India

Politics:

• Analysis

  India politics: Signs of spring in winter session

  The recent month-long winter session of India's parliament drew to a raucous close on December 20th, following heated debates over the government's proposed reform programme. The issue of corruption, which had hijacked the previous parliamentary session, was put on the backburner. The Indian National Congress will continue to expend large amounts of its political capital in managing its tenuous grip on power, with the result that governance is likely to be hampered.

  The session was, however, more productive than the monsoon session, which had been washed out after the opposition did not allow parliament to function over dubious coal-block allocations made by the government. The disruptions meant that lawmakers had spent only 25 hours (out of a possible 120) considering legislation, according to a New Delhi-based think-tank, PRS Legislative Research. Only four of the 30 bills listed for parliamentary consideration were passed during the monsoon session. By contrast, the Lok Sabha (the lower house of parliament) worked for 53% of its scheduled working hours, while the corresponding figure for the Rajya Sabha (the upper house) stood at 58% in the winter session, according to PRS. Six of the 25 bills listed for parliamentary consideration were passed, while eight bills (out of ten that the government intended to present) were introduced in the legislature for discussions.

  Among the bills passed were key reforms-oriented legislation such as the banking regulation bill and the companies bill. The former aims to strengthen the Reserve Bank of India's regulatory powers, in addition to allowing the central bank to issue licences to new banks. The finance minister, P Chidambaram, believes that the regulation would enable the creation of "world-size banks" in India. The companies bill, which was also approved by the Lok Sabha, aims to consolidate and improve standards of corporate governance and seeks to enforce profit-making firms to contribute to social development.

  Shot in the arm

  However, the highlight of the winter session was a crucial vote on the government's decision in September to allow foreign supermarket chains, such as Wal-Mart (US) and Tesco (UK), to own up to a 51% stake in multi-brand retailing ventures in India. Under Indian law, such a decision is the prerogative of the executive arm and does not need parliamentary approval. Yet faced with the prospect of a repeat of the monsoon session washout, the government relented to opposition demands for a symbolic vote on the issue. The motion, brought in by the main opposition Bharatiya Janata Party, led to four days of intense debate amid fears that small-shop owners, who make up over 90% of India's retail sector (worth an estimated US$450bn), may be put out of business by larger foreign retail chains. The motion was defeated 253-218 in the Lok Sabha and 123-109 in the Rajya Sabha on the back of the Congress-led United Progressive Alliance (UPA) government's confidence-and-supply arrangements with two regional parties, the Samajwadi Party and the Bahujan Samaj Party.

  The symbolic and non-binding vote will serve to consolidate the government's position in parliament and silence its critics somewhat on the issue. It would also come as a shot in the arm as it attempts to overcome perceptions of policy paralysis by implementing a raft of politically difficult reforms which it announced in September.

  Notwithstanding the modest legislative gains made in the winter session, crucial measures relating to land acquisition, pensions and taxes remain pending. Ironically, at a time when the issue of corruption has caused widespread resentment, the eagerly awaited Lok Pal bill-which would set up an independent ombudsman to investigate graft-appears nowhere in sight.

  Looking ahead

  The next session of parliament, which is likely to begin in February 2013, is the all-important budget session. It could prove to be the last opportunity for the government to press ahead with its reforms programme before next year's provincial assembly elections in as many as ten states, and before the national poll, which is due in mid-2014. However, precisely because of this reason, the embattled UPA government is likely to push for expensive welfare schemes, which it believes will aid its re-election prospects. This could take the form of a food security bill, which the government is expected to introduce in parliament in 2013. The measure aims to provide around one-half of the rural population and one-quarter of people in urban areas with at least 7 kg of foodgrains per person each month at heavily subsidised prices-a commitment that would contribute to aggravating India's delicate fiscal position. Also complicating Congress's commitment to reforms is opposition both from those across the political aisle and within the UPA coalition. Congress continues to manage a tenuous coalition and its regional allies are highly susceptible to responding to local sentiments, which may be incompatible with unpopular economic reforms. The UPA's focus on political expediency and survival is thus likely to make prospects of consensus difficult on crucial reforms-oriented bills in the next session, too.

