Insights of Indian Economy before hit by COVID-19
| Parameters | Value | Remarks |
| Area | 3,287,263 sq km | Area of india within 15200 km of land frontier and 7516 km of coastline. |
| Population-2018 | 135.26 Crores (BPL-21.9%, approx 29 crores) | India’s population is approx 138 crore in June 2020 which is approx 17.7% of total world population. Median age in India is 28.4, population growth rate is approx 1%. Population densitry is 464 people per KMS |
| GDP -2018 | 2.72 Trillion $ (approx. Rs. 210 Lakh Crore)-Nominal | Monetary value of all finished goods and services made within a country during a specified period, is called GDP at nominal value. |
| 9.059 Trillion $ (Approx. Rs. 690 Lakh Crore)-PPP | Nominal GDP adjusted with cost of living and infalation is called at GDP at PPP. | |
| Estimated GDP-2020 | $3.202 trillion (nominal; 2020 est) | |
| $11.321 trillion (PPP; 2020 est) | ||
| GDP Rank | 5th in Nominal -2019 | In nominal GDP ranking India is ranked 5th after USA, China, Japan and Germany. |
| 3rd in GDP at PPP-2020 | In GDP at PPP ranking, India is ranked third after China and USA. | |
| GDP per Capita | $2,338 (nominal; 2020 est.) $9,027 (PPP; 2020 est.) | GDP per capital is GDP divided by population. |
| GDP Per Capital Rank | 139th (nominal- 2019) | |
| 118th (PPP-2019) | ||
| Balance of Trade (goods + services) 2018-19 | 103.63 Billion $ | Balance of trade (BOT) is the difference between the value of a country’s imports and exports for a given period and is the largest component of a country’s balance of payments (BOP). |
| Forex reserves-March-2019 | 412.9 Billion $ | |
| Inflation-CPI | 3.3% (2020 estimated) | CPI= Consumer Price Index |
| Yearly Revenue (centre+state) | Rs. 39.29 Lakh Crores | |
| Yearly Exp. (centre+state) | Rs. 52.03 Lakh Crores | |
| Yearly Revenue-CFI | Rs. 22 lakh crore (2019-20 budget estimates) | CFI= Consolidated Fund of India |
| Yearly Expenditure-CFI | Rs. 27 Lakh crore (2019-20 budget estimates) | |
| Revenue Deficit | 2.3% of GDP -2019-20 estimates | Revenue Deficit is the excess of revenue expenditure to revenue receipts. It is only related to revenue expenditure and revenue receipts. |
| Fiscal Deficit 2019-20 | 3.80% | Fiscal Deficit is the excess of total expenditure to total receipts. It is the indication of total borrowing needed by the Government. |
| Currency in Circulation | Rs. 21.1 Lakh Crore (FY 19)-approx. 10% of GDP | Total hard currency in India. All currency notes in India are issued only by RBI except one rupee note which is issued by finance ministry and all coins in India are minted by GOI and circulated by RBI. |
| GDP Growth Rate-2019 | 6.1% (2018) 4.2% (2019) 1.9% (2020e) 7.4% (2021e) | |
| GNI | Rs. 10.39 Lakh Cr (2018) | Gross National Income (previously known as Gross national product) is the total of all the income/money earned by nation’s all people and businesses whether in India or outside. GNI= GDP + income form overseas sources. GNI is considered as better indicator for measuring wealth of a country. |
| Per capita NNI | Rs. 135000 per year or Rs. 11254/- per month (2020) | Net national income per capita means net national income divided by population. NNI= GNI less depreciation. It is considered as better indicator for social well being in a country. |
| Labour Force of India | 49.4 crore (45.4% employement rate-2018) | |
| agricuture-44%, industry-25%, services-31% | ||
| Ease of doing business rank | 63rd (2020) | |
| Exports (2018-19) | $330 Billion:- Manufacturers-70%, agri-12.8, fuel & mining-13.8%, others-2.9% | |
| Imports (2018-19) | $514 Billion:- Manufactures-51.7%, agri-8.1, fuel & mining-30%, others-10.2% | |
| Gross External Debt | $543 Billion | |
| Public Debt (Internal +external) | $2.1 Trillion (approx 70% of GDP 2019)-approx Rs. 150 lakh crore |
Gross Domestic Product(GDP)
Gross Domestic product is the monetary value of all the goods and services produced within a country during a specified time period. GDP is an important tool to compare the economy of two different countries. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.GDP can be calculated in three ways, using expenditures, production, or incomes. It can be adjusted for inflation and population to provide deeper insights.
Each country reports its data in its own currency. To compare the data, each country’s statistics must be converted into a common currency. The two most common methods to convert GDP into a common currency are nominal and purchasing power parity (PPP)
Nominal GDP: GDP evaluated at current market prices
GDP at PPP(Purchasing Power Parity): GDP adjusted by cost of living of the country.
In nominal GDP ranking, India is ranked at 5th place after USA, China, Japan and Germany. History of nominal GDP of these countries since 1960 is displayed by the chart given below:-
In our opinion GDP at PPP is more comparable than GDP at nominal value. Because GDP at PPP is already adjusted with cost of living inflation of that country. Some countries might have high GDP but a high cost of living too. In GDP at PPP ranking, India is ranked 3rd after China and USA. Historic chart of GDP at PPP since 1990 is given below:-
But some countries may have bigger population for bigger GDP. Hence GDP at PPP is not enough for better comparison. We need to compare GDP (PPP) per capita which is arrived at by dividing the GDP (at PPP) by the population. In GDP (at PPP) per capita rankng, India is ranked 118th (2019 data). Historic chart of GDP per capita at PPP since 1990 is given below:-