The liberties government policies becomes investment friendly and international investors see India as a potential market for excellent return on investment.GDP of India : The Indian economy is the 12th largest in USD exchange rate terms. India is the second fastest growing economy in the world. India’s GDP has touched US$1.25 trillion. The crossing of Indian GDP over a trillion dollar mark in 2007 puts India in the elite group of 12 countries with trillion dollar economy.
Though India has the second highest growth rate in the world, its rank in terms of human development index (which is broadly used has a measure of life expectancy, adult literacy and standard of living) has gone down to 128 among 177 countries in 2007 compared to 126 in 2006.
The automobile industry consisting of cars, trucks, buses, two-wheelers and three-wheelers, is vital to the growth of the Indian economy. In the last decade their share in the Indian economy is around 5% of GDP.
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry,logging and fishing accounted for 18.6% of the GDP in 2005, employed 60% of the total workforce. India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper. It also has the world's largest cattle population (193 million). It is the second largest producer of wheat, rice,sugar, groundnut and inland fish. It is the third largest producer of tobacco. India accounts for 10% of the world fruit production with first rank in the production of banana and sapota.
India is fourteenth in the world in factory output. Manufacturingsector in addition to mining, quarrying, electricity and gastogether account for 27.6% of the GDP and employ 17% of the total workforce.
India is fifteenth in services output. Service industry employs 23% of the work force and is growing quickly, with a growth rate of 7.5% in 1991–2000, up from 4.5% in 1951–80. It has the largest share in the GDP, accounting for 53.8% in 2005 up from 15% in 1950.
The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry.
Overview of the Indian Dairy Sector
The country is the largest milk producer all over the world, around 100 million MT.
Value of output amounted to Rs. 1179 billion (in 2004-05) (Approximately equals combined output of paddy and wheat!!)
1/5thof the world bovine population
Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows)
Sugar consumption rate is highest in India as shown in the statistics received from USDA Foreign Agricultural Service. However, as per production is concerned, India has notched up 2nd position following Brazil, the largest sugar producer in the world.
There are 453 sugar mills in India. Co-operative sector has 252 mills and private sector has 134 mills. Public sector boasts of around 67 mills.
India has a long coastline spanning 7600 kilometres forming one of the biggest peninsulas in the world. It is serviced by 12 government and 1 corporate major ports and 187 notified minor and intermediate ports. The latest addition to major ports is Port Blair on June 2010. With the declaration Port Blair has become the 13th major port in the country.
Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion with the financial & technical aids from Japan, covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai.
Delhi-Mumbai Industrial Corridor is to be conceived as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the 'Global Manufacturing and Trading Hub'. The Government is considering this ambitious project to establish, promote and facilitate Delhi-Mumbai industrial corridor to augment and create social and physical infrastructure on the route which is world class and will help spurring economic growth of the region. Delhi and Tokyo had announced in 2005 two ambitious mega projects to modernize India’s lagging infrastructure. One was dedicated rail freight corridor (DFC) to move goods between Delhi and Mumbai. The other was an develop a Delhi-Mumbai Industrial Corridor (DMIC) all along the new rail line to be built between the two cities with Japanese assistance at a cost of nearly US$90 billion.
India has a large road network of over 3.314 million kilometers of roadways (2.1 million miles), making it the third largest road network in the world. At 0.66 km of highway per square kilometer of land the density of India’s highway network is higher than that of the United States (0.65) and far higher than that of China's (0.16) or Brazil's (0.20). The Indian Government has set ambitious plans for upgrading of the National Highways in a phased manner in the years to come.
The Indian telecommunications industry is the world's fastest growing telecommunications industry, with 706.37 Million telephone (landlines and mobile) subscribers and 670.60 Million mobile phone connections as of Aug2010 It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013.
The Indian healthcare industry is seen to be growing at a rapid pace and is expected to become a US$280 billion industry by 2020 . The Indian healthcare market was estimated at US$35 billion in 2007 and is expected to reach over US$70 billion by 2012 and US$145 billion by 2017. According to the Investment Commission of India the healthcare sector has experienced phenomenal growth of 12 percent per annum in the last 4 years.
India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years.
In India, SEZs are the special zones created by the Government and run by Government-Private or solely Private ownership, to provide special provisions to develop industrial growth in that particular area.
Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
Exemption from Central Sales Tax, Service tax, Incometax & State sales tax and other levies as extended by the respective State Governments.
Single window clearance for Central and State level approvals.
Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.