  December 28, 2012

• Background

  India: Political forces at a glance

  Political outlook: Political forces at a glance

  Present government: The United Progressive Alliance (UPA) coalition won a second five-year term at the April-May 2009 general election. The Indian National Congress party, which dominates the ruling coalition, won 206 of the 543 elected seats in the Lok Sabha (the lower house of parliament). The UPA lacks a majority in its own right, and relies on the support of minor and regional parties to achieve a 272-seat majority. Congress's main rival at national level, the Bharatiya Janata Party (BJP), performed poorly in the 2009 poll, as did Congress's communist erstwhile allies. The main opposition grouping in parliament, the BJP-led National Democratic Alliance, has lost the full support of some of its member parties since the general election.

  Next election: A general election must be held by May 2014. The next presidential poll is due in 2017.

  Composition of Lok Sabhaa, May 2009 general election
  United Progressive Alliance (UPA; governing coalition)	262
  Indian National Congress	206
  All India Trinamool Congress	19
  Dravida Munnetra Kazhagam	18
  Nationalist Congress Party	9
  National Conference	3
  Jharkhand Mukti Morcha	2
  Indian Union Muslim League	2
  Kerala Congress (Mani)	1
  All India Majlis-e-Ittehadul Muslimeen	1
  Viduthalai Chiruthaigal Katchi	1
  National Democratic Alliance (NDA)	159
  Bharatiya Janata Party	116
  Janata Dal (United)	20
  Shiv Sena	11
  Rashtriya Lok Dal	5
  Shiromani Akali Dal	4
  Telangana Rashtra Samithi	2
  Asom Gana Parishad	1
  Third Front	74
  Left Front	20
  Bahujan Samaj Party	21
  Biju Janata Dal	14
  All India Anna Dravida Munnetra Kazhagam	9
  Telugu Desam Party	6
  Janata Dal (Secular)	3
  Haryana Janhit Congress	1
  Fourth Front	27
  Samajwadi Party	23
  Rashtriya Janata Dal	4
  Lok Janshakti Party	0
  Other parties & independents	21
  Totalb	545
  a The lower house. b Including two representatives of Anglo-Indians appointed by the president.
  Source: Election Commission.

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  August 28, 2012

• Structure

  India: Political structure

  Official name

  Republic of India

  Form of state

  Federal republic, with 28 states and seven union territories

  Head of state

  The president, Pranab Mukherjee, was elected in July 2012 for a five-year term by the members of the central and state legislatures

  The executive

  The prime minister presides over a Council of Ministers chosen from the elected members of parliament

  National legislature

  Bicameral. The Lok Sabha (the lower house) has 545 members—543 elected from single-member constituencies (79 seats are reserved for "scheduled castes" and 40 for "scheduled tribes"), and two representatives of Anglo-Indians appointed by the president. The Rajya Sabha (the upper house) has 245 members—233 elected by weighted votes of the elected members of parliament and the legislative assemblies of states and union territories, and 12 appointed by the president.

  State legislatures

  Unicameral or bicameral, with elected members; state governors are appointed by the president

  Legal system

  Based on the 1950 constitution and English common law

  National government

  The United Progressive Alliance (UPA), a coalition led by the Indian National Congress, won the largest number of seats in the April-May 2009 general election and formed a government

  National election

  The most recent Lok Sabha election was held in April-May 2009; the next is due by May 2014

  Main political organisations

  Indian National Congress; Bharatiya Janata Party (BJP); Trinamool Congress (TMC); Dravida Munnetra Kazhagam (DMK); Samajwadi Party (SP); Rashtriya Janata Dal (RJD); Janata Dal (United); Bahujan Samaj Party (BSP); All India Dravida Munnetra Kazhagam (AIADMK); Biju Janata Dal (BJD); Rashtriya Lok Dal (RLD); Nationalist Congress Party (NCP); Communist Party of India (Marxist), or CPI (M)

  Key ministers

  Prime minister: Manmohan Singh (Congress)

  Agriculture: Sharad Pawar (NCP)

  Chemicals: M K Alagiri (DMK)

  Civil aviation: Ajit Singh (RLD)

  Coal: Sriprakash Jaiswal (Congress)

  Commerce & industry, textiles: Anand Sharma (Congress)

  Communications & information technology: Kapil Sibal (Congress)

  Defence: A K Antony (Congress)

  External affairs: Salman Khurshid (Congress)

  Finance: P Chidambaram (Congress)

  Home affairs: Sushil Kumar Shinde (Congress)

  Law & justice: Ashwani Kumar (Congress)

  Petroleum & natural gas: Veerappa Moily (Congress)

  Power: Jyotiraditya Scindia (Congress)

  Railways: Pawan Kumar Bansal (Congress)

  Rural development: Jairam Ramesh (Congress)

  Urban development: Kamal Nath (Congress)

