INDIA vs U.S. - Macroeconomics Aspects

8/9/2019 INDIA vs U.S. - Macroeconomics Aspects

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Subhendusankar Kar

MBA Trimester II

MBA 09109 (2009-2011)

Amrita School of Business, Coimbatore


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Contribution ofContribution of labourlabour force in various sectorsforce in various sectors

Agriculture: 70Agriculture: 70--75%75%

Manufacturing:Manufacturing: 10%10%

Service sector:Service sector: 1515--20%20%

India before independenceIndia before independence


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Major industries before independence are

Jute and textile industry.Other major industries are in the fields of

sugar, cement, paper etc.

The GDP after independence of India is around US$100,850

(1950)

India's share of the world income went from 24.4% in

1700, to a low of 3.8% in 1952.

The most important characteristic of Indias foreign tradethroughout the colonial period was the generation of a large

export surplus.


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Gross Domestic Product

GDP : $ 1.209 trillionGDP GROWTH : 7.9%

(Q2, 2009)

GDP PER CAPITA: $2900

$ 14.261 trillion2.75%

(Q2, 2009)

$43,785 (2008)


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17%

29%54%

Agriculture Industry Services

1%

23%

76%

Agriculture Industry Services

y sect r


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L

abour force

Contribution to Textile industries (employment) : 33.17 million people (INDIA)

Labour force

523.5 million (2008 est.) 154 million (2008 est.)

Labour force by occupationAgriculture : 60% Agriculture : 0.6%

Industry : 12% Industry :24.8%

Services : 28% (2008) Services :16.5%(2008)

managerial and professional : 35.5%Unemployment6.8% (Q3, 2009) 10.2% (2009)


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Export value : $175.7 billion (2008 est.)

Export goods

petroleum products, textile goods,gems and jewelry, engineering goods,

chemicals, leather manufactures

Gems and Jewellery:

$2.11 billion (oct 2009)

Main export partnersUnited States 15%

China 8.7%

UAE 8.7%

Export Value : $1,611 billion (2008 est.)

Export Goods

aircraft, motor vehicles andparts, food, steel products, electric and

electronic equipment, industrial and

power-generating

Main export partnersCanada 21.4%

Mexico, 11.7%

China, 5.6%

EXPORT


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Imports value : $287.5 billion (2008est.)

Import goods

Crude oil, machinery, gems,fertilizer, chemicals

Import Partners :China 10.6%, US 7.8%

Germany 4.4%, Singapore 4.4%

Import value: $2.115 trillion(2008est.)

Import goods

non-auto consumer goods 23.0%fuels 22.1%

production machinery 19.9%

motor vehicles and parts 11.1%;

food, feed and beverages 4.2%;

Import Partners :China 16.9%

Canada, 15.7%, Mexico 10.6%

IMPORTS


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INFLATION

FDI inflow :US $1.2 trillion in 2009

PPI : 1.9 %PPI base year : 1982

FDI inflows : US $0.12 trillion (Sep 2009)

WPI :2.5%WPI base year :2004- 2005

CPI : 19.05 %

FOREX RESERVES : $286.6 billion $ 83.375 billion


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4th largest emitter ofgreen house gases.

Per capita emission 1 ton CO2 a year

Will reduce emission intensity by 20-25%

by 2020 from the 2005 levels

Green companies Tata Group, Essar

Group

EMISSIONS

2nd largest emitter ofgreenhouse gases

Per capita emission 20 ton CO2 a year

Has pledged to reduce emissions by 17%

Green Companies HP, IBM


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A Vision for the 21st Century was issued by then

Prime Minister Vajpayee and President Clinton which

pledged to deepen the Indo-American partnership

through dialogue and engagement.

In July 2005 a new program called the Trade Policy

Forum started between US and India. The goal of the

program is to increase bilateral trade which is a two-way trade deal and the flow of investments.

United States is Indias second largest source of

Foreign Domestic Investment accounting 16 %

investment flows to the Indian economy.

INDOINDO US RELATIONSHIPUS RELATIONSHIP


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India's main exports to US are precious stones, metals (worked

diamonds & gold jewellery), Fish and seafood, Textile, Iron/steel

products, Organic chemicals and Machinery.

India imports sophisticated machinery (computers and

components, telecom, etc), Electrical, Medical and surgical

equipment/instruments, Aircraft.

A very important aspect of US India economic relations comes

with the emergence ofBusiness Process Outsourcing, where in

many US companies are reaping the advantages offered by India's

IT sector.

Regardless of the fact that USA is Indias major trading

partner, India ranks 18th in US imports and 24th in US exports.


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INDIA vs U.S. - Macroeconomics Aspects

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