India
Unlocking the growth potential
Last update – January 2024
Country rating
LOW RISK FOR ENTERPRISE
Economic risk
Business environment risk
Political risk
Commercial risk
Financing risk
The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade.
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GDP | USD3385.1bn (World ranking 5, World Bank 2022) |
Population | 1417,2mn (World ranking 1, World Bank 2022) |
Form of state |
Federal Republic |
Head of government |
Narendra Modi (PM) |
Next elections |
2024, general |
Strengths & weaknesses
- Stable democracy, with peaceful changes of government
- Large internal market, providing some insulation from global business cycle
- Successful diversification into manufacturing (motor vehicles) and services (including call centres, IT and biotechnology)
- High annual GDP growth
- Low external debt relative to earnings, repayment capacity and reserves
- Favorable demographics
- Structural weaknesses including inadequate infrastructure and current and fiscal account deficits
- Financial risk to monitor, namely balance sheets of banks and non-bank financial institutions
- Weak structural business environment (slowly improving)
- Poverty and uneven income distribution, low literacy rates and fierce brain drain
- Vulnerable to natural disasters
- India-China relations to remain tense in part due to border disputes
Economic overview
Trade structure by destination/origin
(% of total, 2022)
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Exports | Rank | Imports | ||
United States 17.7% | 1 |
15.7% China |
||
United Arab Emirates 6.9% |
2 |
7.5% United Arab Emirates |
||
Netherlands 4.1% | 3 |
7.1% United States |
||
China 3.3% | 4 |
6.4% Saudi Arabia |
||
Singapore 2.6% |
5 |
5.5% Iraq |
Trade structure by product
(% of total, 2022)
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Exports | Rank | Imports |
Petroleum, petroleum products and related materials 21.4% | 1 | 25.3% Petroleum, petroleum products and related materials |
Non metallic mineral manufactures, n.e.s. 7.1% | 2 | 6.6% Coal, coke and briquettes |
Medicinal and pharmaceutical products 4.8% | 3 | 5.0% Gold, non-monetary (excluding gold ores and concentrates) |
Organic chemicals 4.5% | 4 | 4.9% Non metallic mineral manufactures, n.e.s |
Road vehicles 4.4% | 5 | 4.4% Telecommunication and sound recording apparatus |
Contact
Francoise Huang
Allianz Trade
Allianz Trade