India Country Focus

2424 Words Jun 9th, 2014 10 Pages
Country Focus - India

India is the most populous democracy in the world with nearly 1.2 billion people. Its economy grew 9.4% in the first half of year 2010 and is forecasted to grow 9.7% for the year by IMF (Businessweek). On the one hand, India possesses young and growing workforce, rising income levels and a domestic driven economy that are attracting global investors, on the other hand, issues like rising inflation and poor infrastructure continue to hold back the economy.

Workforce: India has one of the highest numbers of working people in the world. In year 2010, India’s labor force counted to 478 million people second to China which has around 820 million. Young and growing workforce is the driving force behind Indian economy.
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Its population growth rate is around 1.4% with 2.4% people being urbanized every year. Life expectancy of 66 years is among the lowest in the world. The latest available data suggests India’s literacy rate stood at 61% in year 2001 with male literacy rate being higher that female literacy rate. Every year, India spends 3.2% of its GDP on education
Communications & Transportation: As a result of the latest telecom boom, around 670 million people own a cell phone (next to China with 750 million). India has one of the most penetrative Road and Railway infrastructure connecting different parts of the country. The total number of airports stood at 352 in year 2010 and India major sea ports include Chennai, Jawaharal Nehru, Kandla, Kolkata (Calcutta), Mumbai (Bombay), Sikka and Vishakhapatnam (CIA , 2010).
Overall, India has a domestic driven economy, its exports account for just 20% of its GDP compared to China which has exports GDP contribution of 40%. Indian economy is mainly driven by high internal consumer spending which accounts for 60% of its GDP and this fact that the country is less connected to foreign countries makes it even more lucrative during the times of recession.
Exports and Imports
Trade Agreements
India has Trade Agreements with quite a few countries. India currently has Free Trade Agreements with Sri Lanka and Thailand. The plan is to have FTAs with Brunei, Indonesia and
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