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Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

According to the IMF, the Indian economy grew by an estimated 6.8% in 2022, mainly driven by the pickup in economic activities in the travel industry, trade, construction, mining, electricity, and manufacturing. One of the fastest-growing economies in the world, India is expected to keep growing in the coming years, with global off-shoring, digitisation, and energy transition setting the scene for unprecedented economic growth in the country. According to the IMF, the economy is expected to register an estimated GDP growth of 6.1% in 2023 and 6.8% in 2024.

Thanks to global trends and key investments made in technology and energy, India is on track to becoming one of the world's top economies. In 2022, the country continued recovering from the impacts of the pandemic, with India’s broad range of fiscal stimuli and health responses proving their effectiveness. By the end of the year, the country’s general government deficit stood at an estimated 8.5%, a rate which should remain relatively stable in 2023 and 2024, at 8.3% and 8.4/%, respectively. According to the IMF, inflation increased to 6.9% in 2022, but it is expected to decrease to 5.1% in 2023 and 4.4% in 2024. The level of public debt remains high - it was estimated at 83.4% in 2022 - and it is expected to remain virtually unchanged in the next two years, at 83.8% in 2023 and 84.1% in 2024. The government is focused on reducing inequality, as it seeks to implement growth oriented reforms to get the economy back on track, such as MSME incentives, infrastructure sector boost, agriculture infrastructure, micro food enterprises, increased public employment outlay, and special liquidity window. According to the government, the MSME sector is crucial for the inclusive growth of the economy and, as such, it's become a major priority, with various programmes for the development and promotion of MSMEs being put in place across the country.

India is expected to overtake China as the world’s most populous country by 2024. It has the world’s largest youth population, nevertheless, according to the OECD, over 30% of India's youth are NEETs (not in employment, education or training). India continues to suffer from a low GDP per capita (USD 2,098), and almost 25% of the population still lives below the poverty line (about one-third of the world’s population living on under USD 1.90/day lives in India) and the country's inequalities are very strong: the richest 1% of the population own 53% of the country’s wealth. Additionally, the informal sector, where the vast majority of India’s labour force is employed, has been particularly affected by the COVID-19 pandemic, increasing their risk of slipping back into poverty. According to the CMIE, India's unemployment rate stood at 8.3% of total labour force in 2022, with rates being higher in urban areas (10%) than in the rural parts of the country (7.4%).

 
Main Indicators 202020212022 (E)2023 (E)2024 (E)
GDP (billions USD) 2,671.603,150.313,386.403,736.884,062.15
GDP (Constant Prices, Annual % Change) -5.89.16.85.96.3
GDP per Capita (USD) 1,9132,2342,3792,6012,803
General Government Balance (in % of GDP) -9.1-8.8-9.6-8.9-8.3
General Government Gross Debt (in % of GDP) 88.584.783.183.283.7
Inflation Rate (%) 6.25.56.74.94.4
Current Account (billions USD) 24.01-38.69-88.43-81.59-89.29
Current Account (in % of GDP) 0.9-1.2-2.6-2.2-2.2

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Indian Rupee (INR) - Average Annual Exchange Rate For 1 GBP 90.7383.8191.2488.6395.73

Source: World Bank, 2015

 

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Latest Update: September 2023

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