Reserve Bank of India recently painted quite a gloomy picture for the Indian economy and rating house Moody's too pointed out how corruption and scams are hampering the country's business environment.
According to research firm Dun and Bradstreet, India will become a $5.6 trillion economy by 2020. The firm has also predicted a three-fold jump in the country's gross domestic product, from $1.7 trillion last fiscal, on the back of rapid investment and growing consumer expenditure.
India's GDP is on a roll
India's gross domestic product is reaching new heights every year. India is now the 10th biggest economy in the world.
India's trade is growing steadily
India's imports are increasing more than 25 per cent year on year (since 1960). Even if 2009 saw a small fall-back due to global recession, in 2010 imports were however again growing at 32.2 per cent (August, 2010 year on year growth) and reached over $140 billion (2010).
India's FDI is on the rise
India's foreign direct investment has been increasing significantly since the past five years. There are three major countries that are known to be the biggest foreign direct investors in India. Topping the list of India's foreign direct investment ranking is the small island nation called Mauritius. This country is located very close to India and enjoys very small tax rate. This is the reason why many companies set up their businesses there or invest in the existing organisations. The tax levied is no more than 3 per cent. In the second place is Singapore, which invests funds in almost the same sectors as the United States, though Singaporeans are also interested in the transportation sector. Coming in at third place is the United States, which bring in more than $15 billion into the country.
India is turning into an industrialised economy
India is moving from being an agriculture based economy to an industrialised and service focused economy similar to the US, Europe and other industrialised countries. India is now the world's biggest manufacturer of small cars. India is ranked 12th in the world in terms of nominal factory output. The Indian industrial sector underwent significant changes as a result of the economic reforms of 1991.
India's population keeps on growing
In terms of population, India is the second largest country in the world. By 2025, India will be the biggest country in terms of population. Western markets like the European Union and the United States are set to...