Skyline of Hyderabad, India

Economic situation Business climate markedly improved

Over the past twenty years, India has seen stable economic growth. In 2018, the national economy grew by 6.8 per cent, and for 2019 and 2020 the International Monetary Fund (IMF) is expecting just a slight decline with figures of around six per cent.

In some fields – for example, information technology, pharmaceutics, space flight and biotechnology – the country is now a global leader. The World Bank's Doing Business 2020 report, which assesses the business climate in 190 countries, has India ranked at number 63 – up from 77 in 2019 and 100 in 2018.

Great need for jobs and training places

There is still a considerable imbalance in India's economy: the size of some economic sectors measured by their share of gross domestic product is not mirrored by the number of jobs they account for. More than 40 per cent of the working population is employed in the agricultural sector. However, that sector's share of GDP has shrunk over the years to a mere 15 per cent.

Growth and prosperity are being generated primarily by the services sector, which accounts for 49 per cent of GDP. However, the services sector provides jobs for only about a third of the population. Some 90 per cent of India's working population is employed in the informal sector.

What the country needs in order to reduce poverty is a great many new jobs – in particular for unskilled and low-skilled workers. There also needs to be a far greater range of better-quality training places on offer.

Pharma manufacturing in Bangalore, India

Pharma manufacturing in Bangalore, India

Pharma manufacturing in Bangalore, India

Agriculture

Indian agriculture is largely geared towards self-sufficiency. Because of population growth, cultivated areas are shrinking in many regions, and more and more people no longer have land of their own. Many smallholders are severely over-indebted.

The government has stated that it wants to reduce the income disparities that exist between the urban and the rural population. Better methods of cultivation and processing are to be introduced in order to boost farmers' yields. In addition, in rural regions, new jobs are to be created in non-agricultural sectors.