GDP: This entry gives the gross domestic product (GDP) or value of all final goods and

services produced within a nation in a given year. GDP dollar estimates in the Factbook
are derived from purchasing power parity (PPP) calculations. See the note on GDP
methodology for more information.

GDP methodology: In the Economy section, GDP dollar estimates for all countries are
derived from purchasing power parity (PPP) calculations rather than from conversions at
official currency exchange rates. The PPP method involves the use of standardized
international dollar price weights, which are applied to the quantities of final goods and
services produced in a given economy. The data derived from the PPP method provide
the best available starting point for comparisons of economic strength and well-being
between countries. The division of a GDP estimate in domestic currency by the
corresponding PPP estimate in dollars gives the PPP conversion rate. Whereas PPP
estimates for OECD countries are quite reliable, PPP estimates for developing countries
are often rough approximations. Most of the GDP estimates are based on extrapolation of
PPP numbers published by the UN International Comparison Program (UNICP) and by
Professors Robert Summers and Alan Heston of the University of Pennsylvania and their
colleagues. In contrast, the currency exchange rate method involves a variety of
international and domestic financial forces that often have little relation to domestic
output. In developing countries with weak currencies the exchange rate estimate of GDP
in dollars is typically one-fourth to one-half the PPP estimate. Furthermore, exchange
rates may suddenly go up or down by 10% or more because of market forces or official
fiat whereas real output has remained unchanged. On 12 January 1994, for example, the
14 countries of the African Financial Community (whose currencies are tied to the
French franc) devalued their currencies by 50%. This move, of course, did not cut the real
output of these countries by half. One important caution: the proportion of, say, defense
expenditures as a percentage of GDP in local currency accounts may differ substantially
from the proportion when GDP accounts are expressed in PPP terms, as, for example,
when an observer tries to estimate the dollar level of Russian or Japanese military
expenditures. Note: the numbers for GDP and other economic data can not be chained
together from successive volumes of the Factbook because of changes in the US dollar
measuring rod, revisions of data by statistical agencies, use of new or different sources of
information, and changes in national statistical methods and practices.

GDP - composition by sector: This entry gives the percentage contribution of

agriculture, industry, and services to total GDP.

GDP - per capita: This entry shows GDP on a purchasing power parity basis divided by
population as of 1 July for the same year.

GDP - real growth rate: This entry gives GDP growth on an annual basis adjusted for
inflation and expressed as a percent.

GNP: Gross national product (GNP) is the value of all final goods and services produced
within a nation in a given year, plus income earned by its citizens abroad, minus income
earned by foreigners from domestic production. The Factbook, following current
practice, uses GDP rather than GNP to measure national production. However, the user
must realize that in certain countries net remittances from citizens working abroad may
be important to national well-being.

Economy - overview:
India's economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a
multitude of support services. Government controls have been reduced on
foreign trade and investment, and privatization of domestic output has
proceeded slowly. The economy has posted an excellent average growth
rate of 6% since 1990, reducing poverty by about 10 percentage points.
India is capitalizing on its large numbers of well-educated people skilled in
the English language to become a major exporter of software services and
software workers. Despite strong growth, the World Bank and others worry
about the continuing public-sector budget deficit, running at approximately
10% of GDP.

GDP:
purchasing power parity - $3.022 trillion (2003 est.)

GDP - real growth rate:

7.6% (2003 est.)

GDP - per capita:

purchasing power parity - $2,900 (2003 est.)

GDP - composition by sector:

agriculture: 23.6%
industry: 28.4%
services: 48% (2002 est.)

Population below poverty line:

25% (2002 est.)

Household income or consumption by percentage share:

lowest 10%: 3.5%
highest 10%: 33.5% (1997)

Distribution of family income - Gini index:

37.8 (1997)

Inflation rate (consumer prices):

4.6% (2003 est.)

Labor force:
406 million (1999)
Labor force - by occupation:
agriculture 60%, services 23%, industry 17% (1999)

Unemployment rate:
9.1% (2003)

Budget:
revenues: $48.3 billion
expenditures: $78.2 billion, including capital expenditures of $13.5
(FY01/02 est.)

