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Economy
Economy: general information
• Economy worth US$1.848 trillion
• market exchange rates – the 10th
Exchange rates are the price of one country’s’ currency in relation
to another.
Exchange rates are classified by IMF into three broad categories,
reflecting the role of the authorities in the determination of the
exchange rates and/or the multiplicity of exchange rates in a
country:
- market rate: is used to describe exchange rates determined
largely by market forces;
- official rate: is used to describe the exchange rate determined by
authorities;
- for countries maintaining multiple exchange arrangements, the
rates may be labelled principle rate, secondary rate, and tertiary
rate.
Economy: general information
• purchasing power parity – the 3rd
PPP is an economic theory and a technique used
to determine the relative value of currencies,
estimating the amount of adjustment needed on
the exchange rate between countries in order for
the exchange to be equivalent to (or on par with)
each currency's purchasing power.
It asks how much money would be needed to
purchase the same goods and services in two
countries, and uses that to calculate an implicit
foreign exchange rate.
Economy: general information
• annual GDP – 6.1%
• But: 140th in the world in nominal GDP
per capita
Gross Domestic Product is the total value of
all goods and services produced
domestically by a nation during a year.
It is equivalent to gross national product
minus net investment incomes from
foreign nations
GDP per capita: the world in 2007
Economy: general information
• Until 1991 – protectionism
is the economic policy of
restraining trade between states through
methods such as tariffs on imported goods,
restrictive quotas, and a variety of other
government regulations designed to allow
(according to proponents) "fair competition"
between imports and goods and services
produced domestically.
• WTO membership – 1995
Labour force
• 487.6-million worker Indian labour force
– the 2nd
• Minimum wage – US$ 90
Economy Sectors (% of GDP)
Agriculture Industries
Service
Sector
Industrial
Sector
Agricultural
Sector
rice
wheat
oilseed
cotton
jute
tea
sugarcane
Potatoes
textiles
telecommunications
chemicals
pharmaceuticals
biotechnology
food processing
steel
transport equipment
cement
mining
petroleum
machinery
software
Trade
• In 2006, the share of external trade in India's
GDP 24%, up from 6% in 1985.
• In 2008, India's share of world trade was 1.68%;
• In 2011, India was the world's 10th largest
importer and the 19th largest exporter.
• Major exports: petroleum products, textile goods,
jewellery, software, engineering goods,
chemicals, and leather manufactures.
• Major imports: crude oil, machinery, gems,
fertiliser, and chemicals.
• Between 2001 and 2011, the contribution of
petrochemical and engineering goods to total
exports grew from 14% to 42%.
Transportation
• cycle rickshaws
• auto rickshaw
• tempo
Energy
• coal
• hydroelectric
• nuclear
Tourism
• Emerging markets – 12% of
the world T&T Industry GPD
• India – 2 %
• domestic tourism prevailing
• upscale hotel room prevailing
• shortage of supply (150,000 rooms)
• the rise of the middle class will
spur the outbound tourism
• lack of local investors in
international brands
• security issues
IT Industry
• Indian IT Industry - 2.8
million jobs
• revenues almost US$100 billion
• 7.5% of Indian GDP
• 26% of India's export
• 7 out of 15 top outsourcing companies are
located in India
• 2nd outsourcing destination after the US
Emerging industries
• pharmaceutical industry to reach $ 48.5 billion by
2020
• India's R & D - 60% of Biopharmaceutical industry
• India - among the top 12 Biotech destinations
Challenges
•
•
•
•
•
poverty
child undernourishment and malnutrition
economic inequality
corruption
slowed economic growth
Materials available at
www. english-studies. ru
Next class
Lecture: Politics. Government
Presentations:
The greatest political figures of India
Discussion:
Many faces of diplomacy