India

The economy of India is a middle-income developing market economy. It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the International Monetary Fund (IMF), on a per capita income basis, India ranked 142nd by GDP (nominal) and 128th by GDP (PPP). From independence in 1947 until 1991, successive governments promoted protectionist economic policies, with extensive state intervention and economic regulation. This is characterized as dirigisme, in the form of the License Raj. The end of the Cold War and an acute balance of payments crisis in 1991 led to the adoption of a broad economic liberalization in India. Since the start of the 21st century, annual average GDP growth has been 6% to 7%, and from 2013 to 2018, India was the world's fastest-growing major economy, surpassing China. Historically, India was the largest economy in the world for most of the two millennia from the 1st until the 19th century.

The long-term growth prospective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings, and investment rates, increasing globalization in India, and integration into the global economy. The economy was slowed in 2017, due to the shocks of "demonetization" in 2016 and the introduction of the Goods and Services Tax in 2017. Nearly 70% of India's GDP is driven by domestic private consumption. The country remains the world's sixth-largest consumer market. Apart from private consumption, India's GDP is also fueled by government spending, investments, and exports. In 2020, the pandemic affected trade and India was the world's 14th-largest importer and the 21st-largest exporter. India has been a member of the World Trade Organization since 1 January 1995. It ranks 63rd on the Ease of doing business index and 68th on the Global Competitiveness Report. Due to extreme rupee/dollar rate fluctuations, India's nominal GDP fluctuates significantly. With 50 crores (500 million) workers, the Indian labor force is the world's second-largest. India has one of the world's highest numbers of billionaires and extreme income inequality. Because of several exemptions, barely 2% of Indians pay income taxes.

During the 2008 global financial crisis, the economy faced a mild slowdown. India undertook stimulus measures (both fiscal and monetary) to boost growth and generate demand. In subsequent years, economic growth revived. According to the World Bank, to achieve sustainable economic development, India must focus on public sector reform, infrastructure, agricultural and rural development, removal of land and labor regulations, financial inclusion, spur private investment and exports, education, and public health.

In 2020, India's ten largest trading partners were the United States, China, United Arab Emirates (UAE), Saudi Arabia, Switzerland, Germany, Hong Kong, Indonesia, South Korea, and Malaysia. In 2019–20, the foreign direct investment (FDI) in India was $74.4 billion. The leading sectors for FDI inflows were the service. computer and telecom industries India has free trade agreements with several nations, including ASEAN, SAFTA, Mercosur, South Korea, Japan, and several others which are in effect or in negotiating stage.

India is the world's largest manufacturer of generic drugs, and its pharmaceutical sector fulfills over 50% of the global demand for vaccines. The Indian IT industry is a major exporter of IT services with $196 billion in revenue and employs over 4.47 million people.[86] India's chemical industry is extremely diversified and estimated at $178 billion. The tourism industry contributes about 9.2% of India's GDP and employs over 4.2 crores (42 million) people. India ranks second globally in food and agricultural production, while agricultural exports were $35.09 billion. The construction and real estate sector ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy. The Indian textiles industry is estimated at $100 billion and contributes 13% of industrial output and 2.3% of India's GDP while directly employing crores 4.5 crores (45 million) people. India's telecommunication industry is the world's second-largest by the number of mobile phones, smartphones, and internet users. It is the world's 24th-largest oil producer and the third-largest oil consumer. The Indian automobile industry is the world's fifth-largest by production.[93][94] India has a retail market worth $1.17 trillion, contributing over 10% of India's GDP. It also has one of the world's fastest-growing e-commerce markets. India has the world's fourth-largest natural resources, with the mining sector contributing 11% of the country's industrial GDP and 2.5% of total GDP is also the world's second-largest coal producer, the second-largest cement producer, the second-largest steel producer, and the third-largest electricity producer

The nine coastal states of Maharashtra, Karnataka, Kerala, Goa, Gujarat, Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal host the majority of seaports in India. Here are ten of the largest container and cargo shipping ports in India today, several of which Containers operate in:

1. Kandla Port

Located 90 kilometers from the Gulf of Kutch, the Kandla Port was built in the 1950s in the Kandla Creek area as the first export processing port in India. It is the biggest container port in India when it comes to the value and amount of cargo that travels through it each year. It’s also known as the most affluent and busiest port, thanks to its high profitability for exporting grain and importing oil. Today, imports include petroleum, heavy machinery, salt, textiles, and chemicals.

