India’s time tested institutions offer foreign investors an environment that guarantees the security of their long-term investments. These include a free press, a judiciary, which can overrule the government, a sophisticated legal and accounting system, and an intellectual infrastructure. Indian economy has posted an excellent average growth rate of 6% since 1990. 2002 inflation rate was 5.4% and unemployment rate of 8.8%. Today, India is one of the most exciting emerging markets in the world, increasingly tied to the global economy. It offers skilled managerial and technical manpower that can match the best available in the world. A middle class of India, whose size exceeds the population of the USA or the European Union, provides India with a distinct strength in global competition. India’s highly competitive private sector accounts for over 75% of its Gross Domestic Product. India’s 2002 GDP per capita is estimated to $2,540. India’s total GDP was $2.66 trillion, accounting 50% to services, 25% agriculture, and 25% industry. The size of India’s economy is about 25% compared to the US $10 trillion economy in 2001. India is the fourth largest economy in the world, and has the second largest GDP among developing countries, based on purchasing power parity. Economic indicators are promising.

The Reserve Bank of India (RBI) was established 1935 and is the sole authority for issue of currency in India – Indian Rupee. The Bank acts as banker to the Central Government, state governments, commercial banks, state cooperative banks and some other financial institutions. It administers monetary policy to ensure stability in prices. RBI plays an important role in maintaining the stability of exchange value of the rupee and acts as an agent of the Government in respect of India's membership of International Monetary Fund. Indian Rupee has been relatively stable against major foreign currencies in the past few years. Currently the exchange rate against the US dollar is about 47 Indian Rupee to $1. The Reserve Bank also handles the borrowing program of the Government of India. Agriculture has been the preoccupation of the majority of the Indian population. Since independence, however, India has achieved a good measure of self-sufficiency in manufacturing goods. Textile is the largest industry in the country and accounts for one third of India’s total exports. Major industries also include iron and steel industry, machinery, transportation equipment, food processing, mining, petroleum, software, etc. Among the Third World countries, India is a major exporter of heavy and light engineering goods.