India Economy GDP

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[0/5]Total Votes [  ]  
Rate this page:
India Economy GDP expanded at its fastest pace in 18 years during the financial year ended March 31, led by a robust performance of its manufacturing and services sectors, according to official data. At the moment India Economy GDP is sizzling and foreign businessmen and investors are swarming to Bangalore and Mumbai to grab a piece of the action. India's year-on-year growth rate could well hit double figures at some point in 2007, and the country may even grow faster than China for at least one quarter. But economists expect growth to moderate this year due to higher interest rates and a strong rupee.

On the face of it, the figures are compelling. India's real GDP grew by 9.2% in the year to last September (the latest numbers available). Over the past four years the GDP of Indian Economy has clocked up an average annual pace of more than 8%, compared with around 6% in the 1980s and 1990s and a measly 3.5% during the three decades before 1980, when highly interventionist policies shackled the economy. The India Economy GDP seems to be reaping the rewards of reforms that were made in the early 1990s. As a result of which the total trade in goods and services has jumped up to 45% of GDP, from 17% in 1990.

Data released by the Central Statistical Organization showed that the India Economy GDP grew at 9.4% for the year, up from 9% in the previous year. This data proves that the economy is moving at a sustainable fashion towards a higher growth trajectory. It sends a positive signal to the international community and should attract more capital and foreign fund inflows.

The growth in the India Economy GDP is likely to remain strong this year, driven by booming investment and consumption. The government's five-year plan to 2011-12 has an ambitious target of 9% average annual growth. Most Indian economists expect at least 8% over the next five years. To boost sustainable growth, India needs to clear the path ahead rather than risk running an economy beyond its safe maximum speed.