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Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

According to the IMF, the Indian economy grew by an estimated 9.5% in 2021, mainly driven by strong exports and domestic private investment. The measures put in place by the government to contain the virus have aggravated pre-existing issues throughout the country. Private consumption is likely to recover slowly due to a weak outlook, as an increase in unemployment brought by the pandemic sent millions of migrant workers back to rural areas, as jobs in cities were lost. Still, according to the IMF, the economy is expected to continue a steady growth in the coming years, registering an estimated GDP growth of 8.5% in 2022 and 6.6% in 2023.

India’s broad range of fiscal stimuli and health responses to the pandemic have proven their effectiveness in 2021, as they supported the country's continuing recovery and helped to mitigate the long lasting impacts of the COVID-19 crisis. The country’s general government deficit stood at -9.4% by the end of 2021, and should decrease slightly in 2022 and 2023, reaching -9.2% and -8.6%, respectively. According to the IMF, the inflation decreased to 5.6% in 2021, and is expected to decrease to 4.9% in 2022 and 4.3% in 2023. The level of public debt remains high - it was estimated at 90.6% in 2021 - but is expected to decrease in the next two years, to 88.8% in 2022 and 88.1% in 2023. The government is focused on reducing inequality, as it seeks to implement growth oriented reforms to get the economy back on track, such as MSME incentives, infrastructure sector boost, agriculture infrastructure, micro food enterprises, increased public employment outlay, and special liquidity window. According to the government, the MSME sector is crucial for the inclusive growth of the economy and, as such, it's become a major priority, with various programmes for the development and promotion of MSMEs being put in place across the country.

India is expected to overtake China as the world’s most populous country by 2024. It has the world’s largest youth population, nevertheless, according to the OECD, over 30% of India's youth are NEETs (not in employment, education or training). India continues to suffer from a low GDP per capita (USD 2,098), and almost 25% of the population still lives below the poverty line (about one-third of the world’s population living on under USD 1.90/day lives in India) and the country's inequalities are very strong: the richest 1% of the population own 53% of the country’s wealth. Additionally, the informal sector, where the vast majority of India’s labour force is employed, has been particularly affected by the COVID-19 pandemic, increasing their risk of slipping back into poverty. According to the CMIE, India's unemployment rate stood at 7.7% of total labour force in 2021.

 
Main Indicators 20202021 (e)2022 (e)2023 (e)2024 (e)
GDP (billions USD) 2.003.003.003.004.00
GDP (Constant Prices, Annual % Change) -6.68.76.86.16.8
GDP per Capita (USD) 1e2222
General Government Balance (in % of GDP) -8.7-8.3-8.5-8.3-8.2
General Government Gross Debt (in % of GDP) 89.284.283.483.884.1
Inflation Rate (%) 6.25.56.95.14.4
Current Account (billions USD) 24.01-38.69-120.57-112.45-110.04
Current Account (in % of GDP) 0.9-1.2-3.5-2.9-2.6

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Indian Rupee (INR) - Average Annual Exchange Rate For 1 GHS 16.8414.9714.9113.6313.34

Source: World Bank, 2015

 

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Latest Update: November 2022