Research assignment:
Running head: INDIA’S ECONOMY 1
INDIA’S ECONOMY 3
India’s and The United States Economies, Trade and Unemployment
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Unemployment rate
India is one of the fastest growing economies in the world. As per December 2017, the unemployment rate was 3.6% which was an increase of 0.1% from the previous year. This increase in unemployment rate was due to a drop in the labor force participation rate. This data is according to a report by the World Bank. The United States on the other hand, has unemployment rate was 4.1% in December 2017. This is relatively higher than that of India, this means that India is better off compared to the United State.
Currency
India’s currency is the Indian Rupee. It was adopted as the national currency in 1947 after the country gained independence. The currency is denoted as INR. Its exchange rate with dollar is at 1.00 INR= 0.015434 US Dollar. The exchange rate is floating since the exchange rate is determined by foreign exchange market not the Reserve Bank of India. Since Rupee is the sole currency in India, the dollar is not used in India.
Trading partners
India has many trading partners. According to its ministry of Commerce and Industry, they include United States, United Arab Emirates, Hong Kong, China, United Kingdom, Singapore, Germany, Vietnam and Netherlands just to mention a few that tops the list. India participates in foreign investment. There exit trade surplus in India as it participates in exporting their goods and services to other countries. The percentage of India’s GDP is 19.2 % to exports.
From the data presented above, India is doing well in terms of the economy. It has a GDP growth of 7.1% which is even higher compared to the United State. Its unemployment rate is also low at 3.6 %. However its inflation rate is high at 4.8% attributed to increase in prices of goods. Their economy is a growing one and if the statistics will continue as they are, India will be one of the economic giants in the future.
Reference
India’s Unemployment rate retrieved from: https://www.ceicdata.com/en/indicator/india/unemployment-rate
U.S Bureau of Labor Statistics
Das, G. (2006). The India Model. Foreign Affairs, 2-16.