Located in South Asia, India is the second most populated country (about 1.34B people) in the world, and the seventh-largest country by size. It is surrounded by the magnificent Indian Ocean on the south, the Arabian Sea on the southwest and the Bay of Bengal on the southeast, welcoming people worldwide. The Capital city - New Delhi, is located at the north-central part of this developing country, which has many neighbours, such as Pakistan, China, Nepal, etc.
With a history of 5300 years from the early Indus Valley Civilization, India was under the rule of many empires. After the successful campaign of the nonviolent resistance employed by Mahatma Gandhi, India finally achieved its independence in 1947 from British dominion. Now, India has become a fast-growing major economy with +6% annual GDP growth rate since 2011, a hub for information technology services, and operating several space programs including planned or completed lunar missions.
Religion: India is the largest democracy and is notable for its religious diversity, including Hinduism, Buddhism, Jainism, Sikhism, Islam and Christianity as the nation's major religions. The predominant religion, Hinduism, is stated to be shaped by various historical schools of thought, including those of the Upanishads, the Yoga Sutras, the Bhakti movement, and the Buddhist philosophy.
Entertainment: India's cinema is famous among millions of people around the globe. There are eight dance forms such as Bharatanatyam, Kathak, Kathakali, Mohiniyattam, Kuchipudi, Manipuri, Odissi and Sattriya. Many of them, with narrative forms and mythological elements, have been accorded classical dance status by India's National Academy of Music, Dance, and Drama.
Food: India is famous for its spices, cuisine and festivals which are characterized by colour, gaiety, enthusiasm, prayers and rituals
India's financial services sector, contributing 6 percent of its total GDP, is experiencing fast expansion, due to the solid development of its existing wealth management firms. This sector is comprised majorly of commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. Banking representatives have allowed new substances, such as the freshly emerged payments banks, to enter the sector. Besides, financial sector in India is predominated by banking sub-sector (>64% total assets).
Over the years, the Indian government and the Reserve Bank of India (RBI) has been taking actions, including launching the Credit Guarantee Fund Scheme to facilitate financing for Micro, Small and Medium Enterprises (MSMEs), issuing guidelines for banks regarding security conditions, and setting up the Micro Units Development and Refinance Agency (MUDRA).
In order to improve credit accessibility for Micro, Small and Medium Enterprises (MSMEs), India has created another gateway called 'Udyami Mitra', launched by Small Industries Development Bank of India (SIDBI).
India has received a rating of "10" in assuring investors' perquisites on the back of changes, performed by the Securities and Exchange Board of India (SEBI) in 2017. Its life insurance sector is the largest globally, and its market size is expected to reach approximately $400 billion by 2020. GDP of India is expected to grow at an average of 8% in the next four decades, making it potentially the fastest-growing major economy until 2050.
|Agriculture||Vegetables, milk, spices, Jute, oil seed, wheat & rice.|
|Manufacture||Chemicals, construction equipment, pharmaceuticals, steel, iron & electronics.|
|Services (Including financial)||56.9% (2013 estimate)|
|RMSI Pvt. Ltd.||Information Technology|
|Marriott Hotels India Pvt. Ltd.||Hospitality|
|Godrej Consumer Products Ltd.||Manufacturing & Production|
|Lupin Ltd.||Biotechnology & Pharmaceuticals|
|Bajaj Finance Ltd.||Financial Services & Insurance|
|Radio City 91.1 FM||Media | Radio|
|Mahindra & Mahindra Automotive & Farm Equipment Sectors||Manufacturing & Production | Automotive|
|Vodafone India Ltd.||Telecommunications|
|The Oberoi Group||Hospitality | Hotel/Resort|
|HDFC Standard Life Insurance Company Ltd.||Financial Services & Insurance | Life Insurance|
Most of the trading in India occurs on two stock exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). These two stock exchanges' performances have great influences on the country's business, and other 21 official stock exchanges approved by Securities and Exchange Board of India (SEBI). In 2018, National Stock Exchange achieved total market capitalization of more than US$2.27 trillion. Presto ATS is the most popular algorithmic trading platform for automated trading in India. Overall, stock exchanges' contribution to national GDP is only 4%. Since January 2017, the Indian government has been allowing foreigners to participate in domestic stock trading. Foreigners are allowed to trade and invest on the Indian exchanges directly, named Foreign Institutional Investment (FII), but all foreign traders have to be registered with the SEBI.
Bombay Stock Exchange (BSE) was founded on July 9th, 1875. According to most recent surveys, BSE hosts over 5,000 registered firms, with around 500 firms constituting over 90% of its market capitalization, and the remaining parts are comprised of extremely illiquid shares.
On the other hand, National Stock Exchange (NSE) was founded in 1992, and commenced operations in 1994, with around 1,600 registered firms. As of 2009, NSE held dominant shares in spot trading with 70% of market shares, and it is almost the monopoly of derivatives trading, owning nearly 98% share.
BSE and NSE operates based on the same trading mechanism, trading hours, settlement process, etc. Besides, their competition for order flows produces positive results such as reduced costs, market efficiency, and innovation. Arbitragers participation stabilizes the market prices within a relatively secure range. India shares with the world the pride of its fully automated trading system and multiple varieties of financial products.
