No, it shall survive the storm…We are talking of the Indian Economy – in midst of this global financial dilemma. It took lot of pressure and effort to reach the place that it is experiencing now – Indian economy has surely outshined a lot of its peers. Is the Indian economy still given the title of the ‘lumbering tiger’? Can it never outwit the super-active dragon?
No doubt that the Indian economy has been treading an exceptional growth path since the last decade. Being the least hit of all economies, the Indian economy has really survived the storm of global financial crisis. Rating agencies like, Moody's, have stated that the strong performance is a resultant factor of renewed growth between India and China. Growth figures of Indian economy:
- Real Gross Domestic Product (GDP) at factor cost – 6.7% in 2008-09
- Growth of GDP in agriculture, forestry and fishing – 1.6% in 2008-09
- Growth of GDP in industry – 3.9% in 2008-09
But as of now, the Government is undertaking every possible means to restore the India economic growth to 9% annually. Some other Indian economy growth projections are:
- World Bank has forecasted an 8% growth for India in 2010
- Economists predicted a 6.5% growth for 2009–2010
- Goldman Sachs predicts a 5.8% for 2010
- The Government has raised the GDP growth forecast to 8.5% for FY11.
Foreign Inflows of India economy:
| Indicators | Unit | Month | FY 09 | FY 10 |
| Net FII (equity) | US$ bn | Oct | -4.1 | 1.9 |
| Gross FDI | US$ bn | Aug | 2.3 | 3.3 |
| Gross ECBs | US$ bn | Sep | 2.8 | 1.3 |
Taking the leading indicators of India economy into consideration, it suggests that the India economy will definitely continue to improve in a steadfast pace. The ongoing interest rates, exchange rate, stock market index indicate that the economic conditions have been let loose for a considerable time period and should be managed in a manner that the business confidence index improves.
Foreign direct investments in India saw a rise from US$ 25.1 billion in 2007 to US$ 46.5 billion in 2008 – that indicates an 85.1% growth in FDI inflows (being the highest across the globe). On the other hand, showing the growth pattern of India economy, the Indian equity market is touted as the third biggest bourse after China and Hong Kong in Asian region.
India Economy statistics:
- The foreign exchange reserve of India stood at US $285.5 billion on October 2009.
- India's GDP was US $1.217 trillion in 2008.
- India economy's GDP growth was 7.09% in 2008.
- Exports contributed to the Indian GDP in 2008 with a growth rate of 24.0%.
- Imports contributed to the Indian GDP in 2008 with a growth rate of 30.34%.
- India's wholesale based annual inflation rate increased to 1.51% as on October 17, 2009.
With all the figures showing strong growth, possibilities for improvement of the India economy cannot be ruled out.