  Central bank governor

  Duvvuri Subbarao

  December 01, 2012

• Outlook

  India: Key developments

  Outlook for 2013-17

  • The Indian National Congress-led United Progressive Alliance government is likely to complete its second five-year term, which ends in May 2014, despite problems of instability in the ruling coalition.
  • The need for Congress to focus on maintaining a viable coalition, potentially at the expense of policy and even ideology, will remain paramount in the run-up to the next general election.
  • The 2014 poll will return another coalition government, likely to be led by either Congress or the main opposition Bharatiya Janata Party (BJP). The political power of regional and caste-based parties will continue to grow.
  • Efforts to implement economic reforms will be impeded by the government's lack of a reliable parliamentary majority. Its plan to cut the budget deficit t0 3% of GDP by fiscal year 2016/17 (April-March) looks overly ambitious.
  • Real GDP growth (on an expenditure basis) will slow to an estimated 5.8% in 2012/13. Economic expansion will average 7.4% a year in 2013/14-2017/18, driven by private consumption and investment.
  • The Economist Intelligence Unit forecasts that the rate of inflation will slow in 2013-17. But it will still be rapid, with consumer prices rising by 7.6% a year on average as structural factors that tend to push up inflation persist.
  • The current-account deficit, which reached an estimated 4.3% of GDP in 2012, is forecast to narrow steadily in the next five years, to 2.2% in 2017.

  Review

  • Preparations are being made by an anti-corruption campaigner, Arvind Kejriwal, to launch a new political party on November 26th, with the aim of exerting greater pressure on the government to tackle graft.
  • Afghanistan and India have signed a range of economic agreements, including a pact that will enable India to play a larger role in developing Afghanistan's resource-rich mining sector in the future.
  • Non-seasonally adjusted factory output contracted by 0.4% year on year in September, reflecting weakness in the capital goods sector. The August index was revised downwards, with output growing by 2.3% (2.7% previously).
  • Wholesale price inflation slowed slightly in October, to 7.5% year on year, from 7.8% in September. The rate of consumer price inflation accelerated slightly, to 9.8%, from 9.7% in September.
  • The widening of the trade deficit, which increased to a record US$20bn in October, was driven by continued strong oil imports, which rose by 31.6% year on year in the month. Exports meanwhile fell by 1.6%.

  December 01, 2012

Economy:

• Background

  India: Country fact sheet

  Fact sheet

  Annual data	2011a	Historical averages (%)	2007-11
  Population (m)	1,202	Population growth	1.2
  GDP (US$ bn; market exchange rate)	1,858b	Real GDP growth	5.7
  GDP (US$ bn; purchasing power parity)	4,508	Real domestic demand growth	5.4
  GDP per head (US$; market exchange rate)	1,545	Inflation	7.9
  GDP per head (US$; purchasing power parity)	3,750	Current-account balance (% of GDP)	-2.3
  Exchange rate (av) Rs:US$	46.7b	FDI inflows (% of GDP)	2.3
  a Economist Intelligence Unit estimates. b Actual.

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  Background: India gained independence in 1947, after two centuries of British colonial rule. Partition at the same time created the state of Pakistan, with which India has fought three wars, two over the disputed territory of Kashmir. India is the second most populous country in the world, with more than 1.2bn people in 2010. Its economy is the 11th-largest in the world measured in nominal US dollars, but it is the third-largest when measured at purchasing power parity exchange rates. The large and inefficient public sector co-exists with a sizeable and diversified private sector.

  Political structure: India has been a democracy since independence. The growing importance of regional parties has made coalition government the norm at federal level. Democratic procedures are, on the whole, respected. The prime minister is the leader of the government, requiring the support of a majority in parliament. The president is the head of state, and, although limited in executive power, can influence the formation of governments at both state and national levels when no party has gained an outright majority. The judiciary is formally independent and is becoming increasingly assertive.

  Policy issues: India emerged from the 2009 global recession in better economic shape than most countries in Asia. However, the progress made in the boom years of the mid-2000s on cutting the fiscal deficit has been reversed, and the government needs to promote market-friendly policies. It will also need to make hard decisions on raising taxes. The possibility that rapid inflation could return poses a major risk to macroeconomic stability.

  Taxation: The top rate of both personal income tax and corporation tax for Indian companies is 30%. The corporation tax rate for foreign companies is 40%. However, a complex system of exemptions reduces the effective tax rate for Indian firms to less than 20%. All companies pay a 10% tax on distributed profits. Customs duties have been lowered substantially but remain high by international standards. The budget for fiscal year 2012/13 (April-March) included a proposal to amend the Income Tax Act to facilitate the taxation of crossborder acquisitions.

