International Market Development

International market development | Comprehensive analysis of Indian economy and market conditions

Author : Bozhou Marine

Update time : 2020-11-30 12:22:53

In this article, we mainly introduce the basic situation of the Indian market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure construction, GDP, foreign exchange reserves, employment conditions, prices, corporate income tax, personal tax rates, etc.

  Introduction

The Republic of India (Hindi: भारत गणराज्य, English: The Republic of India, India), referred to as "India", is located in South Asia and is the largest country in the South Asian subcontinent. It borders Bangladesh, Nepal, Bhutan and China to the northeast, Myanmar to the east, Sri Lanka across the sea to the southeast, and Pakistan to the northwest. It borders the Bay of Bengal in the east and the Arabian Sea in the west, with a coastline of 5560 kilometers.

  Capital

New Delhi is the capital of India, the political, economic and cultural center of the country, and the largest commercial center in northern India. According to the "World Urbanization Prospects Report" released by the United Nations in 2014, the population of 25 million, ranking second in the world, Mumbai, with a population of more than 21 million, has become the most populous city in India. The main industries are IT, telecommunications, catering and accommodation services, finance, media and tourism.

  Main City

1. Mumbai

Mumbai is a coastal city in western India, the largest port in India, the center of the cotton textile industry, and the capital of Maharashtra. The Mumbai region is the second most densely populated area in the entire country. According to the 2016 demographics, the region The population is approximately 21.3 million. Mumbai is also the wealthiest city in India. The millionaires and multimillionaires here top all the cities in India, an important trade center and port city. The Port of Mumbai is a natural deep-water port that bears more than half of India's passenger traffic and has a considerable cargo throughput. Mumbai is the business and entertainment capital of India, with important financial institutions such as the Reserve Bank of India, Bombay Stock Exchange, National Stock Exchange of India and the headquarters of many Indian companies. The city is the home base of India's Hindi film and television industry (known as Bollywood).

2. New Delhi

New Delhi is the capital of the Republic of India, the political, economic and cultural center of the country, and the largest commercial center in northern India with a population of 25 million, ranking second in the world. The main industries are IT, telecommunications, catering and accommodation services, finance, media and tourism. New Delhi was expanded on the basis of the ancient city of Delhi. Construction began in 1911 and took shape in early 1929. Became the capital since 1931. India became the capital after independence in 1947. New Delhi and Old Delhi are separated by the Indian Gate, with New Delhi to the south and Old Delhi to the north. New Delhi is also the center of national transportation. There are 5 national highways, 6 railways connecting all parts of the country, and two airports.

3. Kolkata

Kolkata is the capital of the Indian state of West Bengal. Located in the Ganges Delta region of eastern India, on the east bank of the Hughli River. It is the third largest city in India (second only, and the largest hemp spinning center in India.

For 140 years from 1772 to 1911, Kolkata was the capital of British India. During this period, the city has been the center of modern education, science, culture and politics in India, and there are still a large number of Victorian-style buildings left over from that time. However, after India's independence in 1947, the city experienced a long period of economic stagnation due to various unfavorable factors. However, since 2000, the economic recovery has replaced the pathological decline, and the city has begun to renew its vitality for growth.

4. Chennai

Chennai, a city on the east coast of South India. Located on the shore of the Bay of Bengal, it is the capital of Tamil Nadu, a large commercial and industrial center, and is known for its cultural heritage. The fourth largest city in India and one of the 100 largest metropolitan areas in the world.

5. Bangalore

Bangalore (Bangalore) is a city in southern India, the capital of Karnataka, with a population of approximately 10.5 million. After India's independence in 1947, Bangalore developed into a center of heavy industry. The successful establishment of high-tech companies in Bangalore has made it the center of information technology in India, known as the "Silicon Valley of Asia". Bangalore is a hub for scientific and technological research in India, among which the Indian Academy of Sciences is the oldest university and research institute in India. Other important research institutes include Indian Institute of Astrophysics, Raman Research Institute, Jawaharlal Nehru Center for Advanced Research, Indian National Biology Center and Indian Statistics.

  Jet Lag

Local time in India is 2.5 hours slower than Beijing time. After subtracting 2.5 hours from Beijing time, it is the local time in India.

  Population

India is the second most populous country in the world after China, and its population ranks second in the world. Among them, the male population is 623.7 million and the female population is 586.5 million. The population density of the entire country is 412 people per square kilometer, ranking 31st in the world.

  Nation

At present, there are more than 200 ethnic groups in India. The main ethnic group is the Hindustani, which accounts for 46.3% of the total population of India. Others are mainly ethnic minorities: Telugu, Gujarati, Marathi, and Bengali , Canada, Punjab, Malayalam, Assam, Orissa, etc.

  Language

There are about 2,000 languages in India, 55 of which have their own writing and literature. The official language of India is Hindi, spoken by 30% of the population; English is the "second additional official language" and is also a nationally spoken language, mainly used in political and business interactions. There are also 21 other planned official languages of ethnic minorities.

  Main Holiday

India is a country with very diverse races and cultures. It is also the country with the largest number of religious followers in the world. This diverse but distinctive religious culture makes India have many unique holidays.

