After growing at an average annual rate of just over 6 per cent from 1980 to 2010, India’s economy is now the 10th biggest in the world in terms of gross domestic product, according to the World Bank.
However, its growth has slowed in recent years, with an expansion of 4.7 per cent in 2013-2014, up from 4.5 per cent the previous year, the slowest pace in the previous decade.
India’s growth has been largely driven by the services sector which comprises over half of the economy, while the agricultural, manufacturing, and especially the industrial sectors have slowed down significantly, according to the latest quarterly review by the Indian Ministry of Finance.
India remains the poorest country among the G20, with per capita income at $1,499 compared to China’s $6,807.
China, the United States and the United Arab Emirates are India’s main trading partners, with its most valuable exports being refined petroleum, followed by jewelry, manufactured drugs, and rice.
Due partly to the general economic slowdown and high migration to urban areas, India’s unemployment rate has risen to around 3.8 per cent, according to the International Labour Organisation.
A central issue remains high growth of informal employment, which accounts for 94 per cent of the workforce, the Indian Staffing Federation Vice-President Rituparna Chakraborty, said.