Economic Analysis of India

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ECONOMIC ANALYSIS OF INDIA
The Indian Economy is the tenth largest in the world by nominal Gross Domestic Product and the third largest in terms of purchase power parity.
India after the growth of over 9% during 2005-08, moderated to growth of 6.7% in 2008-09 because of the global financial crisis due to the fiscal and monetary space, but with time the economy recovered to growth of 8.4% in 2009-10 and 2010-11.
The slowdown in the economy began in the second quarter of 2011-12, when the growth rate declined to 6.70% from level of 8%. Growth has been in the range of 5.30 -5.50 % in the quarter four of 2012-13. The slowdown is not only confined to India. Globally there has been a general slowdown in the economy.
The growth rate of advanced economies declined from 3.0% in 2010 to 1.3% in 2012. Even the emerging economies have slowed down in this period, due to the result of slowdown in the export markets. China’s growth declined from 10.4% in 2010 to 7.8 % in 2012. Brazil’s growth dipped from 7.5% in 2010 to 1.5% in 2012.

(http://businesstoday.intoday.in/bt500/sector-wise-analysis.jsp)

GIST OF INDIA’S ECONOMIC SURVEY 2013

The Gross Domestic Product is to expand up to 6.7% in 2014; it warned that inflation and a high current account deficit (CAD) are the two major concerns in this year. This study states positive impact in the recovery of the global economy and the recent government policies including the steps to open-up foreign investment in various sectors like aviation and retail and others. According to the study India is on the track to meet its fiscal deficit target of 5.3% of Gross Domestic Product in current year, and to narrow it down to 4.8% of Gross Domestic Product in next year which is 2015.

The study reco...

... middle of paper ...

...plementing the policies for the rural development, as most of the population lives in rural India. There is a scope for large scale infrastructure development and need to efficiently carry out the other schemes, so that the benefits could penetrate to lower level of population. Tourism is thriving sector in India and there is a need to harness its potential. This would help in raising our Forex reserves and would create more employment opportunities.

Threats:

Corruption and terrorism are the major threats faced by India. This is because both hamper the trade and the growth of people, which is a necessity for the overall economic growth. The rising inflation, black-marketing and hoarding also poses threat to the economic development. Economic growth, mainly the exports, have downward trend because of the worldwide economic downturn and thus is a cause of concern.

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