India-U.S. Economic Relations (CRS Report for Congress)
| Release Date |
Revised Feb. 10, 2005 |
| Report Number |
RS21502 |
| Report Type |
Report |
| Authors |
Wayne Morrison and K. Alan Kronstadt, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
India is a country with a long history and a large population (more than one billion people, nearly half living in poverty). Given that it is the world's most populous democracy, a U.S. ally in anti-terrorism efforts, and a potentially major export market, India's economic development and its trade relations with the United States are of concern to Congress. India's economic growth has been relatively robust over the past few years. Real GDP grew by 8.2% in 2003 and by an estimated 5.7% in 2004. Global Insight, an economic forecasting firm, projects India's real GDP will rise by 6.3% in (FY) 2005 and 6.0% in 2006. By some measurements, India is among the world's largest economies. While on a nominal U.S. dollar exchange rate basis, India's 2003 GDP was $577 billion. However, on a purchasing power parity (PPP) basis (which factors in differences in prices across countries), India's GDP is estimated at close to $3 trillion. By this measurement, India is the world's fourth-largest economy (after the United States, China, and Japan).5 However, its per capita GDP on a PPP basis (a common international measurement of a nation's living standards) was $2,780, equal to only 7.4% of U.S. levels. Poverty is perhaps India's greatest problem. According to the World Bank, India has 433 million people (44.2% of the population) living below the international poverty measurement of less than $1 per day. This report will be updated as events warrant.