2. Mumbai Port

Mumbai Port is India’s largest port by size and shipping traffic. Located in west Mumbai on the western coast of India, the Mumbai Port is situated in a natural harbor. The water reaches depths of 10-12 meters, allowing easy docking and passage for large cargo ships. Handling about 20 percent of India’s foreign trade, Mumbai Port is critical to the Indian economy and trade operations. It has four jetties that handle numerous imports and exports, including crude and petroleum oil, as well as liquid chemicals, textiles, tobacco, manganese, leather, and heavy machinery.

3. Chennai Port

As the second biggest port in India, Chennai Port (also known as the Madras port) handles over 100 million metric tons of cargo per year. It began operations in 1881 as the third established port in India. Chennai Port is located on the Coromandel Coast in the Bay of Bengal. It serves as Tamilnadu’s main port and a large contributor to the local economy. In addition to its bustling cargo and container shipping activity, Chennai Port attracts a large number of tourists each year because of its surrounding lighthouses.

4. Port Blair Port

One of the youngest major ports in India, Port Blair was declared an official shipping and cargo port by the Indian government due to its significant contributions to the economy. It sits inside a natural harbor with a depth of twelve to thirteen meters. It can accommodate cargo ships up to 500 feet in length. Named after the capital city of Andaman, in the Nicobar Islands, Port Blair serves as a connection point between the Bay of Bengal and the Andaman Sea.

5. Kolkata Port

Known as the “Gateway of Eastern India,” the Kolkata Port manages cargo that arrives from Australia and Southeast Asia. It utilizes two dock systems, Haldia docks, and Kolkata docks. It is the busiest port for the trade of jute, and a major exporter of steel, iron ore, copper, leather, tea, and coal. Imports include heavy machinery, paper, fertilizers, chemical products, and crude oil. It’s a natural river port and can easily accommodate ships up to 500 feet in length.

6. Tuticorin Port

Tuticorin Port is an all-weather port that attracts large volumes of global shipping traffic. Located inside an artificial harbor, it has an anchorage depth of 10 meters. Tuticorin was once known as the main port for maritime trade and pearl fishing. Main imports and exports include salt, grain, cooking oil, petroleum, and coal.

7. Cochin Port

Cochin Port is one of the fastest-growing ports in India and the Arabian Sea. Nestled between the islands of Willingdon and Vallarpadam, it moves 11 million metric tons of imported goods alone each year. Imports and exports consist mainly of tea, coffee, spices, fertilizers, and mineral oils. With an anchorage depth of nearly 14 meters and a cargo depth of over nine meters, it can easily accommodate ships of over 500 feet in length.

8. Ennore Port

With both railway and road links to support sea transport, Ennore Port handles large volumes of coal (over 16 million metric tons per year). There are plans in place to expand the port with three more multi-purpose berths and five container berths. The port is privately owned, unlike many Indian ports that are owned by the government. It has an anchorage depth of 16 meters and is a coastal breakwater port with a relatively small harbor. Ennore Port is located 24 kilometers from Chennai Port on the Coromandel Coast.

9. Panambur Port

Panambur Port is located in the coastal city of Mangalore and was inaugurated as a major seaport of India in 1974. It is a deep, all-weather port with 17 berths, and operates all year long. Serving as a trading point for Karnataka and Kerala, it moves many major imports like fertilizer, timber, wood pulp, petroleum, and more. Exports include coffee, iron ore, manganese, and cashew nuts.

10. Vizag Port

Vizag Port (or Visakhapatnam) is the oldest shipyard in India. It is one of the only natural harbors in the Bay of Bengal. It was inaugurated as a major seaport in 1933 and manages 1.2 million metric tons of cargo in its 24 berths each year, including sea trade of iron ore, pellets, coal, aluminum, and oil. Plans are underway for continued modernization of the harbor thanks to continued investment by the Indian government.

Here's a list of the top eight imported products in India:

1. Oil

Import cost - 177.5 billion USD

Like most other countries, India too gets its crude oil from the Middle East, especially Saudi Arabia and Iraq. In the last decade, India's oil import has risen from around 65 million tonnes to almost 180 million tonnes! India is one of the most oil import-dependent countries in the world

2. Precious stones

Import cost - 60 billion dollars

India is a unique country. Why? Because the No. 2 item in both the lists of top imports and exports of India is precious stones, gold in particular. Though the import rate has been reduced by 9 percent recently, India spends more than 60 billion dollars to buy jewels

3. Electronics

Import cost - 32 billion USD

Half of the total import of electronic equipment to India comes from China. This is not news to us. Almost every other electronic device sold in India - big or small - is labeled as 'Made in China. However, the country has progressed extensively in the sector and the import rate is going down. However, there is still a long way to go!

