Capital City: New Delhi
	It is %T:%M %A in New Delhi

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Economic trends

India is continuing to move forward with its market-oriented economic reforms programme that started in 1991. India is the world's 12th largest economy and the 3rd largest in Asia, after China and Japan. The GDP growth rate was 8.0% in 2004, 9.0%, 9.7% and 8.9% in 2005, 2006 and 2007 respectively. Strong domestic demand will lead to a significant widening of the merchandise trade deficit in 2007 & 2008, however current-account deficit will remain less than 3% of GDP because of growing export of services. Inflationary pressures will be difficult to control (estimated at 6.2% in 2007). Public funds are the economy's main difficulty: public debt accounts for 90% of the GDP. Government has launched major investments programs to improve the country’s infrastructure especially roads, ports & airports. Despite good economic results, India remains a poor country with 25% of its population still living below the poverty line.

Main branches of industry

India is the world's fourth agricultural power. Agriculture contributes 20% to the GDP and employs almost two-third of the active population. With the largest livestock in the world, India is one of the world leaders in production of milk, fruits, vegetables, wheat, rice, tea, cotton and sugar. There are considerable mineral deposits in the country. Coal is the country's main energy source (India is the fourth largest world producer of coal). In the manufacturing industry, textile plays a predominant role. Chemical industry is the second largest industrial sector (12% of the GDP). New technologies sector is also expanding. The rapidly growing software sector is boosting service exports and modernizing India's economy. The software export revenues generate in financial year 2005/06 reached USD 17.2 billion. The telecommunication sector is also in full boom.

International trade

India’s share in global trade still remains less than 1%. The main hurdles are inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities, and reservation of key products for small-scale industries. Its top three export partners are: the USA, United Arab Emirates and China. The commodities mainly exported are jewels (nearly 80% of diamonds sold in the world are cut in India), mineral fuels, clothes & fabrics, and organic chemicals. India’s top three import partners are: China, the USA, and Switzerland. It mainly imports mineral fuels & oils, precious stones, electric & mechanical machinery & equipment, computer equipment, and iron & steel.