ts. GDP growth in
1992-95 has averaged nearly 5%. Most of the country's external
fundamentals - including the current account balance and reserves
(now nearly $17 billion) are healthy. Party politics is increasingly
shaping the debate over economic reforms. In addition, the 25 Indian
states and several union territories, which are playing a more
active role in determining economic policy, are further complicating
the economic climate. The Indian Government will also have to watch
closely rising government expenditures and higher debt servicing
which could create a debt trap by the turn of the century.
Nevertheless, India should achieve economic growth of 5.5%-6.5%
annually through the next several years. Even if a weak coalition
government comes to power in 1996 and is unable to push reforms
aggressively, parts of the economy that have already benefited from
deregulation will continue to grow. Moreover, the country can build
on other strengths, including its diverse industrial base, large
scientific and technical pool, well-developed legal system, and its
large middle class to achieve higher growth.

GDP: purchasing power parity - $1.4087 trillion (1995 est.)

GDP real growth rate: 5.5% (1995 est.)

GDP per capita: $1,500 (1995 est.)

GDP composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Inflation rate (consumer prices): 9% (1995)

Labor force: 314.751 million (1990)
by occupation: agriculture 65% (1993 est.)

Unemployment rate: NA%

Budget:
revenues: $36.5 billion
expenditures: $54.9 billion, including capital expenditures of $11.4
billion (FY94/95)

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

Industrial production growth rate: 10% (1995 est.)

Electricity:
capacity: 81,200,000 kW (March 1995)
production: 314 billion kWh (1993)
consumption per capita: 324 kWh (1993)

Agriculture: rice, wheat, oilseed, cotton, jute, tea, sugarcane,
potatoes; cattle, water buffalo, sheep, goats, poultry; fish catch
of about 3 million metric tons ranks India among the world's top 10
fishing nations

Illicit drugs: licit producer of opium for the pharmaceutical
trade, but an undetermined quantity of opium is diverted to illicit
international drug markets; major transit country for illicit
narcotics produced in neighboring countries; illicit producer of