Since 1991, India Grew 9 Times, Your Income 5 Times
Back in 1991, India was struggling to keep itself above dark water. At the time the government had just started the process of liberalization. Inflation was at an all-time of 16.7% in August 1991, the country had just enough for two weeks of import and the Gulf crisis was aggravating the crisis. This led the Indian government to knock on IMF’s door.
Today, economists and analysts are debating over a fiscal deficit number of 3% of GDP for FY19, while back then in 1990-91, it was as high as 8.4% of GDP. India has come a long way from what the state of affairs was in 1991. Data showed India’s forex reserves were at record high levels at the end of January, the economy was looking up after three years of disruptions. Per capital capita is rising, inflation is low and within manageable limits and trade is catching up.
India is aiming to be a $5 trillion economy by 2025 and the following parameters give a positive outlook towards that direction.
At$2.3 trillion, India’s economy has grown 9 times since 1991. In 1991, India’s GDP rested at $266 billion. Agriculture, which in 1991 contributed 30% to the GDP, is not at 17.4%. India’s service sector contributes a staggering 54% to the country’s GDP.
India today is at the eighth position among countries holding highest foreign exchange reserves. India’s foreign exchange reserves reached a record level of about $432 billion (spot and forward) at end-December 2017. India had forex reserves of Rs 2,500 crore when the then FM Manmohan Singh delivered his 1991-92 Budget speech.
Budget size grows 19 times
The size of India’s Budget for 2017-18 was huge at Rs 21.47 lakh crore. In 1991-92, the Budget made provision for total expenditure of Rs 1.13 lakh crore.
Per capita income up 5.6 times
India’s per capita income swelled to $1,709.60 by 2016, latest data available with World Bank showed. This was 5.6 times the $300.10 per capita India had in 1991.
According to World Bank data, India’s domestic savings as a percentage of GDP stood at 24.3% in 1991 which moved up to as high as 38.3% in 2007.