Industries:
textiles, chemicals, food processing, steel, transportation equipment,
cement, mining, petroleum, machinery, software

Industrial production growth rate:

6% (2003 est.)

Electricity - production:
533.3 billion kWh (2001)

Electricity - production by source:

fossil fuel: 81.7%
hydro: 14.5%
other: 0.3% (2001)
nuclear: 3.4%

Electricity - consumption:
497.2 billion kWh (2001)

Electricity - exports:
321 million kWh (2001)

Electricity - imports:
1.54 billion kWh (2001)

Oil - production:
732,400 bbl/day (2001 est.)

Oil - consumption:
2.13 million bbl/day (2001 est.)

Oil - exports:
NA
Oil - imports:
NA

Oil - proved reserves:

4.33 billion bbl (1 January 2002)

Natural gas - production:

22.75 billion cu m (2001 est.)

Natural gas - consumption:

22.75 billion cu m (2001 est.)

Natural gas - exports:

0 cu m (2001 est.)

Natural gas - imports:

0 cu m (2001 est.)

Natural gas - proved reserves:

542.4 billion cu m (1 January 2002)

Agriculture - products:
rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water
buffalo, sheep, goats, poultry; fish

Exports:
$57.24 billion f.o.b. (2003 est.)

Exports - commodities:
textile goods, gems and jewelry, engineering goods, chemicals, leather
manufactures

Exports - partners:
US 22.4%, UK 5.1%, Hong Kong 4.5%, Germany 4.3%, China 4.1%
(2002)

Imports:
$74.15 billion f.o.b. (2003 est.)

Imports - commodities:
crude oil, machinery, gems, fertilizer, chemicals

Imports - partners:
US 6.9%, Belgium 6.4%, China 4.5%, Singapore 4.4%, UK 4.4% (2002)
 Debt - external:
$95.3 billion (2003 est.)

Economic aid - recipient:

$2.9 billion (FY98/99)

Currency:
Indian rupee (INR)

Currency code:
INR

Exchange rates:
Indian rupees per US dollar - 46.58 (2003), 48.61 (2002), 47.19 (2001),
44.94 (2000), 43.06 (1999)

Fiscal year:
1 April - 31 March

India’s literacy rate stands at 64.8%

The Economic Times, Saturday 10th July 2004,

NEW DELHI, JULY 10: As much as 64.8 per cent of India’s population is literate
while Uttar Pradesh continues to be most populous state followed by Maharashtra,
according to details of the 2001 Census released on Saturday.

While male literacy rate stood at 75.3 per cent, female literacy rate was 53.7 per
cent, Registrar General of India J K Banthia told a seminar on Census Data
Dissemination here.

Disputes - international:
Kashmir remains the world's most highly militarized territorial dispute with
portions under the de facto administration of China (Aksai Chin), India
(Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas),
but recent discussions and confidence-building measures among parties
are beginning to defuse tensions; India does not recognize Pakistan's
ceding lands to China in the 1965 boundary agreement; disputes with
Pakistan over Indus River water sharing and the terminus of the Sir Creek
Estuary at the mouth of the Rann of Kutch, which prevents maritime
boundary delimitation; Pakistani maps continue to show Junagadh claim in
Indian Gujarat State; most of the rugged, militarized boundary with China
is in dispute, but sides have committed to begin resolution with
discussions on the least disputed Middle Sector; Joint Border Committee
with Nepal continues to work on resolution of minor disputed boundary
sections; discussions with Bangladesh remain stalled to delimit a small
section of river boundary, to exchange 162 miniscule enclaves in both
countries, to allocate divided villages, and to stop illegal cross-border
trade, migration, and violence; Bangladesh protests India's attempts to
fence off high-traffic sections of the porous boundary; dispute with
Bangladesh over volcanic New Moore/South Talpatty/Purbasha Island in
the Bay of Bengal deters maritime boundary delimitation; India seeks
cooperation from Bhutan and Burma to keep out Indian Nagaland
insurgents; joint border commission continues to work on small disputed
sections of boundary with Nepal; India has instituted a stricter border
regime to restrict transit of Maoist insurgents and illegal cross-border
activities from Nepal