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Economy

 

 

GDP - pr. capita

 

USD 1.626 (IMF, 2014 est.)            

 

Annual GDP growth 

 

5.0 % (World Bank, 2013) 

 

Foreign debt

 

USD 455.9 (Ministry of Finance, December 2014)

 

Trade balance

 

USD -125.4 billion (Ministry of Commerce & Industry, 2014)

 

Currency

 

Indian Rupee (INR)

 

Exchange rate

 

100 INR equals approx. 10.59 DKK (25th February 2015)

 

Corruption

 

India is ranked 85th (of 175 countries) on Transparency Internationals Corruption Perceptions Index (2014) with a score of 38. Denmark is ranked 1st with a score of 92.

 

Danish development programs

 

Denmark phased out its bilateral development aid to India in 2005, but it still supports NGO’s and international organisations in India.

 

Danish export, goods
India bought Danish commodities for DKK 2.2 billion in 2013. It fell by 15.6% compared to 2012 export for goods.

 

Danish export, services

India bought Danish services for DKK 6.9 billion in 2013. It increased by 12.4 % compared to 2012.            

 

Trade with Denmark

 

Denmark has a surplus on the Trade balance with India, where services is the key contributor. In 2013 it was DKK 1.4 billion (Commodities and Services). (Danmarks Statistik, 2015)

 

Indo-Danish trade in different sectors

 

The biggest Danish export to India is within shipping with DKK 5.9 billion in 2013. Of exported goods medicine and pharmaceuticals made up DKK 362 million. India was Denmark's 29th biggest market for export in 2012. The most important imported commodity from India to Denmark was clothing and accessories. (Danmarks Statistik, 2015)            

Economic situation 
 
India’s economy is continuing to grow at relatively high levels. However, the country has also been hit by the financial crisis, and growth rates have been lower the last years. Real pay increase on approximately five percent p.a. and a fast growing population secures a strong domestic demand. Except the financial crisis reasons for the more moderate growth rates are to be found in decreasing growth rates within sectors of construction, industry and consumption from 2011-2012 (IMF, 2013). 
 
During the last ten years India’s economy has grown 6-10 percent p.a., which makes it fastest growing economies in the world, and fourth largest. The service industry, including the IT sector, has grown rapidly recent years and makes up for 64 % of GDP. Second largest is the Indian industry constituting 18 % of GDP, followed by agriculture at 17 %. Despite agriculture’s decreasing share of GDP, it still employs 53 % of the Indian workforce (World Factbook, 2013). 
 
Economic growth is limited due to a massive bureaucracy, lack of infrastructure, corruption, rigid labour market rules and extensive control of foreign investments. However, the government’s target is to reach economic growth rates of two digits within the next few years. They will achieve this by continuing efforts for liberalisations, which were initiated in 1991, and by domestic and foreign investments in infrastructure and education.
The government also wants to concentrate on development of the Indian agricultural sector, which is characterised by inefficiency and low-level growth. Through these actions the government hopes to increase the amount of foreign direct investments, which is still far below what China is able to attract. However, the government’s endeavours are complicated by interests and a trade deficit on USD 75 billion in 2012 (IMF, 2013). 
 
32.7 percent of India’s rapidly growing population lives for less than USD 1.25 per day (World Bank, 2013), but the middle class is also growing fast with incomes ranging from 200,000 to one million rupees a year (approx. DKK 20,000-100,000). Estimates show that the middle class will grow from 300 million today to 600 million in 2025 (Danish Chamber of Commerce, 2012).

 

 

 

Latest update in February 2015