Current State of the Indian Economy

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Current State of the Indian Economy

By | July 2007
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Current State of the Indian Economy

The current scenario of Indian economy has been characterised by optimistic growth and strong macro-economic fundamentals, particularly with tangible progress towards fiscal consolidation and a strong balance of payments position. The advance estimates (AE) of Gross Domestic Product (GDP) at factor cost for 2006-07 has been placed at 9.2 per cent. The industrial sector has shown impressive growth in the current year. Year-on-year industrial growth of 10.6 per cent in the first nine months of 2006-07 was the highest recorded since 1995-96. The main reason being the robust growth in manufacturing sector. In seven of the eight months of the current year, the year-on-year growth of the manufacturing sector was in double-digits. India's telecom sector has been one of the biggest success stories of market oriented reforms, and India is now amongst the fastest growing telecom markets in the world. Tele-density has increased from 12.7 per cent in March 2006 to 16.8 per cent in December, 2006. The total number of telephones has increased from 54.63 million on March 31, 2003 to 142.09 million on March 31, 2006 and 189.92 million on December 31, 2006. With this growth, the number of telephones is expected to reach 250 million by the end of 2007. The infrastructure sector has been expanding on a massive scale. The overall index of six core industries having a direct bearing on infrastructure registered a growth of 8.3 per cent in the current year, which is higher than the 5.5 per cent growth registered during the previous year. In the first nine months of 2006-07, crude petroleum, refinery products and electricity generation registered an acceleration in their growth rates, but there was a decline in the growth rates of coal, cement and finished steel. Also, the Government is actively pursuing Public Private Partnership (PPPs) to bridge the infrastructure deficit in the country. Several initiatives have been taken to promote PPPs...

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