India key economic indicators upsc 2024-25

India key Economic indicators UPSC

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Gross Domestic Product(GDP)

Nominal GDP - $3.732 Billion (5th  behind US, china, Germany & Japan)

Purchasing power parity GDP - $13.119 Billion (3^rd behind US & China)

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INTERNATIONAL TRADE

Trade data 2021-22, 2022-23 & 2023-24

		2021-22 (USD Billion)	2022-23 (USD Billion)	2023-24 (USD Billion)Estimate
Merchandise	Exports	422.00	451.46	437
	Imports	613.05	715.9	677.24
	Trade Balance	-191.05	-266.78	240
Services*	Exports	254.53	322.72	339
	Imports	147.01	177.94	177.5
	Net of Services	107.52	144.78	162
Overall Trade (Merchandise+ Services)*	Exports	676.53	770.18	776.68
	Imports	760.06	892.18	854.80
	Trade Balance	-83.53	-122.00	78.12

 

Balance of payments = Trade balance + Balance in capital account + Balance in financial account

Trade balance - The current account is used to mark the inflow and outflow of goods and services into a country.

Balance in capital account – It includes all international capital transfers such as remittances or proceeds of asset sales by migrants leaving or entering a country, the transfer of ownership on fixed assets.

Financial account - International monetary flows related to investment in business, real estate, bonds, and stocks are documented. Also included are government-owned assets, such as foreign reserves, gold, special drawing rights (SDRs) held with the International Monetary Fund (IMF), private assets held abroad, and direct foreign investment. Assets owned by foreigners, private and official, are also recorded in the financial account.

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Forex reserves - The country’s Forex reserves, which stood at $606.47 billion on 1 April 2022, the beginning of the fiscal 2022-23, slumped to $578.44 billion on March 31, 2023, posting a decline of $28.03 billion during the year.

In the week ended 5^th , April 2024, country’s Forex reserves stood at US$648.095 billion.

In the week ended 27^th , September 2024, country’s Forex reserves stood at US$704.895 billion.(on valuation gains and the central bank's dollar purchases.)

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Final impact of Balance of payments is reflected in Foreign exchange reserves (FOREX) of a country.

Remittances to the country by non-resident Indians rose 26% on year to about $112.5 billion in FY23, underscoring the surge in demand for Indian professionals globally after the pandemic. Remittances to India were $89.1 billion in FY22.

Foreign direct investment (FDI) into India declined by 22 per cent to USD 46 billion in 2022-23. India is placed outside top 10 of global top 10 FDI recipient list led by china & US.  This is also an indicator of the journey India's reforms have to cover. currently, India's ease of doing index stands at a lowly 63 in 2022 world bank report.

 

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India key economic indicators