1. Economic & Business Environment
in India
JeevanPrasad Chinthala
AjayPrasad Siripuram

2. Economic Indicators
06-10 avg. 2010 2011 2012
(exp)
GDP (% growth, real) 8.4 8.8 7.5 7.6
Inflation (%, year-end) 8.8 12.0 7.0 5.5
Fiscal Balance (% of GDP) -4.6 -5.1 -5.6 -5.0
Exports (% growth) 18.9 34.1 32.2 16.5
Imports (% growth) 20.3 30.3 26.1 13.3
Current Account (% of GDP) -1.8 -3.0 -3.2 -2.5
External Debt (% of GDP) 16.7 14.6 13.7 12.3
Currency (per USD, year-end) 44.7 44.8 52 ---

3. Foreign Trade and Investment
• In 1945, India became a member of IMF
• Till the early 1990s, the foreign exchange market in
India used to be tightly controlled by the Reserve
Bank of India, the central bank.
• Since then, the foreign exchange system has become
fully convertible on current account and partially
convertible on capital account.
• India has started attracting substantial quantities of
foreign direct investment (FDI) as well as foreign
portfolio investment.
• Indian companies have also started investing abroad
in a big way.

5. Top 5 Export Items – India –
Apr-Sept 2010-11
Category % Age
Petroleum ( Crude & Products 16.9%
Gems & Jewellery 14.9%
Transport Equipment 8.3%
Machinery & Equipments 4.8%
Drugs/Pharma/Fine Chemicals 4.6%
Others 50.5%

6. Major Export Destinations Apr-
Sept 2010-11
Country % Age
UAE 14.0%
USA 11.1%
China 5.2%
Hong Kong 4.4%
Singapore 4.3%
ROW 61.0%

7. Top 4 Import Items – India –
Apr-Sept 2010-11
Category % Age
Petroleum ( Crude & Products 30.1%
Pearls/Semi Precious Stones 7.7%
Gold 7.6%
Machinery Except Electrical &
Electronics 6.7%
Others 47.8%

8. Major Import Countries Apr-
Sept 2010-11
Country % Age
China 12.0%
UAE 7.2%
KSA 6.2%
USA 5.3%
Swiss 5.2%
ROW 64.1%

10. Examples of Sectoral Guidelines
Sector/ Activity FDI Cap/ Equity Sector/ Activity FDI Cap/ Equity
Airports – Greenfield 100% Floriculture, 100%
Airports - Existing 100% Horticulture, etc.
Scheduled Air 40% - FDI, 100% Power (excl. atomic 100%
transport services - NRI energy)
Mining 100% Coal & Lignite 100%
Banking – Pvt. Sector 74% (FDI + FII) Drugs & Pharma 100%
Defence Production 26% NBFCs 100%
Insurance 26% Refining (petroleum 49% - PSUs,
& natural gas) 100% -Pvt.
Wholesale/ Cash and 100% Newspapers 26%
carry trading
Special Economic 100% Telecommunication 74% (incl
Zones Services FDI,FII,NRIs,etc)

13. Thank You