● Republic Day of India (Republic Day)-January 26
● Gandhi Jayanti's death anniversary (Gandhi Jayanti)-January 30
● Holi Festival-between 2 and 3 months of the Gregorian calendar
● Ram Navami (Ram Navami)-around 3-April of the Gregorian calendar
● Mahavir Jayanti (Mahavir Jayanti)-around 3-April of the Gregorian calendar
● South India Harvest Festival
● Harvest Festival in North India
● Good Friday/Good Friday-the Friday before Easter
● Vesak-the day of the full moon in May
● Maha Shivratri-the third night of the second half of May in the Indian calendar
● India Independence Day (Independence Day)-August 15
● Bracelet Festival-August
● Janmashtami (Janmashtami)-around 8-9 in the Gregorian calendar
● Dussehra (Dussehra)-around 9-10 months in the Gregorian calendar
● Diwali/Wan lights Festival/Diwali-around 10-11 in the Gregorian calendar
● Eid al Adha (Bakr Id/Eid ul-Adha)-no fixed time
● Christmas (Christmas)-December 25

  Natural Resources

India is rich in mineral resources, with bauxite reserves and coal production ranking fifth in the world, and mica exports account for 60% of world exports. As of the end of 1996, the recoverable reserves of India’s main resources are estimated to be: 46.389 billion tons of coal (excluding coking coal), 9.754 billion tons of iron ore, 2.253 billion tons of bauxite, 124 million tons of chromite, 65.5 million tons of manganese ore, and zinc. 5.89 million tons, 3.52 million tons of copper, 1.36 million tons of lead, 68.477 billion tons of limestone, 81 million tons of phosphate, 86 tons of gold, 896 million tons of oil, and 697 billion cubic meters of natural gas. In addition, there are mineral deposits of mica, gypsum, diamonds, titanium, thorium, and uranium.

The forest coverage rate is 21.9%.

  Major Industries

Textile industry

India’s textile industry is relatively well-known. Its exports account for more than a quarter of India’s total exports. India has tens of millions of people engaged in the textile industry, and the number of employees in the textile industry is second only to agriculture. India is one of the main producing areas of cotton and jute in the world, and its output also ranks first in the world, so it is more conducive to promoting the rapid development of India's textile industry.

Software industry

This is India’s few globally competitive industries, and India contributes 20% of global software exports. In the field of IT outsourcing, India accounts for more than 50%. Among the top 15 IT outsourcing companies in the world, Indian companies account for seven. The city of Bangalore in India is called the "Silicon Valley of India".

Generic Pharmaceutical Industry

India's generic drug industry is also very developed. India is a big country of generic drugs. 20% of the global generic drugs come from India, 30% of the generic drugs in the United States come from India, and 10% of medical expenditures are for Indian drugs. Half of the global vaccine comes from India.

  Infrastructure

Railway

The railway is India’s largest state-owned sector and the main means of transportation, with a total length of 64,015 kilometers, ranking second in Asia, second only to China’s 110,000 kilometers railway, and fourth in the world.

Water Transport

In terms of water transportation, there are 12 major ports, including Mumbai, Kolkata, Chennai (formerly known as Madras), Cochin, and Goa, which bear 3/4 of the freight volume. Mumbai is the largest port, with 1/5 shipping and 1/2 container shipping passing through this port. The shipping capacity ranks 18th in the world.

Air Transport

In terms of air transportation, there are 14 airlines operating scheduled flights, including Air India and Air India, with 334 aircraft. There are 65 air transport companies specializing in non-scheduled flights and 201 aircraft. The routes reach major cities on all continents. There are 5 international airports located in Delhi, Mumbai, Kolkata, Chennai and Trivandrum. There are 92 domestic airports.

The economy has grown rapidly in recent years and will drop sharply in 2020

For the entire year of 2019, India’s total nominal GDP was approximately US$2.85 trillion, slightly surpassing the United Kingdom (GDP in 2019 was approximately US$2.83 trillion) and rising to the fifth place in the world.

India’s per capita GDP in 2019 exceeded US$2,100—about 20.4% of China’s per capita level in the same period, or China’s per capita GDP was 4.9 times that of India. This means that although China and India are the two countries with the strongest overall economic strength among developing countries, the gap between the two countries is actually very large.

  India's GDP growth rate trend graph over the years

Affected by the epidemic, the GDP growth rate in 2020 will drop sharply. Looking forward to the entire 2020, the IMF predicts that the Indian economy may actually decline by 4.5%, while S&P forecasts a real decline of 5%.

Stable growth of foreign exchange reserves hit a new high

From 2012 to 2020, India’s foreign exchange reserves have grown steadily and significantly.

On November 27, 2020, the latest data released by the Reserve Bank of India showed that as of the week of November 20, the country’s foreign exchange reserves increased by US$2.518 billion, a record high of US$575.29 billion.

  Unemployment rate hits record high

Affected by the epidemic, India is facing growth bottlenecks such as high unemployment and unsustainable release of consumer demand, and lack of momentum for economic recovery.

Data from the Indian Economic Monitoring Center show that the unemployment rate in India rose to 8.5% in October, the highest level since August 2016.

After 2011, the CPI rose sharply, and inflationary pressures were greater

After 2011, India's consumer price index CPI has seen significant long-term growth.

During 2011-2020, India's inflationary pressure is relatively high. The inflation rate has remained high this year due to the epidemic.

  Corporate income tax 25.17%

From 2019 to 2020, the Indian corporate income tax rate has been stable at around 25.17%.

  Personal income tax 35.88%

From 2018 to 2020, India's personal income tax rate has been stable at 35.88%.

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