Part 393

Economy - overview: India's economy is a mixture of traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. A large share of the population, perhaps as much as 40%, remains too poor to afford an adequate diet. The policy in the 1980s of fueling economic growth through high government expenditure proved unsustainable, however, and in the wake of an international payments crisis in 1991 India has been transforming its semi-socialist, insular economy into a more open, market-oriented economy. Production, trade, and investment reforms since 1991 have provided new opportunities for Indian businesspersons and an estimated 200 million plus middle class consumers. New Delhi has stimulated exports, attracted foreign investment, and revived confidence in India's economic prospects. GDP growth exceeded 6% in 1995 and in 1996. Most of the country's external fundamentals - including the current account balance and reserves (now about $19 billion) - are healthy. Even so, the Indian Government needs to restore the early momentum of reform, especially by continuing reductions in the extensive remaining government regulations. The government will also have to deal with rising government expenditures and higher debt servicing which could create a debt trap by the turn of the century. Even if a series of weak coalition governments come to power in the next few years and are unable to push reforms aggressively, parts of the economy that have already benefited from deregulation will continue to grow. Moreover, the country can build on other strengths, including its diverse industrial base, large scientific and technical pool, its well-developed legal system, and its large middle class.

GDP: purchasing power parity - $1.538 trillion (1996 est.)

GDP - real growth rate: 6.5% (1996 est.)

GDP - per capita: purchasing power parity - $1,600 (1996 est.)

GDP - composition by sector: agriculture: 30% industry : 28% services: 42% (1993/94)

Inflation rate - consumer price index: 10.3% (1995)

Labor force: total: 370 million (1995 est.) by occupation: agriculture 65% or more, services 4%, manufacturing and construction 3%, communications and transport 3%

Unemployment rate: NA%

Budget: revenues: $34 billion expenditures: $52.3 billion, including capital expenditures of $NA (FY95/96)

Industries: textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery

Industrial production growth rate: 11.2% (1996)

Electricity - capacity: 83.288 million kW 1996)

Electricity - production: 380 billion kWh (1995)

Electricity - consumption per capita: 419 kWh (1995)

Agriculture - products: rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish catch of about 3 million metric tons ranks India among the world's top 10 fishing nations

Exports: total value : $30.5 billion (f.o.b., 1995) commodities: clothing, gems and jewelry, engineering goods, chemicals, leather manufactures, cotton yarn, and fabric partners: US, Japan, Germany, UK, Hong Kong

Imports: total value: $34.5 billion (c.i.f., 1995) commodities: crude oil and petroleum products, machinery, gems, fertilizer, chemicals partners: US, Germany, Saudi Arabia, UK, Belgium, Japan

Debt - external: $97.9 billion (March 1995)

Economic aid: recipient: ODA, $1.237 billion (1993); US ODA bilateral commitments $171 million; US Ex-Im bilateral commitments $680 million; Western (non-US) countries, ODA bilateral commitments $2.48 billion; OPEC bilateral aid $200 million; World Bank (IBRD) multilateral commitments $2.8 billion; Asian Development Bank (AsDB) multilateral commitments $760 million; International Finance Corporation (IFC) multilateral commitments $200 million; other multilateral commitments $554 million (1995-96)

Currency: 1 Indian rupee (Re) = 100 paise

Exchange rates: Indian rupees (Rs) per US$1 - 35.872 (January 1997), 35.433 (1996), 32.427 (1995), 31.374 (1994), 30.493 (1993), 25.918 (1992)

Fiscal year: 1 April - 31 March

@India:Communications

Telephones: 9.8 million (1995)

Telephone system: probably the least adequate telephone system of any of the industrializing countries; three of every four villages have no telephone service; only 5% of India's villages have long-distance service; poor telephone service significantly impedes commercial and industrial growth and penalizes India in global markets; slow improvement is taking place with the recent admission of private and private-public investors, but demand for communication services is also growing rapidly domestic : local service is provided mostly by open wire and obsolete electromechanical and manual switchboard systems; within the last 10 years a substantial amount of digital switch gear has been introduced for local service; long-distance traffic is carried mostly by open wire, coaxial cable, and low-capacity microwave radio relay; since 1985, however, significant trunk capacity has been added in the form of fiber-optic cable and a domestic satellite system with over 100 earth stations international : satellite earth stations - 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean Region); submarine cables to Malaysia and UAE

Radio broadcast stations: AM 96, FM 4, shortwave 0

Radios: 70 million (1992 est.)

Television broadcast stations: 274 (government controlled)