4. Heavy machinery

Import cost - 31 billion dollars

Industrial machines, engines, and pumps are imported mainly from Japan and China. To have rapid industrial growth in India as per the vision of PM Modi, the country needs to be self-sufficient in the field of heavy machines

5. Organic chemicals

Import cost - 18 billion USD

Ancient India was famous for its advancement in organic chemistry and the use of herbal science. However, at present, the country depends on imported bio-chemicals. This also increases the cost of agricultural expenditure and thus affects the price of essential food items

6. Plastics

Import cost - 11.8 billion USD

How often do we come across a billboard or signage saying "Say No To Plastic Items"? Pretty often, right? But then again, the country's sixth most imported item is plastic. Now, every plastic item may not be unnecessary, but the use of the ones that can be stopped should be! This will not save the environment but also strengthen the country's economy.

Here's a list of the top eight exported products in India

1. Petroleum Products

Many semi-products are made of petroleum-like charcoal, coal, coke, and wax. These products have a massive demand in some developing neighboring nations like Bangladesh, Bhutan, Nepal, Myanmar, etc. It's undoubtedly a very lucrative export business, but keep in mind that you need heavy investment for this.

2. Precious Stones and Gems

India has always been known for its jewelry and precious stone exporters. There's no deficiency of markets that import gold, silver, gems, semi-precious stones, etc., and India is one of the top exporters of local handmade jewelry.

If you participate in the same business, you can reap great profit margins. If you plan to export precious stones, you need an in-depth knowledge of these gems, and their quality, because a slight up/down in quality means a lot of difference in the cost.

3. Mineral Fuels

You'll be shocked to know India has 87 sorts of minerals out of which 47 are nonmetals, 10 are metallic minerals, bifurcated as 40 sorts of fuel minerals, and 26 others. Iron ore is the leading mineral in export, and it is undoubtedly a vast market. A huge advantage is the never-ending demand for these minerals.

4. Mechanical Equipment

India is the leading manufacturer of mechanical appliances. Indian manufactured tractor–driven harvesters and self-propelled harvesters are used in numerous countries in South America, Asia, the Middle East, and Africa. Experts even expect further expansion of the demand in the upcoming time.

5. Pharmaceutical Products

In terms of value, the Indian pharmaceutical industry ranks 14th globally, and concerning size, it stands third. In 2019, India supplied 20% of the global generic medicines, expected to grow further in the coming years. The pharmaceutical industry has over 8,100 drug production facilities in India. The top pharmaceutical export products are active ingredients (APIs), finished drugs (FDCs), biopharmaceuticals, and other medical services. India leads the world in pharmaceutical factories as per the U.S. Drug Control Agency outside the U.S.The pharmaceutical and drug products export business is among the most liquid and lucrative export businesses globally, and surprisingly, it's still an easy choice for any small exporter in India.

6. Dairy Products

India reaps great profit by exporting dairy-based products to many countries. Milk from Indicine cattle is highly sought after in Western markets. The cost of products derived from these kinds of milk is easily sold at around four times the price of local dairy products.

Also, some major Indian dairy exports include ghee, cheese, and curd. Dairy products are a very lucrative export proposition. However, it would be best if you kept a sharp eye on quality controls, packaging, and refrigeration because of the shorter shelf life of these products.

7. Leather and Its Products

India is one of the leading leather exporting nations, and several markets worldwide pay very high for leather products. These products include purses, coats, shoes, cricket balls, etc. Many leading luxury brands import leather from India at very low costs.

The U.S and Europe have traditionally been the big markets for Indian leather goods. You can even target some small countries to play the game in the low competition. Even demand for semi-treated leather is high.

8. Textile Products

The textile industry has always served as the trump card for the Indian export monopoly. This industry has direct employment of 45 million, and the Indian government is very generous towards exporters of textile products.

Many countries like the U.K., U.S., UAE, etc., always have a demand for Indian textiles, accounting for around 50% of the entire textile exports from India.

Numerous natural and artificial fibers can be exported from India, and even as a very small exporter, you can get large orders. Many small-scale jute exports have expanded at an incredible rate in recent years. Besides jute, India is a leading exporter of many other fibers. If you ask which textile product is most exported from India, the answer will be cotton.