  Foreign trade: India's trade deficit (in balance-of-payments terms) widened to US$168bn in 2011, from US$132bn in 2010, as both exports and imports recovered sharply following the 2008-09 global financial crisis. Exports increased by 36% in 2011, to US$307bn, while imports rose by 33% to US$475bn.

  Major exports 2011/12a	% of total	Major imports 2011/12a	% of total
  Engineering goods	22.0	Petroleum & petroleum products	31.7
  Petroleum products	18.3	Gold & silver	12.5
  Gems & jewellery	15.4	Electronic goods	6.7
  Textiles & textile products	9.2	Non-electrical machinery	6.2
  Leading markets 2011	% of total	Leading suppliers 2011	% of total
  UAE	12.6	China	11.0
  US	11.0	UAE	7.6
  China	6.1	Saudi Arabia	5.3
  Singapore	5.2	US	4.6
  a Fiscal year (April-March).

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  December 01, 2012

• Structure

  India: Economic structure

  Data and charts: Annual trends charts

  
  

  

  December 01, 2012

• Outlook

  India: Country outlook

  India: Country outlook

  FROM THE ECONOMIST INTELLIGENCE UNIT

  POLITICAL STABILITY: The embattled Indian National Congress-led United Progressive Alliance (UPA) coalition government is being swamped by a series of high-profile corruption scandals. Moreover, Congress's bias towards prioritising its political survival over good government in the past year has resulted in policy paralysis. In September, in an attempt to respond to its critics and reverse India's economic slowdown, the government unveiled a series of long-awaited economic reforms. The political fallout from the introduction of these measures was immediate, with one of the coalition's key parties, the Trinamool Congress, withdrawing its 19 members of parliament (MPs) from the ruling coalition in protest. This has left the UPA five seats short of a majority in the Lok Sabha (the lower house of parliament). Yet the government is unlikely to be in imminent danger, as it has confidence-and-supply arrangements with two regional parties, the Bahujan Samaj Party and the Samajwadi Party, which have 43 MPs between them.

  ELECTION WATCH: The next general election is due by May 2014. Although the government's waning popularity and lack of a working majority in parliament have raised the possibility of an early poll, we expect the UPA coalition to complete its term. This is largely because the opposition is weak and divided and is therefore in no position to mount a strong challenge. Given the growing strength of regional and caste-based parties in India, the 2014 election is certain to return another coalition government, likely to be led by either Congress or the BJP. Another important factor at the next election will be the success or otherwise of a new anti-corruption party.

  INTERNATIONAL RELATIONS: Crossborder terrorism and the dispute over Kashmir (which both India and Pakistan administer in part but claim in full) will remain central issues in relations between the two countries. The Indian government's weak domestic position reduces its scope for allowing itself to be seen as adopting a conciliatory stance towards Pakistan. Relations with Afghanistan have improved considerably in the past year and are likely to continue to strengthen, with India expected to play an increasingly important role in that country following the withdrawal of international forces in 2014. The deepening of ties between India and Afghanistan is perceived by many Pakistanis as a threat to their country, raising the possibility that some elements in Pakistan might seek to destabilise India. The Economist Intelligence Unit continues to expect domestic political concerns to preoccupy leaders in both countries, harming the prospects for compromise. However, relations will remain broadly stable, with no outbreak of hostilities but no significant breakthroughs either.

  POLICY TRENDS: Efforts to implement structural economic reform will continue to be hindered by the government's lack of a reliable parliamentary majority in the period preceding the next general election, which must be held by May 2014. After several false starts, the government announced a series of reforms in September aimed at tackling India's burgeoning fiscal deficit and creating new jobs. These include the raising of administered fuel prices and the liberalisation of restrictions on foreign investment in leading sectors. However, priority will also be given to populist measures as the general election approaches. Even in the event that the BJP (which is considered to be more business-friendly than Congress) forms the next coalition government, the pace of reform in 2014-17 will be slowed by coalition politics and opposition from vested interests.

