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SAMPLE INDIA'S FACTBOOK

Important facts when conducting business in India.

Gross Domestic

Product

India’s GDP in 2019 approached US$2.8 trillion, overtaking the UK and France (India Today). Annual growth has averaged 7.6% since June 2005, peaking at 13.3% in March 2010, although it has fallen to around 4.5% year on year to September 2019 (CEIC).

The impact of Covid has brought GDP down to around US$2.5/6 trillion (Figure 2), but with a trend line reaching US$4.0 trillion by 2025.

Click here to download our latest white paper on India's GDP.

 

Population Demographics

Total population is 1,374 million which is 18% of the world total (Jan 2020, worldometers.info), 35% of which live in urban areas (483 million). The median age is 28.4, one of the lower age medians. In comparison, German age median is 47.1 years, France 41.4, UK 40.5, USA 38.1, China 37.4, South Korea 41.8 (World Population Review).

An attraction of India for business is the age of the population. Where many developed countries (including China) are facing issues of the aging population, India stands out demographically as a driver of current and future markets, workforce and innovation.

 

Click here to download our latest white paper on India's population demographics.

 

Country Structure

India is the world’s biggest democracy, organised as a democratic republic of 28 states and 8 union territories.

Union Territories are areas where control is direct from the Central Government, although in practice the Union territories have a similar Government structure to the states. Union territories tend to have a small population (with the exception of the Delhi National Capital Territory and Jammu & Kashmir).

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Political Systems & Main Parties

The Central Government structure is fairly typical of a democratic system, although it begins to get a little more complicated at state level. There are also a number of Indian terms used, which can be confusing. Hence a guide is included below. A full illustration of India's political system and Government structure, including past election results is included in the white paper.

 

Lok Sabha  - Lower house of Parliament, elected by the people in a first past the post electoral system.

Rajya Sabha - Upper house of Parliament (the Council of States)

Vidhan Sabha - The State Legislative Assembly, similar in many ways to the Lok Sabha

Vidhan Parishad - The State Legislative Council, or the upper house of the state, mirroring the national Rajya Sabha.

Source: Elections.In

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

30 Years of Industrial Growth

India has emerged as one of the fastest growing major economies of the world, with the economic crisis of 1966, 1981 and 1991 seeming a distant memory. A founding member of the International Monetary Fund (IMF) in 1944, by 2015, in a speech by Christine Lagarde (Managing Director of the IMF) in New Delhi on the subject “seizing the moment” stated “India’s growth rate is expected to exceed that of China, and by 2030” going on to say “The conditions are ripe for India to reap the demographic dividend and become a key engine for global growth”.

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Religions

India is a kaleidoscope of faiths, which includes a number of mainstream religions and many tribal indigenous religions. By percentage of population, in the last available census information (2011) published by the Indian Government, the religions stated by the total population are 79.8% Hindu; Muslim 14.2%; Christian 2.3%; Sikh 1.7%; Jain 0.4%; others 0.7%; not stated 0.9%.

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Economic 

Headlines

  • GDP in 2019 approached US$2.8 trillion, overtaking the UK and France (India Today). Annual growth has averaged 7.6% since June 2005, peaking at 13.3% in March 2010, although it has fallen to around 4.5% year on year to September 2019 (CEIC).

  • February 2021: Interest rates – Repo rate (central bank lending to another bank rate) 4%

  • 2020-21 (Jan 2021): Inflation rate reduced to – 4.06% in Jan 2021, as a result of the pandemic. More usual rates (5 years) are in the region of 5% to 7% (low of 2% 2018, high of 7.8% 2020)

  • Trade Deficit and current account – current account deficit - Q1 2019-20 US$14.3 billion (2% of GDP), down from US$15.8 billion in Q1 2018-19.

  • Government debt for the period of 2018-19 stood at 68.3% of GDP (compares to UK at 88%, Germany 64%, USA 108%, China 47.6%).

Source: rbi.org.in.

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Climate & Environment

Climate

Due to its size and location, India experiences a variety of climates from tropical in the South to temperate and alpine in the Himalayan north where sustained snowfall is seen in higher ground during the winters. The Himalayas are a barrier to the katabatic cold winds from Central Asia.

Air Quality

India is suffering from poor air quality in many regions. The causes are varied, some due to location and winds carrying dust and other pollutants from the east, temperature and air pressure at certain times of year making normal pollution dispersion difficult

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Education System

India has over 1.5 million schools, 8.7 million primary & secondary teachers and 260 million enrollments (www.britishcouncil.org).

Education spending has increased rapidly in recent years from around US$14.5 billion in 2004-5 to US$82 billion by 2015-16. School is free and compulsory for all children aged 6 to 14, although the draft New Education Policy (in review 2019) recommends government provision for “free and compulsory education for all children and adolescents between the ages of 2 and 18” (britishcouncil.com).

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Consumer Spending & Growth

Consumer spending is the driver of the domestic economy, and continues to experience steady growth, until the Pandemic. Reliable data beyond October 2020 was not available at the time of writing.

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Ease of Doing Business

  • Huge steps have been taken by the Indian Government over the last few years to reduce bureaucracy for businesses of all kinds, including foreign businesses. Many of the cluster/tech parks have ‘single window’ offices to provide support.

  • World Bank provide a rating on 190 countries on the ease of doing business, which has recognised the efforts being made and seen them translated into real change.

  • India Ease of Doing Business 2019 = 63 out of 190 having jumped 79 places.

  • In 2014, it was ranked 142 out of 189.

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.

 

Basic Required Knowledge

There are a few simple basics that will cause confusion on first approaching India. Includes the terms used for big numbers (and regional differences), currency, time zone, public festivals & holidays, working week and mobile phone services.

 

Full paper available only to The Honeycomb Global Electronics Hub Gold, Silver and Bronze members. Click here to view membership packages.