Two most prominent market indexes in India are Sensex and Nifty. Sensex is the oldest market index for equities which was created in 1986; it includes shares of 30 firms listed on the BSE, which represent about 45% of the index's open market capitalization. Another index is the Standard and Poor's CNX Nifty which was created in 1996; it includes shares of 50 firms listed on the NSE, which represent about 62% of its open market capitalization. Online Trading Academy in Mumbai has been in existence since 1997 and thrives at teaching the skills required for trading.
India provides an integrated platform to trade in both cash and derivatives, hosting around 4,000 corporate brokers across the country. India's financial exchange has gained significant ground by following its universal companions and the modern market mechanisms helped to create a niche for themselves. The most valuable stocks in India are listed below:
India's economy entered recession in the first quarter of 2019 with GDP (Gross Domestic Product) growth falling a five-year low of 5.8 per cent. From stock market to auto sales and textiles to inner garment industries, all of these are facing a record low sale. According to data, half of the Indian companies are earning less than ₹ 1 crore ($141,240.00). Auto sales fell 31 per cent in July, followed by a heavy slump in sales from biscuits to oil products industries.
2008 Financial Crisis: During the year 2008 and 2009, financial crisis was happening in the global markets, following the collapse of the Lehman Brothers, which had serious implications for India. It had not only led to massive outflows of Foreign Institutional Investment (FII), but it also compelled Indian banks and corporations to shift their credit demand from external sources to domestic banking sectors. These events imposed considerable pressures on liquidity in the domestic market and consequently provoked an economic decline. The economic decline, coupled with a general loss of confidence, increased the risk aversion of Indian banks, which eventually dragged down credit expansion in the domestic market. Furthermore, given the recessionary conditions in many advanced economies, the demand for India's exports was also decreased by more than 17% from October 2008 to May 2009.
2000 Dotcom Bubble: During the first half year of 2000, the financial policies remained expansionary. India experienced the dot-com bubble because that the majority of its technology and internet companies stock prices had been sinking from March 2000 to Sep 2001. Indian IT companies were not completely based on the US market; besides, they have sensible business principles and a viable business model, which makes its economy start to recover after April 2003.
Monetary Crisis: India's exchange rate was subjected to critical change which began with a drop of the value of rupee leading up to mid-1991. Authorities at the Reserve Bank took partial actions to protect its currency from the decline by expending its international reserves. However, with the foreign reserves on the edge of exhaustion, the Indian government permitted a sharp depreciation to tale place in two steps within three days (July 1 to July 3, 1991) to counter major foreign currencies. World Bank and IMF withdrew their assistance, leaving the authorities with no choice but to mortgage the country's gold to avoid default on payments.
Consequently, Indian authorities airlifted gold countrywide as a vow to a giant contingent bailout from the International Monetary Fund (IMF) and the World Bank in alternate for a loan to cover stability of fee debts. This massive turmoil catalyzed the liberalization of the national economy, as one of the conditions stipulated in the World Bank mortgage (structural reform), which requires India to be open to participation from foreign entities in its industries, including nation owned enterprises.
Indus valley civilization flourished between 2800 BC and 1800 BC, with an advanced and increasing economic system. Indus valley's habitants practised agriculture, domesticated animals, crafted tools and weapons from copper, bronze and tin, and traded with some Middle East countries.
Agriculture was the main economic activity in the Vedic age. During the second urbanization, several urban centres were developed in North India, which impacted trade and commerce. Ancient Indians maintains trade relationships with counterparties such as Middle East, Roman Empire and South East Asia. Many Indian trading communities were settled in other countries. Most of the Indian population lived in villages and the economies of these villages were self-sustaining.
Agriculture also provided major raw materials for industries such as textile, food processing and crafts. Besides farmers, other classes of people worked as barbers, carpenters, doctors, goldsmiths, weavers, and many more. In towns and urban centres, trade took place through coins, but in villages barter was the main system of economic activities. Traditionally, there was a joint family system and the members of a family would pool their resources to invest in business ventures. Products such as muslin of Dhaka, calicos of Bengal, shawls of Kashmir, textiles and handicrafts, agricultural products like pepper, cinnamon, opium and indigo were exported to Europe, Middle East and Southeast Asia in return for gold and silver.
Europeans entered India in the 16th-century, and furthermore transformed commerce and trade, concentrating mainly on spices, handicrafts, cotton clothes and indigo, until the British took fully control of India. Gradually the British achieved political supremacy, controlled and subverted the Indian economy according to their own needs. With the establishment of British rule, draining of wealth from India began to happen. In the 20th century, Mahatma Gandhi organized millions of people in a national campaign of non-violent civil disobedience to obtain independence from the British government in 1947. Industrial infrastructure was poor and fragile when the British left India.
After independence, India opted for planned economic development. But, the key concern was to develop heavy industries. With this, rapid industrialization began. Initially, economic policies were socially oriented and controlled by the state, but later followed a mixed economy pattern.
