TAT

India

Pakistan

griculture >Products

rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, cotton, wheat, rice, sugarcane, fruits, vegetables; onions, potatoes; dairy products, sheep, goats, poultry; milk, beef, mutton, eggs fish $172.1 billion Ranked 23th. 6 times more than Pakistan India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and have served to accelerate the country's growth, which averaged under 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for nearly two-thirds of India's output, with less than one-third of its labor force. India has capitalized on its large educated Englishspeaking population to become a major exporter of information technology services, business outsourcing services, and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth began slowing in 2011 because of a slowdown in government spending and a decline in investment, caused by investor pessimism about the government's commitment to further economic reforms and about the global situation. High international crude prices have exacerbated the government's fuel subsidy expenditures, contributing to a higher fiscal deficit and a worsening current account deficit. In late 2012, the Indian Government announced additional reforms and deficit reduction measures to reverse India's slowdown, including allowing higher levels of foreign participation in direct investment in the economy. The outlook for India's medium-term growth is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has yet to fully address, including poverty, corruption, violence and discrimination against women and girls, an inefficient power generation and distribution system, ineffective enforcement of intellectual property rights, decadeslong civil litigation dockets, inadequate transport and agricultural infrastructure, limited non-agricultural $27.48 billion Ranked 63th.

udget >Revenues

verview

Decades of internal political disputes and low leve of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accou for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakista export earnings, and Pakistan's failure to expand viable export base for other manufactures has lef country vulnerable to shifts in world demand. Offi unemployment is under 6%, but this fails to captu the true picture, because much of the economy is informal and underemployment remains high. Ov the past few years, low growth and high inflation, by a spurt in food prices, have increased the amo of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to almost 12% for 201 before declining to 10% in 2012. As a result of political and economic instability, the Pakistani ru has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Althoug the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in global economy. Remittances from overseas wor averaging about $1 billion a month since March 2 remain a bright spot for Pakistan. However, after small current account surplus in fiscal year 2011 2010/June 2011), Pakistan's current account turn to deficit in fiscal year 2012, spurred by higher pri for imported oil and lower prices for exported cott Pakistan remains stuck in a low-income, low-grow trap, with growth averaging about 3% per year fro 2008 to 2012. Pakistan must address long standi issues related to government revenues and energ production in order to spur the amount of econom growth that will be necessary to employ its growin and rapidly urbanizing population, more than half which is under 22. Other long term challenges inc expanding investment in education and healthcar adapting to the effects of climate change and nat disasters, and reducing dependence on foreign

TAT

India

Pakistan

employment opportunities, inadequate availability of donors. quality basic and higher education, and accommodating rural-to-urban migration. Indian rupees (INR) per US dollar -<br />53.44 (2012 est.)<br />46.67 (2011 est.)<br />45.73 (2010 est.)<br />48.41 (2009)<br />43.32 (2008)

xchange rates

Pakistani rupees (PKR) per US dollar -<br />93.4 (2012 est.)<br />86.34 (2011 est.)<br />85.19 (20 est.)<br />81.71 (2009)<br />70.64 (2008)

xports Commodities

petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel

textiles (garments, bed linen, cotton cloth, yarn), r leather goods, sports goods, chemicals, manufactures, carpets and rugs

DP > Composition, 23.8% end use >Exports Ranked 158th. 93% more than Pakistan goods and services

12.3% Ranked 188th.

GDP > Composition, end use Government nsumption

11.9% Ranked 143th. 13% more than Pakistan

10.5% Ranked 160th.

DP > Composition, end use Household nsumption

56.8% Ranked 133th.

82.5% Ranked 38th. 45% more than India

DP > Composition, end use nvestment in fixed pital

29.6% Ranked 37th. 2 times more than Pakistan

13.3% Ranked 176th.

DP > Composition, end use nvestment in ventories

3.5% Ranked 15th. 2 times more than Pakistan

1.6% Ranked 38th.

DP > Composition, sector of origin ndustry

17.6% Ranked 172nd.

22% Ranked 146th. 25% more than India

ousehold income or nsumption by ercentage share Lowest 10%

3.6% Ranked 26th.

3.9% Ranked 15th. 8% more than India

mports

crude oil, precious stones, machinery, fertilizer, iron and

petroleum, petroleum products, machinery, plasti transportation equipment, edible oils, paper and

TAT

India
steel, chemicals textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals 19% Ranked 89th.

Pakistan
paperboard, iron and steel, tea textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp 20.7% Ranked 71st. 9% more than India

Commodities

dustries

abor force > By cupation >Industry