{"id":384,"date":"2013-11-26T07:55:44","date_gmt":"2013-11-26T07:55:44","guid":{"rendered":"http:\/\/www.asadkarim.co.uk\/?p=384"},"modified":"2013-11-26T09:52:02","modified_gmt":"2013-11-26T09:52:02","slug":"the-fundamentals-of-the-indian-economy","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=384","title":{"rendered":"The Fundamentals of the Indian Economy"},"content":{"rendered":"

China is sometimes known as the Dragon, and India is known as the Elephant. The I<\/strong> in BRI<\/strong>CS is India.<\/p>\n

Today \u00a31<\/strong> buys you 101 Indian Rupees<\/strong>. It was only a few years ago (less than 24 months ago), when \u00a31<\/strong> bought you\u00a080 Rupees<\/strong>. The decline in the Rupee by over\u00a020%<\/strong> has been a major concern to the Indian economy as now foreign imports such as oil have become very expensive to the Indian market place.<\/p>\n

The Indian Central Bank, known as The Reserve Bank of India [http:\/\/www.rbi.org.in\/home.aspx<\/a>] has appointed the former IMF man, Dr. Raghuram Rajan as governor.<\/p>\n

His book “Fault Lines” is an excellent read.<\/p>\n

[http:\/\/www.amazon.co.uk\/Fault-Lines-Fractures-Threaten-Economy\/dp\/0691152632\/ref=sr_1_1?s=books&ie=UTF8&qid=1384099854&sr=1-1<\/a>]<\/p>\n

Today India has a population of 1.2 Billion, (1,200 Million<\/strong>). 65%<\/strong> of which are under 35<\/strong>, that equates to 780 Million people. This is a massive potential consumer base. Also in 2012 with Europe in recession, the Indian economy grew at 3.2%.<\/p>\n

The average age of an Indian today is 26.
\n33 million land lines (fixed)
\n894 million mobile phones.<\/p>\n

The economy is \u00a31.2 trillion<\/strong> (\u00a31200 Billion<\/strong>) = US$2 Trillion<\/strong>.
\nOnly 2.5% of the population pays income tax<\/strong>.
\nManufacturing only accounts for 14% of the economy.
\nIt runs a trade deficit of 17% of GDP (massive imports and humble exports)
\n50% of the population work in agriculture (thus explaining why India has great food)
\nThe service sector accounts of 50% of India’s economy, e.g. outsourcing and this employs over 25% of the workforce.<\/p>\n

India has a middle class of over 200 million<\/strong>, who have disposable income and demand luxury items such as upmarket cars to branded clothes.
\nA comparison is made to the Chinese consumer. Today the average India consumer drinks 1% the amount of wine that a Chinese person consumes, another benchmark is the consumption of snacks, today an Indian consumer eats only 15% of what a Chinese consumer eats in snacks.<\/p>\n

Thus the upside is massive. To see this in action, some Indian companies have a global brand and reputation:<\/p>\n

Tata (who own Jaguar Land Rover, and Corus Steel, the old British Steel), Quinnox, Tech Mahindra, ICICI Bank, HDFC, Bajaj Auto, Vedenta Resources, Bharti Airtel, State Bank of India (largest number of bank branches in the world) Zee TV, Infosys, HCL Technologies, ArcelorMittal (the world\u2019s largest steel maker), Godrej Group, Dr Reddy’s Laboratories of Hyderabad, Reliance Industries, Wipro,\u00a0 and Bank of Baroda.<\/p>\n

The Indian economy has massive potential.<\/p>\n","protected":false},"excerpt":{"rendered":"

China is sometimes known as the Dragon, and India is known as the Elephant. The I in BRICS is India. Today \u00a31 buys you 101 Indian Rupees. It was only a few years ago (less than 24 months ago), when \u00a31 bought you\u00a080 Rupees. The decline in the Rupee by over\u00a020% has been a major […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-384","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=384"}],"version-history":[{"count":6,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/384\/revisions"}],"predecessor-version":[{"id":390,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/384\/revisions\/390"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}