Indian economy is the third-largest economy in the world by purchasing power parity and the fifth-largest economy globally by nominal GDP (PPP). The GDP of the country was rapidly growing before the virus broke out. Although the viral outbreak caused a setback for the economy, the country's GDP rose by 7.6% in FY 2017–18. Despite this, India's economy grew by 9.5% in 2021 after experiencing a GDP growth rate of -7.3% in 2020. 5.09% was the inflation rate between January and November of 2021. Amongst the countries in the Asian region, India is expected to be the fastest growing Asian economy in 2022-23.
Industrial Sector Overview
The manufacturing sector contributes significantly to the Indian economy, accounting for roughly 27.3 million jobs and 17% of GDP. By 2025, the Indian government wants manufacturing to account for more than 20% of economic production through the implementation of various programmes and policies. With an investment of USD 47.8 billion planned over five years, starting in 2021, the Centre's PLI scheme has increased domestic production and helped manufacturing-driven exports. As part of its efforts to promote foreign trade, India has also signed key free-trade agreements (FTAs), including CEPA between India and United Arab Emirates and ECTA between India and Australia. These agreements will boost bilateral trade, creating a growth environment for exports. It covers 13 industries, including electronics, automobile parts, batteries, pharmaceuticals, and solar energy.
Agriculture Sector Overview
Indian agriculture is a key component of the economy. Its share of GDP has reached almost 20% for the first time in 17 years, which makes it the only bright spot for GDP growth during 2020-21, according to the Economic Survey 20-21. Agriculture's share of GDP increased to 19.9% in 2020-21 from 17.8% in 2019-20. Agriculture and allied sectors' growth in VA (gross value added) have fluctuated over time. However, in 2020-21, despite a 7.2% decline in VA for the entire economy, agriculture's growth was positive at 3.4%. As a result of the continuous supply of agricultural commodities, food security has also been enabled, especially for staple grains like rice, wheat, pulses, and vegetables.
Service Sector Overview
The Indian service industry is renowned for its proficiency and effectiveness. India's service industries have expanded astronomically in the seven decades since independence. The service sector, which would have a Gross Value Added of 96.54 lakh crore at current prices in 2020–21, is the largest industry in India. Over 54% of India's GVA, which is now at 179.15 lakh crores, comes from the service sector today. The agriculture sector came in second with a contribution of 20.19%, and the Industry sector came in last with a contribution of 25.92%.
In contrast to other emerging market countries, India's economy has proven to be extremely robust to the deteriorating external environment because to strong macroeconomic fundamentals. In contrast to other emerging markets, it contends that India's economy is largely protected from global spillovers. This is partially attributable to India's sizable domestic market and its relative lack of exposure to global trade flows.
Makreo research has published a study titled, “India Macro-Economic Outlook- Performance of Industrial, Services and Agriculture Sectors”. The study evaluates country’s economic scenario covering all major sectors (manufacturing, agriculture and services). There is a detailed assessment provided for imports and exports of goods and services. Report is the right blend of qualitative and quantitative factors with macro-economic and sectors assessment. This report shows light on many aspects of country’s economy that can be helpful for the policy makers and industry experts to assess and draw strategic measures according to the changing economic scenario.
Sections Covered in the research report
India Macro Economic Outlook
The report helps reader to gain information on following areas
1. How are Indian sectors dealing with the COVID-19-led economic downturn?
2. What is the current situation of the industry and how did various sectors perform in the past?
3. What were the main influencing variables that gave the sector a boost in the past?
4. What does the manufacturing, service, and agricultural industries in India have in store for the future?
5. Which sector of the Indian economy is most important?
6. How is India's manufacturing sector doing right now, and what effects has COVID-19 had on the country's main industries?
7. How is India handling the COVID-19 situation, and how is the country's economy doing?
8. How Indian economy previously performed and what does the future growth projections expected to be?
Table of Content
Objective of the Study
1. India Macro Economic Outlook – EPTD Analysis
2. India Macro-economic Key Facts
3. India Trade Performance –Pre COVID-19 and Post COVID-19 Assessment
4. Performance of Manufacturing, Agriculture and Services Sectors
5. Performance of India Industrial Sector
6. Performance of India Agriculture Sector
7. Performance of India Service Sector
8. Indian Economy Outlook
Limitations of the Study