However, in the late eighties and at the beginning of the 1990s, the Indian policymakers realized that a state-controlled economy didn't produce desired results in almost 45 years and decided to pursue an economic policy based on liberalization, privatization and globalization. During this era, India witnessed rapid growth in some sectors of the economy.
(Civil Rights Leader)
APJ Abdul Kalam
(Former president & Scientist)
Mukesh Dhirubhai Ambani
The word 'Rupee' is said to evolve from two Sanskrit words: one for the coin named as 'Rupya' and second for silver named as 'Rupiya'. Reserve Bank of India (RBI) plays an important role in maintaining the stability of the exchange value, and it also formulates and administrates monetary policy to ensure stability in prices while promoting the production of goods and services via deployment of credit.
1947y - 1950y: Through independence, the Lion Capital of Sarnath was introduced as the national emblem, replacing the portraits of British monarchs. The first post-independence currency was the one-rupee note.
1996y: The smiling Mahatma series was first introduced in 1996, which remains to today. The picture was taken from an actual photograph of him, alongside British politician Lord Frederick William Pethick-Lawrence.
Total money supply in India (including the various deposits in commercial banks, the reserve bank, and the currency in the hands of the public) is estimated to have grown by 60 percent since 1995 and have been a bit more than ₹ 3 trillion (US$66 billion) in 2000.
As of now, this amount has grown to ₹ 156 trillion (US$2.19 trillion). Since 1996, various objects have been featured on Indian Currency notes, such as the Indian Parliament, the Himalayas, etc. After demonetization, we saw the introduction of the new 500- and 2000-rupee notes in 2016, 200-rupee notes in 2017, and 50- and 100-rupee notes in 2018. It is expected that the rupee will recover in 2020, when the combined effect of easy liquidity and monetary policy supports a revival in overall growth.
Ancient Indians were one of the earliest users of coins as money, along with China and Mesopotamia. Cowrie shells were also another form of money until a few centuries ago.
6th Century BC: Around this time, irregularly shaped coins made mostly of the silver were invented by various kingdom such as Saurashtra, Dakshin, Panchal, Magadha, etc. Although the coins were somewhat shapeless, they had distinct marks like floral patterns, animals, religious symbols, etc.
4th to 2nd Century BC: This was the period of the illustrious Maurya dynasty. Mauryan coins generally weighed around 3 grams and had specific marks like the Sun and the six-armed 'god'. Most of these coins were circular in shape, with a few of them being rectangular/square.
1st Century AD: The Kushans bought Greek tradition of imprinting portraits on their coins. By this time, gold, silver, copper and lead were popular choices for minting coins. Kushan coins had elaborated imprints of Bactrian legends and kings holding weapons or other objects, completed with scriptures on the side of the coin. In the same way, modern-day coins continue to follow the Kushan blueprint.
12th Century AD: Domination of the Turkish sultanate introduced Islamic calligraphy, a tradition that their illustrious successors continued. High-value coins of this era were called 'Tanka' and were made of the gold, silver and copper, while coins of lesser value were called 'Jitals'.
1540y - 1545y: Sher Shah Suri's five-year reign is significant in the history of Indian currency. He introduced a new consolidated currency in the country, which withstood changes in reign and survived even up till the early days of British rule. Sher Shah Suri issued silver coins weighed around 11 grams and named them 'Rupiya'.
Mughal Era: Silver coins in the Mughal era were called Tankas or Shahrukhis and assumed different imprints as the rulers changed. Parallel to these, however, Sher Shah Suri's Rupiya legacy continued. Shahrukhis were always marled with Islamic calligraphy imprints and were made of silver, except for the copper coins minted during the reign of Humayun and Akbar.
1717y: Mughal currency remained prevalent as the East Indian Company domination commenced, until the Mughal emperor Farrukhsiyar gave permission to the British to mint Mughal coins at the Bombay mint. Then, the British started minting the coins form gold, silver, copper and tin.
1770y - 1832y: Paper money was introduced for the first time in India under the sponsorship of early financial institutions like the Bank of Hindostan, General Bank of Bengal and Bihar, and the Bengal Bank. During this time period, both semi-government and private banks could issue currency notes. Financial instruments like hundis, shares, and bonds also started appearing in the Indian money market.
1835y: This is the year of the passing of the Coinage Act. This act standardized the currency for undivided India. And as Mughal Empire wound up in the next few decades, portraits of the British royalties made their first appearance on the rupee, notably Queen Victoria, King Edward VII and King George V.
1935y: Reserve Bank of India was established and was empowered to issue money for the Indian government. The first note issued by the RBI was a five rupee note with the portrait of King George VI.
|National Song||"Vande Mataram"|
|Currency||Indian Rupee (INR)|
|GDP / GDP Rank||$8662.35 Billion USD|
|GDP Growth Rate||7.3 percent|
|GDP Per Captial||$6615.782 (PPP)|
President- Ram Nath Kovind
Vice President- Venkaiah Naidu
Prime Minister- Narendra Modi
Chief Justice- Ranjan Gogoi
|Website||Go to the web|
|Public Debt||69.5 percent of GDP|
|Unemployment Rate||3.5 percent|
|Labor Force (Occupation)||-|