India is a country in South Asia. It is the second largest populous country after China and the seventh largest country as per landmass area. India shares border with Pakistan, China, Myanmar, Bhutan, Bangladesh, Nepal.
Facts on India
India’s economy is the 6th largest on nominal GDP and third largest by PPP. In 2020, India’s GDP was evaluated at USD 452 Billion. On per capita basis, India stands at 142 by nominal GDP and 124 by PPP GDP. During the period 1947-91, India’s economy was controlled by extensive state intervention and state regulation which was normally described as the period of License Raj. The end of Cold War and the problem of Payment Crisis in 1991 led to broad economic liberalisation of Indian Economy. Since the start of 21st Century, India had annual GDP growth of about 6-7% and between the period 2014-18, India was the fastest growing Economy of the world. The main industries of India have are in sectors of textiles, chemicals, agriculture production, gems & jewelry, leather, steel, cement, metal, machinery, it processed food, pharmaceutical, automotive, telecommunications, real estate etc.
The main export partners of India are US (16%), EU (14%), UAE (9%), China (5%), Hong Kong (3%).
Major import partners are China (14%), EU (9%), US (7%), UAE (6%) and Saudi Arabia (5%).
The long term growth perspective of India is positive due to young population, low dependency ratio, healthy saving, large investment and integration to global economy. India’s GDP is driven by domestic private consumption, spending by State, investment and exports.
Where India stands in the world.
With 500 million workers, Indian labour force is the second largest as of 2019. India has the highest number of billionaires of the world. India has Free Trade Agreements with ASEAN, SAFTA, MERCOSUR, South Korea, Japan. The service sector contributes 55% to the GDP and is the fastest growing sector while the industrial and agricultural sector employs large workforce. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are some of the world’s largest stock exchanges by market capitalisation. India has the 4th largest foreign exchange reserves and is the world’s 8th largest manufacturer.
India is the world’s largest manufacturer of Generic Drugs and its pharmaceutical sector fulfils 60% global demand of vaccines. The IT industry in 2019 was of 191 billion USD. The Chemical Industry of India is highly diversified and evaluated at 171 Billion USD. The tourism sector contributes about 9% to the GDP. India ranks second in production of agricultural products. The textile industry is evaluated at 100 billion USD, the telecom sector is the second largest in the world by number of smart phones and Internet users. India is the third largest producer of Cement and has the fourth largest auto industry of the world. India’s retail market is valued at 1.17 Trillion USD and India has one of the fastest e-Commerce markets of the world. India has the third largest electricity production and Steel plates. It is the largest producer of milk, jute and pulses in the world. It is the 2nd largest producer of rice, wheat, sugarcane, groundnut, fruits, vegetables and silk. It has the second largest arable land in the world after US. India is the hub for processing of large diamond, pearls and other precious stones. India has the second largest road network, fourth largest rail network in the world. It has the largest oil refinery of the world at Jamnagar.
India has the 4th largest Unicorn bases in the world, about 21 Unicorns valued at USD 73 Billion. By 2025, India will have 100 Unicorns.
India will be one among of the three economies of the world in next 10-15 years. OECD has projected a growth rate of 11-12% for Indian economy for the YR2021. India will become the third largest consumer economy by 2025 due to shift in consumer behaviour and expenditure pattern. Recently, Indian Govt announced Production Linked Incentive (PLI) scheme which provided USD27 Billion for next 5 years to boost production. Due to favourable policies and incentives, contribution of renewable energy to whole energy basket will increase from 30% to 40% by 2030.India has relaxed FDI in areas of defence, power and telecommunications. Most investments are allowed under automatic route. Except a small number of sectors, every sector of the economy has been opened for investment. With support structures in place, India has become an attractive destination for foreign investment. Inspite of Covid crisis, India received more than 70 Billion USD in investment in YR 2020. Most of the investment has been received into construction, IT, health care, e- commerce. To attract Investment, Indian government has announced billion dollar schemes like Make in India, Start Up India, Digital India, House for All, Electricity and Water to all, Smart Cities project etc. which will create millions opportunities for investors to invest in India. With formation of a National Investment Grid, the process of approving FDI and identifying projects for investment has become easier. Last year, Government of India announced Atmanirbhar Bharat with the underline to develop supply chain in all products in India with foreign collaboration with the idea to share knowledge and technology with India’s partners. About 5 Industrial Corridors have been set up in India which will create large industrial base apart from logistics hubs, knowledge hubs, special economic zones etc. India has risen in the ease of doing business ranking and Global Innovation Index. India stands one in Intellectual Property Rights (IPR) in Central and South Asia.
India & Vietnam
India and Vietnam enjoy friendly and cordial relation. The relationship goes back to historical time. In 2016, the relationship was elevated to Comprehensive Strategic Partnership. Both countries have strong cooperation in different fields bilaterally and also under ASEAN ambit. The bilateral trade was about 10.04 Billion USD in 20-21. Leaders of both countries have announced the target of 15 billion USD at the earliest. About 290 Indian companies have invested with cumulative investment of about 1.9 Billion USD and India has also received Vietnamese investment of about 28 Million USD. There is large scope for Vietnamese companies to invest in about 25 sectors including agriculture, food processing, leather, textile, construction, IT, Pharmaceutical, automotive, tourism, etc. My office will be happy to extend all assistance in this regard.
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Source: Consulate General of India, Ho Chi Minh City