally on five out of 12 pillars measured by the Global Competitiveness Index. The pillars are institutions (#39), financial market development (#42), market size (#3), business sophistication (#39) and innovation (#29). 15
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For more information please contact: Embassy of India, Vienna Kärntner Ring 2, 1010 Vienna Tel: +43-1-5058666 comm.vienna@mea.gov.in, comm1.vienna@mea.gov.in
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