  ECONOMIC GROWTH: Real economic growth (on an expenditure basis) got off to a poor start in fiscal year 2012/13 (April-March), coming in at 3.9% year on year in the first quarter of the fiscal year (growth on a factor-cost output basis was stronger, at 5.5%). Moreover, massive power outages that affected India in late July and a poor monsoon will have held back GDP growth in the second quarter. A slowdown in growth in private consumption (which accounts for more than one-half of nominal GDP) is particularly worrying: high-frequency data, including figures for vehicle sales and retail sales, indicate that private consumption growth is likely to remain weak during the remainder of this year. High interest rates continue to deter capital investment, and the RBI is unlikely to loosen monetary policy unless inflationary pressures abate. As a result, we estimate that real GDP growth will slow to 5.8% in 2012/13, from 6.9% in 2011/12. Growth in private consumption is forecast to decelerate from 5.5% in 2011/12 to 4.8% in 2012/13. Weak business and confidence will limit investment growth, which will slow to 4.8% in 2012/13. The need for fiscal consolidation will mean that government consumption growth remains at around 5%. India is better insulated from international trends than many other emerging-market economies, but weak demand in the EU will continue to hamper the country's export growth and to serve as an additional constraint on investor enthusiasm. The external balance will subtract slightly from real GDP growth in 2012/13.

  INFLATION: Inflationary pressures remain worryingly high, with wholesale prices rising by 7.5% year on year in October and consumer prices up by 9.8%. The weakness of the rupee (which makes imported goods more expensive in local-currency terms) and India's persistent fiscal deficit will be further sources of inflationary pressure. The government will need to address its burgeoning subsidy bill (for food and fuel) in the near term, and its efforts in this regard could push up food and fuel costs. The food component carries a weighting of around one-half in the consumer price index (and around one-quarter in the wholesale price index), meaning that food price rises will remain a crucial determinant of inflation in 2013-17. Some of these factors will moderate in 2013, and the average rate of consumer price inflation will consequently slow to 8.2%, from an estimated 9.3% in 2012. Wholesale price inflation will prove more stubborn, at 7.3% on average in 2013, compared with an estimated 7.6% this year. In 2014-17 we expect a further slight moderation in the rate of inflation, with wholesale prices increasing by 7% a year on average and consumer price rises averaging 7.6% annually. However, any surge in international oil prices or a failure of the monsoon in India (which would reduce food supplies and thus push up food prices) could cause inflation to exceed our forecasts.

  EXCHANGE RATES: After depreciating by an estimated 12.5% in 2012 owing to increases in the trade and fiscal deficits, the rupee is forecast to strengthen slightly during the forecast period, from an estimated average of Rs53.3:US$1 in 2012 to Rs48:US$1 in 2017. The rise in the currency's value will be driven primarily by strong inflows of foreign investment, attracted by India's bright economic prospects. The current-account deficit is not expected to pose a threat to the rupee, as it is forecast to average a modest 2.7% of GDP in 2013-17. Given India's relatively rapid forecast rate of price increases in the forecast period, the rupee's nominal strengthening will represent a substantial appreciation in real terms, amounting to 7.2% a year over the next five years. Our forecast is thus subject to downside risks: portfolio investment flows remain inherently volatile, inflation could surge, or the government could suffer a fiscal crisis. Any of these developments could trigger rupee depreciation.

  EXTERNAL SECTOR: The current-account deficit, which is expected to reach the equivalent of 4.3% of GDP in 2012, is forecast to narrow steadily in the forecast period, to stand at 2.2% in 2017. The improvement will be driven by rapid growth in nominal GDP. India will continue to suck in merchandise imports, with growth in imports forecast to average 14.4% a year in 2013-17. Exports are forecast to rise even faster, at 17.8% a year. However, the differential in the two rates of growth will not be sufficiently large to compensate for exports' lower starting point in absolute value terms, and the trade deficit is thus forecast to widen to US$309bn in 2017, from an estimated US$205bn in 2012. Services exports will retain their vital role in external trade as information technology and business-process outsourcing continue to lure Western firms to India. Services exports are projected to record average annual growth of 11.4% in 2013-17, pushing up the services surplus to US$99bn by 2017, from an estimated US$70bn in 2012. The income deficit, which is small at present, will widen steadily, to reach US$44bn by 2017, reflecting an increase in the repatriated profits of foreign companies operating in India. The current transfers surplus will rise over the forecast period, to reach US$149bn in 2017, owing to strong growth in remittances from Indian workers overseas.

