- World's largest democracy with 1.2 billion people.
- Stable political environment and responsive administrative set up.
- Well established judiciary to enforce rule of law.
- Land of abundant natural resources and diverse climatic conditions.
- India's growth will start to outpace China's within three to five years and hence will become the fastest large economy with 9-10 per cent growth over the next 20-25 years (Morgan Stanley).
- Investor friendly policies and incentive based schemes.
- India's economy will grow fivefold in the next 20 years (McKinsey).
- Cost competitiveness; low labour costs.
- Total labour force of nearly 530 million.
- Large pool of skilled manpower; strong knowledge base with significant English speaking population.
- Young country with a median age of 30 years by 2025: India's economy will benefit from this "demographic dividend".
- The proportion of population in the working age group (15-59 years) is likely to increase from approximately 58 per cent in 2001 to more than 64 per cent by 2021.
- Huge untapped market potential.
- The urban population of India will double from the 2001 census figure of 290 m to approximately 590 m by 2030 (McKinsey).
- Progressive simplification and rationalization of direct and indirect tax structures.
- Reduction in import tariffs.
- Full current account convertibility.
- India is member of WTO.
- Robust banking and financial institutions.
- The "2012 A.T. Kearney Foreign Direct Investment Confidence Index" has ranked India second most attractive destination for FDI , an improvement from its third rank in the year 2010.
"* India's financial year is from April to March. 2010-11 above means April 2010-March 2011."
India has undergone a paradigm shift owing to its competitive stand in the world. The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.
According to Ministry of Statistics and Programme Implementation (MOSPI), Indian economy is estimated to grow at 5 percent in 2012-13 as compared to the growth rate of 6.2 percent in 2011-12. These GDP figures are based at factor cost at constant (2004-05) prices for the year 2012-13. As per the given data Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2012-13 is likely to attain a level of US$ 1013.63 billion,as against the GDP estimates for the year 2011-12 of US$ 966.56 billion.
The sectors which registered growth rate of over 5 percent are construction, trade, hotels, transport and communication, financing, insurance, real estate and business services, and community, social and personal services. There may be slow growth in the sectors of agriculture, forestry and fishing (1.8 per cent), manufacturing (1.9 per cent) and electricity, gas & water supply (4.9 per cent). The growth in the mining and quarrying sector is estimated to be (0.4 per cent)
According to the Department of Agriculture and Cooperation (DAC), the agriculture, forestry and fishing sector is likely to show a growth of 1.8 per cent in its GDP during 2012-13, as against the previous year's growth rate of 3.6 per cent.Production of foodgrains is expected to decline by 2.8 per cent as compared to growth of 5.2 per cent in the previous agriculture year. The production of cotton and sugarcane is also expected to decline by 4.0 per cent and 6.5 per cent, respectively, in 2012-13. Among the horticultural crops, production of fruits and vegetables is expected to increase by 3.5 per cent during the year 2012-13 as against 5.1 percent in the previous year.
The manufacturing sector is likely to show a growth of 1.9 per cent in GDP during 2012-13. According to the latest estimates available on the Index of Industrial Production (IIP), the index of manufacturing and electricity registered growth rates of 1.0 per cent and 4.4 per cent, respectively during April-November, 2012-13, as compared to the growth rates of 4.2 per cent and 9.5 per cent in these sectors during April-November, 2011-12. The mining sector is likely to show a growth of 0.4 per cent in 2012-13 as against negative growth of 0.6 per cent during 2011-12. The construction sector is likely to show a growth rate of 5.9 per cent during 2012-13 as against growth of 5.6 per cent in the previous year. The key indicators of construction sector, namely, cement production and steel consumption have registered growth rates of 6.1 per cent and 3.9 per cent, respectively during April-December, 2012-13.
The estimated growth in GDP for the trade, hotels, transport and communication sectors during 2012-13 is placed at 5.2 per cent as against growth of 7.0 percent in the previous year. This is mainly on account of decline of 3.4 per cent and 4.8 per cent respectively in passengers and cargo handled in civil aviation and decline of 3.1 per cent in cargo handled at major sea ports during April-November, 2012-13. There has been an increase of 4.3 per cent in stock of telephone connections as on November 2012. The sales of commercial vehicles witnessed an increase of 0.74 per cent per cent in April-December 2012. The sector,financing, insurance, real estate and business services, is expected to show a growth rate of 8.6 per cent during 2012-13, on account of 11.1 per cent growth in aggregate deposits and 15.2 per cent growth in bank credit as on December 2012 (against the respective growth rates of 17.2 per cent and 16.0 per cent in the corresponding period of previous year). The growth rate of community, social and personal services during 2012-13 is estimated to be 6.8 per cent.