ECONOMY

General Information

The main currency of the Republic of India is INR - Indian rupee.

Key priorities of the country's socio-economic development are stimulating consumer demand, supporting private investment, implementing structural reforms to improve the business climate, and creating new jobs for the growing population.

In 2024, India's nominal GDP amounted to 3,91 trillion US dollars.

The structure of the economy is distributed as follows: approximately 54,93% of GDP is formed by the service sector; 27,13% – by industry; 17,94% – by agriculture.

The main sources of foreign currency earnings are exports of finished goods, as well as services in the field of information technology and outsourcing. Remittances from citizens working abroad also play a significant role.

Special attention is paid to infrastructure development, including modernization of the transport network, expansion of the use of renewable energy sources, and stimulation of economic digitalization.

Share of Economic Sectors

India's economy is based on three key sectors: services, industry, and agriculture.

The service sector forms approximately 54,93% of GDP. The largest components are financial, insurance services, and real estate operations (22,92%), as well as trade, hotels, transport, and communications (17,51%).

The industrial sector accounts for 27,13% of GDP. Manufacturing, with a share of 13,89% of GDP, is represented by such industries as automotive, pharmaceuticals, chemical production, and textiles. The extractive industry, including coal and iron ore mining (1,80%). The construction industry (8,75%) demonstrates steady growth against the background of urbanization and infrastructure development.

Agriculture, despite a gradual reduction in its share of GDP to 17,94%, remains important for the employment of a significant portion of the population and ensuring food security. India is one of the world leaders in the production of rice, wheat, cotton, and sugar cane.

Foreign trade in the 2024/25 financial year reached an export volume of 824.9 billion dollars with imports of 915,19 billion dollars.

Export and Import

Exports from India form approximately 21,9% of GDP. Key export items are:

Finished goods: jewelry from precious stones and metals (16%);
Mineral fuels, oils, and waxes (12%);
Automobiles and spare parts (5%);
Nuclear reactors, boilers, machines, and mechanical devices (5%);
Pharmaceutical products (5%);
Agricultural products (14%).

Main export partners: USA (15%), United Arab Emirates (11%), Hong Kong (5%), China (4%), Singapore (4%).

The largest share of imported products consists of:

Mineral fuels (27%);
Pearls, precious stones, and jewelry (14%);
Electrical equipment and machinery (10%);
Nuclear reactors, boilers, machines, and mechanical devices (8%);
Organic chemical substances (4%).

Main import partners: China (16%), USA (6%), United Arab Emirates (6%), Saudi Arabia (5%).

Labor Force

India's labor force is approximately 610 mil. people, with the employment rate reaching 42,1%. The unemployment rate remains a serious problem and as of March 2024 was 7,6%.

The distribution of employment by economic sectors demonstrates a historical bias toward agriculture, despite its smaller share of GDP. Agriculture employs approximately 50% of the labor force, while the service sector accounts for more than 30%, and industry – approximately 20%.

India's labor market is characterized by:

Young and rapidly growing labor force structure;
Presence of a significant informal employment sector;
High level of education among personnel in such fields as IT and engineering.