  December 01, 2012

• Forecast

  India: Country forecast summary

  Country forecast overview: Highlights

  • Despite the loss of one of its coalition members following a disagreement over economic reforms, the Indian National Congress-led United Progressive Alliance government is unlikely to be in imminent danger. Having braved resistance from some of its coalition allies as well as from opposition parties, Congress will now have to persuade state governments to adopt its reform package, which seeks to loosen restrictions on foreign investment. The party will also have to work hard to deal with the numerous corruption scandals that have come to light in the past two years and to counter the perception that its efforts to tackle graft have been inadequate.
  • The Economist Intelligence Unit still expects the government to survive until the end of its second five-year term in May 2014. The next general election is certain to return another coalition government, likely to be led by either Congress or the main opposition Bharatiya Janata Party (BJP). Although the BJP could capitalise on anti-incumbent sentiment on the part of voters, it is also the case that the strength of India's regional and caste-based political parties will continue to grow at the expense of the two national parties.
  • Efforts to implement structural economic reform will continue to be hindered by the government's lack of a reliable parliamentary majority in the period prior to the next general election. Even in the event that the BJP heads the next government, the pace of reform in 2014-17 will be slowed by coalition politics and opposition from vested interests. The pace of fiscal consolidation will be slow, resulting in relatively large budget deficits throughout the forecast period.
  • Real GDP growth (on an expenditure basis) is forecast to slow to 5.8% in fiscal year 2012/13 (April­March). Economic expansion will then accelerate, averaging 7.4% a year in 2013/14-2017/18, driven by private consumption and investment. We forecast that the rate of inflation will slow in the forecast period, but it will still be rapid, with consumer prices rising by 7.6% a year on average as structural factors tending to push up inflation persist.
  • The current-account deficit, which is expected to reach the equivalent of 4.3% of GDP in 2012, is then forecast to narrow steadily, to stand at 2.2% in 2017. The improvement will be driven by the rapid pace of nominal GDP growth. The trade deficit is forecast to widen to US$289bn in 2017, from an estimated US$192.9bn in 2012, despite the fact that the rate of growth in exports will be faster than that in imports.

  Country forecast overview: Key indicators

  Key indicators	2012	2013	2014	2015	2016	2017
  Real GDP growth (%; fiscal years beginning Apr 1st)	5.8	6.5	7.3	7.7	7.6	7.9
  Consumer price inflation (av; %)	9.3	8.2	8.1	7.5	7.2	7.2
  Budget balance (% of GDP; fiscal years beginning Apr 1st)	-6.0	-5.4	-4.7	-4.4	-4.4	-4.2
  Current-account balance (% of GDP)	-4.3	-3.6	-2.7	-2.5	-2.3	-2.2
  Lending rate (av; %)	10.7	10.2	9.9	9.0	8.8	8.8
  Exchange rate Rs:US$ (av)	53.3	51.6	49.9	49.0	48.3	48.0
  Exchange rate Rs:¥100 (av)	67.2	62.5	57.5	55.1	52.4	52.5

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  December 01, 2012

View detailed map

Country Briefing

Land area

3,287,263 sq km (including Indian-administered Kashmir); of the total, 57% is agricultural land and 16% is forest area

Population

1.21bn (March 2011; provisional estimate from 2011 census)

Main towns

Population in millions, 2001 census

Mumbai (Bombay): 16.4

Kolkata (Calcutta): 13.2

New Delhi: 12.8

Chennai (Madras): 6.4

Bangalore: 5.7

Hyderabad: 5.5

Climate

Varied; humid subtropical in Ganges basin, semi-arid in the north-west, tropical humid in north-east and most of the peninsula, tundra in the Himalayas; all areas receive rain from the south-west monsoon in June-September; the south is also served by the north-east monsoon in January-March

Weather in New Delhi (altitude 218 metres)

Hottest month, May, 26-41°C (average daily minimum and maximum); coldest month, January, 7-21°C; driest month, November, 4 mm average rainfall; wettest month, July, 180 mm average rainfall

Languages

Hindi is the national language and the primary tongue of 30% of the population. There are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi and Sanskrit. English is widespread in business circles and as a second language

Religions

Hindu (80.5% in 2001 census); Muslim (13.4%); Christian (2.3%); Sikh (1.9%); Buddhist (0.8%); Jain (0.4%)

Measures

Metric system. Numbers are often written in lakhs (100,000) and crores (10m)

Currency

Rupee (Rs); Rs1 = 100 paisa. Average exchange rate in 2011: Rs46.6:US$1

Fiscal year

April 1st-March 31st

Time

5 hours 30 minutes ahead of GMT

Public holidays

Republic Day (January 26th); Independence Day (August 15th); Mahatma Gandhi's birthday (October 2nd); also major Hindu, Muslim, Christian and other religious holidays

March 01, 2012